November and December 2024 Roundup
A roundup of football law news and decisions from November and December 2024:
Chelsea FC’s Mykhailo Mudryk provisionally suspended
Chelsea FC’s (“CFC”) Mykhailo Mudryk (“MM”) has been provisionally suspended by the FA for an Adverse Analytical Finding in a urine sample provided by MM in accordance with the FA’s Anti-Doping Regulations (“FAADR”). Regulation 54 of the FAADR provides the FA the power to impose a Provisional Suspension in such circumstances.
CFC’s statement released on 17 December 2024 confirmed MM’s provisional suspension but no further information has been provided by CFC or the FA. An article by Rob Draper of the Guardian published on 21 December 2024 indicates that MM’s urine sample was provided in October 2024.
Rodrigo Bentancur sanctioned
Tottenham Hotspur FC’s (“THFC”) Rodrigo Bentancur (“RB”) has been sanctioned with a seven-match ban and a £100,000 fine in relation to comments he made in a television interview in June 2024. RB was charged with an aggravated breach of the FA Rules, r. E3.1 (see also r. E3.2), as RB’s comments included a reference, whether express or implied, to nationality and/or race and/or ethnic origin.
The Regulatory Commission’s written reasons for the above-stated sanction are available here.
The Regulatory Commission’s written reasons provide a useful reminder of how aggravated breaches of FA Rules, r. E3.1 are to be determined, and the application of the FA Rules, Disciplinary Regulations, Part A – General Provisions, Appendix 1 – Standard Sanctions and Guidelines for Aggravated Breaches (“the Guidelines”) (see paragraphs 18-27 and 45-50).
As anticipated and explained by Football Law on Bluesky, RB subsequently failed in his appeal against the Regulatory Commission’s decision. The Appeal Board’s written reasons for dismissing RB’s appeal are available here.
An interesting postscript in paragraph 33 of the Appeal Board’s decision invites the FA to consider amending the Guidelines’ exception to the Standard Minimum sanction of a 6-match ban for an aggravated breach of FA Rules, r. E3.1 ‘where such a breach has been committed in writing only or via the use of any communication device’:
‘We have referred to the Exceptions to the Standard Minimum Sanction, which apply only where the offence is committed “in writing only or via the use of any communication device”. It may be that those responsible for drafting the Rules will wish to review the Sanction Range for Aggravated Breach in social media cases in the light of the massive increase in the use of social media in recent years and the inevitable risk of such media posts gaining large international exposure’.
Benjamin Mendy partially successful in claim for unpaid wages
Benjamin Mendy (“BM”) was partially successful in his claim for unpaid wages against his former employer Manchester City FC (“MCFC”). Employment Judge Dunlop’s decision is available here.
This article by Charlotte Smith, solicitor and partner at Walker Morris LLP, provides a very helpful summary and analysis of the decision.
Nottingham Forest FC’s owner Evangelos Marinakis loses appeal
As explained in Football Law’s October 2024 Roundup, Nottingham Forest FC’s (“NFFC”) owner Evangelos Marinakis (“EM”) had been sanctioned with a stadium ban for NFFC’s next five first team matches following his conduct at the end of NFFC’s match against Fulham FC on 28 September 2024, which, an FA Regulatory Commission found to be in breach of the FA Rules, r. E3.1
EM appealed against the decision, and on 4 November 2024 it was announced that EM’s appeal had been dismissed. The Appeal Board’s decision is available here. Paragraphs 17-27 of the Appeal Board’s decision provide a helpful reminder of the applicable test when considering an appeal made on the basis that a Regulatory Commission reached a decision to which no reasonable Regulatory Commission could have come.
Hull City AFC’s Óscar Zambrano suspended
Hull City AFC’s (“HCAFC”) Óscar Zambrano (“OZ”) has been suspended ‘until further notice’ by CONMEBOL in respect of, it is understood, a urine sample provided by OZ in March 2024 testing positive for a Prohibited Substance.
HCAFC released a statement on 5 November 2024 identifying that OZ has appealed against CONMEBOL’s decision.
Brighton & Hove Albion FC sanctioned
Brighton & Hove Albion FC (“BHAFC”) has been sanctioned by the Premier League (“PL”) following BHAFC’s breach of r. 313 of the PL’s Youth Development Rules (“YDR”) (available in the PL Handbook), which states:
‘A Club shall not (without the prior written consent of either the Club (or club) at which the Academy Player is registered or with whom the player has entered into a pre-registration agreement), either directly or indirectly, make any approach to or communicate with:
313.1. an Academy Player registered with another Club (or club); or
313.2. a player with whom another Club (or club) has entered into a pre- registration agreement which remains current’.
The sanction imposed on BHAFC is a ‘six-month ban (suspended for one year) from registering any Academy players currently or previously registered with another club. They will also pay a £20,000 fine and the Premier League’s legal costs’.
The sanction was imposed by way of a sanction agreement (see PL Rules, r. A.1.284, W.3.7 and W.12-W.13). A copy of the sanction agreement is available here, which provides some (redacted) background to BHAFC’s breach of YDR, r. 313.
Dumbarton FC enter administration
Scottish Professional Football League (“SPFL”) League 1 club Dumbarton FC (“DFC”) has entered administration and, consequently, been sanctioned with a 15-point deduction by the SPFL in accordance with the Rules and Regulations of the SPFL, rr. E1 and E2. In accordance with the same, DFC will also be subject to a five-point deduction at the beginning of the 2025/26 season.
