January 2024 Roundup
A roundup of notable football law news and decisions from January 2024:
Jonjo Shelvey caught in a trap-zonspor
Nottingham forest FC (“NFFC”) is expected to avoid any punishment from FIFA in respect of an error that occurred surrounding Jonjo Shelvey’s (“JS”) loan and subsequent permanent transfer to Çaykur Rizespor.
It was initially announced that JS was joining Çaykur Rizespor on loan, however it became apparent that this international loan would put NFFC in breach of the maximum seven permitted international loans a club can have at any one time (see FIFA’s Regulations on the Status and Transfer of Players (“RSTP”), article 10.9). It should be noted that the maximum number of permitted international loans is being reduced to six from 1 July 2024 (see RSTP, article 10.6).
It has been reported that NFFC mistakenly believed it was within the maximum seven permitted international loans as another NFFC player on an international loan was believed to be exempt from their calculations pursuant article 10.7 of the RSTP. However, it transpired that that player did not fall within the permitted exceptions under article 10.7 of the RSTP.
Upon realising its mistake, NFFC and Çaykur Rizespor renegotiated the loan into a permanent transfer. It is on this basis that it is understood NFFC will avoid any punishment from FIFA.
FIFA Appeal Committee confirms Rubiales’ ban
As explained in Football Law’s October 2023 Roundup, FIFA banned Luis Rubiales from all football-related activities at national and international levels for three years following his inappropriate, uninitiated, and uninvited conduct at the FIFA Women’s World Cup 2023 final on 20 August 2023.
On 26 January 2024, FIFA announced that Mr Rubiales’ appeal against that decision has been dismissed by the FIFA Appeal Committee.
Written reasons for the decision have not been published but will be published should Mr Rubiales request them, and it is possible that Mr Rubiales may appeal against the decision to the Court of Arbitration for Sport (see articles 52 and 54 of the FIFA Disciplinary Code and articles 53, 56 and 57 of the FIFA Statutes).
NFFC and Everton FC (again) charged by Premier League
On 15 January 2024 the Premier League (“PL”) announced that NFFC and Everton FC (“EFC”) had each been charged for a breach of the PL’s Profitability and Sustainability Rules (“PSR”) (found in section E of the Premier League Rules) as both clubs sustained losses above the permitted thresholds for the assessment period ending season 2022/23.
The permitted loss threshold for EFC was £105 million, and the permitted loss threshold for NFFC was £61 million accounting for NFFC’s two season’s in the EFL Championship during the relevant three-year assessment period (PSR, r. E.53-E.54).
The PL’s announcement stated that both clubs have ‘each confirmed to the [PL] that they are in breach of the [PSR]’. Accordingly, any hearing in respect of these breaches of the PSR will deal with the appropriate sanction to impose for those breaches only.
Pursuant to Appendix 1 of the PL Rules – PSR – Standard Directions, any hearing will take place and a decision will be provided before the end of the current 2023/24 PL season.
NFFC’s statement in respect of its charge stated that it ‘intends to continue to cooperate fully with the Premier League on this matter and are confident of a speedy and fair resolution’.
EFC’s statement in respect of its charge indicates that EFC intends to defend the charge, albeit the club does not appear to deny that it is in breach of the permitted loss threshold. In addition to this charge, EFC is awaiting the outcome of its appeal against its earlier breach of the PSR, which resulted in an Independent Commission sanctioning EFC with an immediate ten-point deduction (see this article for an explanation of the Independent Commission’s decision). It has been reported that EFC’s appeal was heard by an Appeal Board on 31 January to 2 February 2024.
PL v Manchester City FC
The PL’s chief executive Richard Masters has confirmed that a date has been set for the hearing of Manchester City FC’s (“MCFC”) 115 charges relating to alleged historical breaches of the PL’s PSR and associated rules. However, Mr Masters was unable to specify the date set for the hearing.
Superdry v MCFC
It has been reported that MCFC is facing a claim from clothing company Superdry plc in respect of MCFC’s sponsor Asahi using the term ‘Super “Dry”’ when appearing on MCFC’s training gear. It is understood that Superdry plc was seeking and may have obtained an interim injunction to prevent the continued use of ‘Super “Dry”’ alongside Asahi’s logo on MCFC’s training gear.
Aston Villa WFC
Aston Villa WFC (“AVWFC”) has been sanctioned with a three-point deduction applicable to the group stage of the FA Women’s Continental Tyres League Cup for fielding an ineligible player in its group match against Sunderland AFCW (“SAFCW”) on 24 January 2024, contrary to rule 8.19 of the Cup Rules (see Appendix 1 of The Women’s Super League and Women’s Championship Competition Rules). The three points were subsequently awarded to SAFCW.
The three-point deduction to the offending team and award of the three points to the opposition team is a standard sanction pursuant to rule 8.14.1-8.14.3 of the Cup Rules.
Reading FC
Another month and another feature for Reading FC (“RFC”).
In protest of the current state RFC finds itself in, RFC’s supporters invaded the pitch during RFC’s match against Port Vale FC on 13 January 2024, which resulted in the abandonment of the match.
