TAS-CAS – Tribunale Arbitrale dello Sport – Corte arbitrale dello Sport (2010-2011) ———-Tribunal Arbitral du Sport – Court of Arbitration for Sport (2010-2011) – official version by www.tas-cas.org – Arbitration CAS 2011/A/2377 Salernitana Calcio 1919 S.p.A. v. FIFA, order of 23 June 2011 Panel: Mr Lars Hilliger (Denmark), President; Mr José Juan Pintó (Spain); Mrs Margarita Echeverria Bermudez (Costa Rica) Football Request for a stay of the appealed decision Request to intervene in the case as a party A third party may participate as a party to the proceedings, in circumstances associated with joinder and intervention, but subject to a common condition: that it is bound by the same arbitration agreement binding the original parties to the dispute or that the third party and the original parties all agree in writing to such participation.

TAS-CAS - Tribunale Arbitrale dello Sport - Corte arbitrale dello Sport (2010-2011) ----------Tribunal Arbitral du Sport - Court of Arbitration for Sport (2010-2011) - official version by www.tas-cas.org - Arbitration CAS 2011/A/2377 Salernitana Calcio 1919 S.p.A. v. FIFA, order of 23 June 2011 Panel: Mr Lars Hilliger (Denmark), President; Mr José Juan Pintó (Spain); Mrs Margarita Echeverria Bermudez (Costa Rica) Football Request for a stay of the appealed decision Request to intervene in the case as a party A third party may participate as a party to the proceedings, in circumstances associated with joinder and intervention, but subject to a common condition: that it is bound by the same arbitration agreement binding the original parties to the dispute or that the third party and the original parties all agree in writing to such participation. Disciplinary proceedings before the FIFA Disciplinary Committee (DC) are solely a matter of a disciplinary nature in the relationship between a party and FIFA relating to the application of FIFA Statutes and regulations. This means that all the party´s prayers for relief concern and are directed exclusively against FIFA and the decision by the FIFA DC. A third party therefore is not covered by the scope of the decision and is not a party to the decision. Salernitana Calcio 1919 S.p.A. (the “Club” or the “Appellant”) is an Italian football club affiliated with the Italian Football Association, which in turn is affiliated with FIFA. The Fédération Internationale de Football Association (FIFA; the “Respondent”) is the world governing body of football, which is registered in Zurich, Switzerland. Club Atlético River Plate (“River Plate”) is an Argentinean football club affiliated with the Argentinean Football Association, which in turn is affiliated with FIFA. On 18 June 2009 the FIFA Dispute Resolution Chamber (DRC) decided that the Appellant had to pay to River Plate the amount of EUR 280,000.00 as well as 5% interest p.a. as from the expiry of the time limit. On 23 July 2009 the Appellant appealed that decision to the Court of Arbitration for Sport (CAS). On 7 May 2010 CAS decided to partially uphold the appeal of the Appellant and to partially confirm the DRC decision insofar as to state that the Appellant had to pay to River Plate the amount of EUR 145,000.00 as well as 5% interest p.a. as from 3 August 2009. Since no payment was made by the Appellant, on 25 November 2010 disciplinary proceedings were instituted against the Appellant by the FIFA Disciplinary Committee, and the Appellant was urged to pay the outstanding amount immediately. Furthermore, the Appellant was informed that “the case will be on the agenda for the next meeting of the FIFA Disciplinary Committee (FIFA DC) so that disciplinary sanctions (fine, deduction of points, relegation to a lower league) may be imposed on the club”. Since still no payment was made, on 6 January 2011 the Appellant once again was urged to pay the outstanding amount and was informed that if the Appellant failed to submit a statement or pay the full amount by 14 January 2011, the FIFA DC would then decide the case using the file in its position. The FIFA DC did not receive any statement from the Appellant, and no payment was made within the time limit, which is why it decided as follows on 19 January 2011 (the “Decision”): 1. The club Salernitana Calcio 1919 is pronounced guilty of failing to comply with a decision of a FIFA body in accordance with art. 64 of the FDC. 2. The club Salernitana Calcio 1919 is ordered to pay a fine in the amount of CHF 15,000. The fine is to be paid within 30 days of notification of the present decision. Payment can be made in either Swiss francs (CHF) to account (…). 3. The club Salernitana Calcio 1919 is granted a final period of grace of 30 days as from notification of the present decision, in which to settle its debts to the creditor. 