The SPFL’s statement in respect of the 15-point deduction is available here. DFC’s statement confirming the appointment of administrators on 18 November 2024 is available here. The administrators’ provided their first update on the administration on 19 December 2024, which is available here.
Morecambe FC sanctioned
Morecambe FC, who compete in the English Football League (EFL) League Two, has been sanctioned with a two-point deduction suspended until 30 June 2026 for its five instances of failing to pay amounts due to HMRC on time and self-report the same to the EFL, in breach of the EFL Regulations, reg. 17.1.
The EFL’s Club Financial Review Panel’s decision imposing the above-stated sanction is available here.
The EFL’s Club Financial Reporting Unit’s statement on the decision is also available here.
PL Clubs approve changes to Associated Party Transaction (“APT”) rules
On 22 November 2024 it was announced that the PL’s clubs had approved changes to the PL’s APT rules referred to in section E and found in Appendix 18 of the PL Rules.
The PL’s statement states that the amendments ‘address the findings of an Arbitration Tribunal following a legal challenge by Manchester City to the APT system earlier this year’ (see Football Law’s October 2024 Roundup in respect of that legal challenge), and provides the following summary on the amended APT rules:
‘- The new rules seek to ensure that there is appropriate parity between the treatment of shareholder loans and other APTs going forward, with transitional rules clarifying the treatment of existing shareholder loans within that framework.
- Shareholder loans entered into after 22 November 2024 will be required to be submitted as an APT and subject to an FMV assessment. If the Premier League Board determines the loan to evidently not be at FMV, the club in question shall be required to terminate or vary the loan to reflect FMV and pay any identified shortfall in interest.
- Any Shareholder loan that was entered into before 22 November 2024 and which is replaced with other forms of financing (e.g. by way of conversion to equity or repayment) within 50 days (i.e. by 11 January 2025) will not be required to be submitted as an APT or assessed for FMV.
- Any Shareholder loan that was entered into after 14 December 2021 but before 22 November 2024 and remaining in effect on 11 January 2025 must be submitted as an APT. If the Premier League Board determines the loan is evidently not at FMV, the club is permitted to retain the Shareholder loan on its existing terms, though adjustments must be made to its Annual Accounts for 2024/25 onwards as if, from 22 November 2024, the loan was at FMV.
- Any Shareholder loan that was entered into prior to 14 December 2021 and remaining in effect on 11 January 2025 must be submitted as an APT and be subject to an FMV Assessment upon any drawdown taking place after the 22 November 2024. If the Premier League Board determines the loan is evidently not at FMV, the club is permitted to retain the Shareholder loan on its existing terms, though adjustments must be made to its Annual Accounts for 2024/25 onwards as if any drawdowns made after 22 November 2024 were at FMV’.
The PL Handbook has since been updated to reflect the amendments to the APT rules, which is available here.
EFL League One and League Two clubs agree to changes to Salary Cost Management Protocol
EFL League One and League Two clubs have agreed to changes to each league’s respective Salary Cost Management Protocol (“SCMP”).
A statement from the EFL identifies that the first reporting period under the new SCMP will be the 2025/26 season, and summarises the changes as follows:
‘SCMP is the Financial Fair Play framework in place for Clubs in Leagues One and Two and sets out the percentage of a Club’s turnover that can be spent on player-related expenditure. In League One this is set at 60%, and at League Two it is 50%.
The key changes agreed include a staggering of the amount of owner equity injections that can be included in the calculation, alongside the inclusion of some under-21 players who are deemed established first team players, which will be based on the number of appearances (start and substitute) made.
Another change relates to how other specific football income – including cup income and competition prize money – is recognised within the calculation. This will now be included in a Club’s turnover at the relevant SCMP percentage for their division (League One 60%, League Two 50%), whereas previously this income was included at 100%.
In agreeing to the amendments, Clubs recognise that decisions to invest have to address all areas of Club operations, not just on field matters, and these rule changes will help ensure they can work to that objective’.
FIFA provides interim Regulations on the Status and Transfer of Players
FIFA has adopted an interim regulatory framework in respect of the Regulations on the Status and Transfer of Players (“RSTP”) in response to the Court of Justice of the European Union’s (CJEU) decision in Diarra. For a detailed explanation and analysis of the he CJEU’s decision in Diarra, please see this Football Law article: Diarra: Tout or Rien?
The updated RSTP is available here and the updated Procedural Rules Governing the Football Tribunal are available here. FIFA’s Explanatory Notes on the Interim Regulatory Framework, identifying and explaining the changes to the RSTP and Procedural Rules Governing the Football Tribunal, are available here.
FIFA Clearing House Report 2024
FIFA has released the first report in respect of the FIFA Clearing House since it began operating in November 2022. The report provides:
‘[…] a comprehensive insight into the first 24 months of the operations of the Clearing House. This includes a numerical breakdown […] The report also showcases best practice and the individual experience of clubs and members associations […]’.
The report, along with further data, is available here.
FIFA has also released an updated version of the FIFA Clearing House Regulations, which are available here.
Unify League
A22 has reared its head again in the form of the Unify League, which is A22’s attempt to navigate the pitfalls it experienced with the European Super League.
A22’s full proposal of the Unify League to FIFA and UEFA is available here.
FIFA and UEFA are yet to comment on the Unify League.
13 January 2025