While the match between RFC and Port Vale FC has been rearranged for 20 February 2024, RFC’s failure to fulfil a fixture amounted to misconduct pursuant to EFL Regulations, reg. 32.2.
Pursuant to EFL Regulations, reg. 86, RFC and the EFL entered an Agreed Decision in respect of RFC’s misconduct, sanctioning RFC with a three-point deduction suspended on condition that no further EFL fixture is abandoned due to supporters’ disruption during the remainder of the 2023/24 season and the 2024/25 season. The agreed decision is available here.
At the same time that that Agreed Decision was announced, the EFL also announced that Yongge Dai, the owner of RFC, had been charged with misconduct for his continued failure to comply with a previous Disciplinary Commission decision dated 15 August 2023 which required Mr Dai to pay 125% of the club’s forecasted monthly wage bill into a deposit account. The EFL also stated that Mr Dai had been charged with bringing RFC and/or the EFL into disrepute (see EFL Regulations, reg. 21.1.1 and 21.2.1).
An earlier statement released by the EFL on 15 January 2024 provides some narrative to the protracted nature of the issues at RFC, and the dire need for there to be some resolution to the events at the club. This should be read in conjunction with the explanations provided in Football Law’s Roundups for December 2023, November 2023, September 2023, and August 2023.
Doncaster Rovers FC and Swindon Town FC
Doncaster Rovers FC (“DRFC”) has successfully appealed against a sanction automatically imposed by EFL Regulations, reg. 52.6.3(b) and (c) relating to late payment of money owed to Brighton and Hove Albion FC.
The automatic sanction imposed on DRFC was a fine of £2,000 and a three Transfer Window Fee Restriction (as defined in the EFL Regulations).
DRFC was permitted to appeal against the Fee Restriction automatic sanction pursuant to EFL Regulations, reg. 52.6.4:
‘Where a Fee Restriction is imposed under this Regulation 52.6 the Club may appeal to a Disciplinary Commission (within 21 days of the Fee Restriction being applied) such sanction in circumstances where it can prove:
(a) any debt counting towards the Persistent Default was not due and owing at the time; or
(b) the sanction applied to it is disproportionate taking into account all the circumstances’.
DRFC appealed and was successful in reducing the three Transfer Window Fee Restriction to a three Transfer Window Fee Restriction but with the second and third seasons suspended upon condition that DRFC commits no further breach of EFL Regulations, reg. 52.6.
The written reasons for the decision are available here, and provide helpful guidance on the relevant factors to be considered when such appeals are made (see paragraphs 15-17 of the written reasons).
Swindon Town FC (“STFC”) also successfully appealed against an automatic sanction imposed by EFL Regulations, reg. 52.6.3(b) and (c) relating to late payment of money owed to HMRC.
Similarly, the automatic sanction imposed on STFC was a fine of £2,000 and a three Transfer Window Fee Restriction.
STFC appealed and was successful in reducing the three Transfer Window Fee Restriction to a two Transfer Window Fee Restriction but with the second season suspended on condition that STFC commits no further breach of EFL Regulations, reg. 52.6.
The written reasons for STFC’s appeal are available here, and again provide helpful guidance on the relevant factors to be considered when such appeals are made (see paragraphs 13-15 of the written reasons).
FIFA Circular 1874
FIFA Circular 1874 provides an update on the members and chairperson of FIFA’s Agents Chamber, which deals with disputes regarding representation agreements with an international dimension entered into by a football agent and their client on or after 1 October 2023. The chairperson is Brianna Quinn, partner at Bird & Bird, and notable members of the Agents Chamber include Laura McCallum (General Counsel at Aberdeen FC), William McAuliffe (Head of Disciplinary at UEFA) and Simon Cliff (General Counsel at City Football Group).
FIFA Circular 1876
FIFA Circular 1876 provides a welcome announcement of FIFA’s National Dispute Resolution Chamber (NDRC) Recognition Principles (incorporating the new NDRC Standard Regulations).
FIFA has also provided helpful explanatory notes on the NDRC Recognition Principles, which are available here. Note should be made of the transitional provision in article 26(1)(c) of the RSTP applicable to articles 22(1)(b) and (c) of the RSTP providing for the resolution of employment-related disputes of an international dimension being decided by a NDRC.
For an understanding of the competency of NDRCs before these regulatory updates and as a comparator to the regulatory updates, this article by Henry Goldschmidt (then solicitor at Morgan Sports Law but now at Squire Patton Boggs) is very helpful.
Updated FIFA RSTP
FIFA RSTP Edition February 2024 is now available here.
FIFA’s CAS & Football Annual Report 2023
FIFA has published the second edition of the Court of Arbitration for sport (CAS) & Football Annual Report, which provides details of the activities of the CAS in football-related matters in 2023 and useful summaries of leading CAS football cases in 2023. The report is available here.
FIFA’s Global Transfer Report 2023
FIFA has published its Global Transfer Report 2023, providing valuable insights into the amount and values of international transfers in 2023. The report is available here.
6 February 2024