The case revolves around a dispute between FC Anzhi Makhachkala, a Russian football club, and FC Factor Ljubljana, a Slovenian football club, with FIFA as the governing body. The conflict stemmed from the transfer of a player, E., from FC Factor to FC Anzhi in 1999, followed by a subsequent transfer to FC CSKA Moscow in 2001 for USD 800,000. FC Factor claimed FC Anzhi owed them USD 240,000 from the initial transfer agreement, but the payment was not made. FC Factor sought FIFA's intervention, leading to a decision by FIFA's Players’ Status Committee on 11 March 2003, ordering FC Anzhi to pay the amount within 30 days. FC Anzhi, represented by the Football Union of Russia, appealed to FIFA's Executive Committee, but the appeal was deemed inadmissible on 28 June 2003 due to missing the 20-day deadline and failing to pay the required CHF 2,000 appeal fee, as per FIFA's 1997 Regulations for the Status and Transfers of Players. The decision was notified to FC Anzhi on 25 August 2003, prompting the club to file a request for arbitration with the Court of Arbitration for Sport (CAS) on 12 September 2003, seeking to overturn FIFA's decision and avoid payment to FC Factor.
FC Factor and FIFA responded to the CAS request, with FIFA asserting that CAS could only review whether the formal appeal requirements were met, not the substance of the dispute. The Sole Arbitrator, Bernhard Welten, confirmed CAS's jurisdiction under Article R27 of the Code of Sports-related Arbitration, as FIFA's decision explicitly allowed for an appeal to CAS within 20 days. The Arbitrator also determined that the 1997 FIFA Regulations applied, as the transfer contracts predated the 2001 regulations. The case was decided based on written submissions without a hearing, focusing on whether FC Anzhi's appeal to FIFA's Executive Committee met procedural requirements. The Arbitrator upheld FIFA's decision, ruling that FC Anzhi's appeal was inadmissible due to non-compliance with the deadline and failure to pay the appeal fee, thereby affirming FC Anzhi's obligation to pay FC Factor the claimed amount.
FC Anzhi argued that neither it nor the Football Union of Russia was aware of the formalities for appealing the Single Judge's decision. However, the Arbitrator emphasized that FIFA Statutes (Article 13) oblige member associations to adhere to FIFA's rules and ensure their members comply. Ignorance of procedural requirements was not considered a valid excuse. Article 24 of FIFA's 1997 Regulations mandates appeals to be filed within 20 days of notification, submitted through national associations, and accompanied by the appeal fee. The Arbitrator noted that FIFA's regulations do not require decisions to mention legal remedies, a point supported by Swiss law, which only imposes such a requirement in administrative cases. While the Swiss Supreme Court recommends informing parties of legal remedies, it is not mandatory.
The Sole Arbitrator upheld FIFA's decision, confirming the appeal's inadmissibility due to the missed deadline and unpaid fee, consistent with prior CAS jurisprudence. However, the Arbitrator criticized FIFA's procedural mishandling, including initiating proceedings just before the deadline and failing to respect the parties' right to be heard. Despite these flaws, the Arbitrator dismissed FC Anzhi's application, concluding that the FIFA Executive Committee's decision was correct. The case underscores the importance of adhering to procedural formalities and the consequences of non-compliance, even in the face of procedural irregularities.