4. If payment is not made by this deadline, the creditor may demand in writing from FIFA that six (6) points be deducted from the debtor´s first team in the domestic league championship. Once the creditor has filed this request, the points will be deducted automatically without a further formal decision having to be taken by the FIFA Disciplinary Committee. The order to implement the points deduction will be issued on the association concerned by the secretary of the FIFA Disciplinary Committee. 5. If the club Salernitana Calcio 1919 still fails to pay the amount due even after deduction of the points in accordance with 4. above, the FIFA Disciplinary Committee will decide on a possible relegation of the debtor´s first team to the next lower division. 6. As a member of FIFA, the Federazione Italiana Giuoco Calcio is reminded of its duty to implement this decision and, if so requested, provide FIFA with proof that the points have been deducted. If the Federazione Italiana Giuoco Calcio does not comply with this decision despite being ordered to do so, the FIFA Disciplinary Committee will decide on appropriate sanctions on the member. This can lead to expulsion from all FIFA competitions. 7. The costs of these proceedings, amounting to CHF 2,000, are to be borne by the club Salernitana Calcio 1919 and shall be paid according to the modalities stipulated under 2. above. 8. The creditor id directed to notify the secretariat to the FIFA Disciplinary Committee of every payment received. On 18 March 2011 the Appellant filed a statement of appeal with CAS challenging the Decision rendered by the FIFA DC on 19 January 2011 and requested a stay of the execution of the appealed Decision. By letter of 25 March 2011 FIFA informed CAS that FIFA did not oppose to the requested stay of execution of the appealed Decision. On 28 March 2011 the Appellant filed the appeal brief. Also on 28 March 2011 River Plate forwarded to CAS a request for being allowed to intervene in the case as a party since the outstanding amount was still not paid and since River Plate apparently was informed that the sanctions against the Appellant was still not in force. FIFA filed an answer on 20 April 2011 in which FIFA stated that both the Appellant and River Plate on 5 April 2011 had been informed that the disciplinary proceedings were suspended for the duration of the proceedings before CAS. LAW CAS Jurisdiction 1. Article R47 of the Code of Sports-related Arbitration and Mediation Rules (the CAS Code) states: “An appeal against the decision of a federation, association or sports-related body may be filed with the CAS insofar as the statutes or regulations of the said body so provide or as the parties have concluded a specific arbitration agreement and insofar as the Appellant has exhausted the legal remedies available to him prior to the appeal, in accordance with the statutes or regulations of the said sports-related body”. 2. With respect to the appealed Decision, the jurisdiction of CAS derives from article 64 para. 5 of the FDC and article 63 para. 1 of the FIFA Statutes. In addition, neither the Appellant nor the Respondent objected to the jurisdiction of CAS in their written submissions. 3. It follows that CAS has jurisdiction to decide the appeal. Applicable law 4. Article 62 para. 2 of the FIFA Statutes states: “The provisions of the CAS Code of Sports-Related Arbitration shall apply to the proceedings. CAS shall primarily apply the various regulations of FIFA and, additionally, Swiss law”. 5. Article R58 of the CAS Code states: “The Panel shall decide the dispute according to the applicable regulations and the rules of law chosen by the parties or, in the absence of such a choice, according to the law of the country in which the federation, association or sports-related body which has issued the challenged decision is domiciled or according to the rules of law, the application of which the Panel deems appropriate. In the latter case, the Panel shall give reasons for its decision”. 6. The applicable law in this case shall consequently be the various regulations of FIFA and, additionally, Swiss law. Application for stay of the appealed Decision 7. The Appellant has applied to stay the Decision. Such application is dealt with as a request for provisional and conservatory measures in accordance with article R37 of the CAS Code. 8. In accordance with consistent CAS jurisprudence, when deciding whether to stay the execution of a decision appealed against, the Panel shall consider whether a) the measure is useful to protect the appellant from irreparable harm, b) the likelihood of success on the merits of the appeal, and c) whether the interests of the appellant outweigh those of the opposing parties. 