The case involves a dispute between SV Wilhelmshaven, a German football club, and FIFA, stemming from SV Wilhelmshaven's failure to comply with a FIFA Dispute Resolution Chamber (DRC) decision ordering them to pay EUR 100,000 in training compensation to Club Atlético Excursionistas, an Argentine football club. When SV Wilhelmshaven did not pay, FIFA's Disciplinary Committee (DC) imposed escalating sanctions, including fines, points deductions, and ultimately relegation to a lower division in 2012. SV Wilhelmshaven appealed these sanctions to the Court of Arbitration for Sport (CAS), initially naming Club Atlético Excursionistas as the respondent before correcting it to FIFA.
The CAS panel, led by sole arbitrator Michele Bernasconi, addressed several legal issues. First, it clarified that under Swiss law, standing to be sued concerns whether a party has a stake in the dispute, not admissibility. In disciplinary appeals against FIFA decisions, only FIFA can be the correct respondent. The panel also discussed procedural flexibility under Article R48 of the CAS Code, which allows corrections of formal deficiencies but not substantial failures like naming the wrong respondent. The panel emphasized the principle of "indirect" and "dynamic" reference in sports governance, explaining that clubs, through their national federations, are bound by FIFA's regulations, ensuring uniformity in sports governance.
On the substantive issues, SV Wilhelmshaven argued that FIFA lacked jurisdiction over them as they were not direct FIFA members and challenged the legality of the sanctions under Article 64 of the FIFA Disciplinary Code. The panel rejected these arguments, stating that clubs are indirectly bound by FIFA's rules through their national federations. The panel upheld the sanctions, noting that Article 64 permits escalating penalties—first points deductions and then relegation—for continued non-compliance, aligning with the principle of proportionality.
The panel also dismissed SV Wilhelmshaven's attempts to relitigate the underlying payment obligation, emphasizing the principle of res judicata, meaning the original decision was final and binding. The panel found no legal or factual grounds to overturn the sanctions, as SV Wilhelmshaven had repeatedly ignored the payment obligation despite warnings and prior penalties.
Ultimately, the CAS panel rejected SV Wilhelmshaven's appeal, confirming FIFA's disciplinary measures. The ruling underscores the hierarchical structure of sports governance, the binding nature of FIFA's regulations on affiliated entities, and the importance of compliance with disciplinary decisions to maintain fairness and order in football. The case highlights the procedural complexities in sports arbitration, particularly regarding jurisdictional authority and the enforcement of disciplinary actions by international sports bodies. The final decision reinforced FIFA's authority to impose sanctions and the necessity for clubs to adhere to governing body decisions.