The case involves a dispute between French professional football player Youness Bengelloun, FIFA, and PFC CSKA-Sofia, concerning the failure to comply with a FIFA Dispute Resolution Chamber (DRC) decision. The player had signed a contract with PFC CSKA Sofia in 2012, but the club failed to pay his salaries and compensation for breach of contract. In 2015, the FIFA DRC ruled in favor of the player, ordering the club to pay outstanding salaries and compensation. However, CSKA Sofia faced financial difficulties, was relegated to amateur level, and entered insolvency proceedings in Bulgaria. The player sought disciplinary action against the club under Article 64 of the FIFA Disciplinary Code (FDC) for non-compliance with the DRC decision.
The Court of Arbitration for Sport (CAS) addressed several key legal issues. It ruled that insolvency proceedings are governed by national law, not FIFA regulations, but this application is limited to the extent that national law does not conflict with FIFA rules. The concept of sporting succession of clubs was examined, emphasizing that a club's identity transcends its legal entities and is defined by elements like name, history, and fan base. Sporting succession can occur even without formal legal links between entities, meaning obligations from previous administrations must be respected. This principle applies not only to employment disputes under FIFA's Regulations on the Status and Transfer of Players (RSTP) but also to disciplinary cases under Article 64 FDC, which ensures compliance with FIFA decisions.
The CAS also considered whether bankruptcy proceedings exempt a successor club from disciplinary sanctions under Article 64 FDC, concluding that they do not. The panel assessed the player's diligence in pursuing his claims, noting that creditors must act promptly but acknowledging that Bulgarian bankruptcy law prevents the admission of claims for breach of employment contracts. As a result, the player had no feasible way to recover the awarded amounts through bankruptcy proceedings, making it unnecessary to evaluate his diligence further.
The tribunal ultimately found that PFC CSKA-Sofia, as the sporting successor of the original debtor, was liable for the unpaid amounts despite the insolvency proceedings. The peculiarities of Bulgarian bankruptcy law did not provide a viable path for the player to enforce the FIFA DRC decision, reinforcing the need for disciplinary measures under Article 64 FDC to ensure compliance. The case underscores the importance of sporting continuity and the limitations of national insolvency laws in overriding FIFA's disciplinary framework.
The CAS ruled that PFC CSKA-Sofia must pay Bengelloun outstanding monies totaling EUR 51,566, plus 5% annual interest, and EUR 355,730 as compensation for breach of contract, also with 5% annual interest. The club was fined CHF 15,000 and given a 30-day deadline to settle the debt. If the payment is not made, PFC CSKA-Sofia will face a two-registration-period ban from signing new players. The ban applies to all men's teams, including youth categories, and cannot be circumvented by provisional measures. The ruling emphasizes strict compliance with payment deadlines and outlines clear consequences for non-compliance, reinforcing the principle that clubs must adhere to financial decisions issued by FIFA and CAS.
The final decision upheld Bengelloun's appeal, confirming PFC CSKA-Sofia's liability for the unpaid amounts and reinforcing the importance of enforcing contractual obligations in football. The case highlights the complexities of sporting succession, bankruptcy law, and the interplay between disciplinary and legal proceedings in football governance. It also underscores the necessity for creditors to actively seek recovery of debts through available legal channels while recognizing the limitations imposed by national laws. The ruling serves as a precedent for future cases involving club insolvencies and successor liability, ensuring that financial obligations in football are upheld even in cases of structural changes.