9. However, FIFA, who has in this case imposed the above mentioned disciplinary sanctions on the Appellant, informed CAS by letter of 25 March 2011 that FIFA did not oppose the request for stay, and on 5 April 2011 FIFA informed both the Appellant and River Plate that the disciplinary proceedings were suspended for the duration of the proceedings before CAS. 10. As the parties to the case agree to stay the disciplinary proceedings as described in the Decision, the Panel has decided, by virtue of the present order, to confirm such agreement and accordingly the Decision rendered by the FIFA DC of 9 January 2011 is to be stayed for the duration of these proceedings before CAS. Request from River Plate to intervene in the case as a party 11. As already mentioned, River Plate requested by letter of 28 April 2011 to participate as a party to the arbitration, submitting the following statements in support of its request: “- CA River Plate has always been a party against Salernitana in the FIFA proceedings, and then in the CAS appeal. - The proceedings in both FIFA and CAS have lasted quite four years, and now Salernitana is only trying to avoid payment by losing time with the present appeal. - CA River Plate thinks that it deserves the right to be a party in the present procedure in order to continue to protect its legal rights”. 12. The provision of the CAS Code that governs the participation of a third party in CAS proceedings, which also applies to the appeals arbitration proceedings pursuant to article R54 of the CAS Code, is as follows: Article R41 para. 2 – Joinder “If a Respondent intends to cause a third party to participate in the arbitration, it shall mention it in its answer, together with the reasons therefor, and file an additional copy of its answer. The CAS Court Office shall communicate this copy to the person whose participation is requested and set such person a time limit to state its position on its participation and to submit a response pursuant to article R39. It shall also set at time limit for the Claimant to express its position on the participation of the third party”. Article R41 para. 3 – Intervention “If a third party intends to participate as a party to the arbitration, it shall file with the CAS an application to this effect, together with the reasons therefore within 10 days after the arbitration has become known to the intervenor but before the hearing or before the closing of the evidentiary proceedings if no hearing is held. The CAS Court Office shall communicate a copy of this application to the parties and set a time limit for them to express their position in the participation of the third arty and to file, to the extent applicable, an answer pursuant to Article R39”. 13. By letter of 3 May 2011 to CAS, the Appellant submitted that it objects to the participation of River Plate as a party to the present procedure, whereas FIFA submitted by letter of 2 May 2011 that it does not oppose to the participation of River Plate in the present arbitration. 14. According to the abovementioned provisions and Article R41 para. 4 of the CAS Code, a third party may participate as a party to the proceedings, in circumstances associated with joinder and intervention, but subject to a common condition: that it is bound by the same arbitration agreement binding the original parties to the dispute or that the third party and the original parties all agree in writing to such participation. 15. In the present appeal, pursuant to articles 62 and 63 of the FIFA Statutes, CAS jurisdiction derives from the issuance by FIFA DC of the Decision and is therefore limited to the scope of such decision and to the parties concerned by the same. 16. Notwithstanding the fact that River Plate was a party to CAS 2009/A/1919, during which proceedings the Appellant was ordered to pay the outstanding amount to River Plate, River Plate was not a party to the subsequent proceedings conducted before the FIFA DC. These proceedings before the FIFA DC were solely a matter of a disciplinary nature in the relationship between the Appellant and FIFA relating to the application of FIFA Statutes and regulations and, therefore, do not concern the obligation already imposed by CAS on the Appellant to pay the outstanding amount to River Plate. This means that all the Appellant´s prayers for relief concern and are directed exclusively against FIFA and the Decision by the FIFA DC. The Panel therefore finds that River Plate is not covered by the scope of the appealed Decision and is not a party to the Decision. 17. The Panel further notes that the Appellant opposes the intervention of River Plate as a party to the arbitration proceedings. 18. In the light of the foregoing, the Panel is of the opinion that River Plate cannot be allowed to participate as a party in the present arbitral proceedings and the request is therefore denied. The Court of Arbitration for Sport rules: 1. The Application for provisional measures filed by the Appellant shall be admitted, and the decision pronounced by the FIFA Disciplinary Committee on 19 January 2011 is stayed for the duration of these proceedings before CAS. 2. The request from River Plate to intervene in the present arbitral proceedings as a party is denied. 3. The costs deriving from the procedure relation to the request for provisional measures and the intervention of River Plate shall be determined in the final award.