The case involves Aris Football Club (Aris FC) appealing against disciplinary sanctions imposed by FIFA for failing to comply with a decision by the FIFA Dispute Resolution Chamber (DRC), which ordered the club to pay a player €58,184 plus interest. Aris FC cited financial difficulties and an ongoing restructuring procedure under Greek bankruptcy law as reasons for non-payment. The Court of Arbitration for Sport (CAS) examined several legal issues, including whether FIFA should have suspended disciplinary proceedings due to the club's financial rehabilitation and whether the sanctions were disproportionate. The CAS panel clarified that while FIFA has discretion under Article 107(b) of the FIFA Disciplinary Code (FDC) to close proceedings in cases of bankruptcy, it is not obligated to do so. The panel emphasized that FIFA must respect national court decisions and laws regarding bankruptcy, as these fall under state jurisdiction, and ruled that sanctions against a club should be suspended during its rehabilitation procedure.
The panel noted that FIFA's Disciplinary Committee (DC) has the authority under Article 64 FDC to impose fines and deduct points proportionally to the unpaid amount, with proportionality assessed case by case. The burden of proof lies with the party asserting a claim, in line with Swiss law and the adversarial nature of CAS proceedings. The panel found that unless sanctions deviate significantly from similar cases, it has limited discretion to alter FIFA’s decisions. Aris FC argued that a Greek court’s decision to initiate restructuring procedures should halt FIFA’s actions, but FIFA proceeded, imposing a fine of CHF 7,500 and potential sporting sanctions like point deductions. The CAS panel upheld FIFA’s authority to act but stressed the need to consider national bankruptcy laws and suspend sanctions during rehabilitation.
The CAS partially upheld Aris FC’s appeal, ruling that the enforcement of FIFA's sanctions should be suspended for the duration of the club’s rehabilitation process. The panel acknowledged that the Greek court’s ruling legally prevented Aris FC from complying with FIFA’s sanctions during rehabilitation but found no grounds to annul FIFA’s decision. The panel also concluded that the sanctions were not disproportionate, as they aligned with FIFA’s disciplinary practices in similar cases. The decision underscores the balance between FIFA’s disciplinary powers and respect for national legal processes, ensuring sanctions would only take effect once the rehabilitation process concluded. The ruling provides a temporary reprieve for Aris FC while maintaining the integrity of FIFA’s regulatory framework.