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How Do Football Clubs Make Money in South Africa?

Football clubs in South Africa have multiple revenue streams that contribute to their financial success. Matchday earnings, broadcast rights, commercial partnerships, and other sources of income play a crucial role in sustaining the operations of these clubs

Protecting your brand - Top tips for sports organisations

2024-08-01 - This article explores how sports organisations and bodies can secure protection for their brands, enabling them to create a robust and dynamic brand protection and exploitation strategy.

2024-07-05 –

  • FIFA International Player Transfer Guide helps stakeholders through the transfer process

  • Guide explains workings of the Transfer Matching System and its interrelation with the FIFA Clearing House

  • Transfer system reform one of FIFA’s strategic objectives for the 2023-2027 cycle

Learn more about the Prevention and Combating of Corrupt Activities Act (PRECCA) In this presentation published by Corruption Watch.

The Prevention and Combating of Corrupt Activities Act (PRECCA) aims to prevent and fight corruption in government and in the private sector.

Commentary on the RSTP 2023 Edition
Learn How to Interpret the FIFA Regulations on the Status and Transfer of Players

The Commentary is a crucial document that supports member associations, clubs, players, leagues, coaches and football legal experts in ensuring that the RSTP are applied consistently across the global football community.

COSAFA Offers Diploma in Football Science and Performance Coaching

COSAFA has signed a partnership with the International Soccer Science & Performance Federation (ISSPF) to boost football-related industry knowledge across all levels in the region with a COSAFA Diploma in Football Science & Coaching and a COSAFA Diploma in Goalkeeper Science.

VAR in Football. What Is It & Is It Working?

VAR, or Video Assistant Referee, is an officiating system that has been added to the game of football to try to ensure that the referees make the right decision in a game. The lightning quick nature of the game is part of what makes it so entertaining and enjoyable. -By Football Collective

The SIGA Universal Standards on Sport Integrity

SIGA is a global multi-stakeholder coalition of like-minded organisations that bring together all sides of the Sport Industry to push for Sport Integrity to prevent incidents of corruption. The heart of SIGA’s reform agenda is out in a set of Universal Standards on Sport Integrity. They cover four key areas: (i) Good; (ii) Governance in Sport; (iii) Financial Integrity and Transparency; (iv) Sport Betting Integrity; (v) Youth Development and Protection

Learn More About CAS

CAS Bulletin 2024 - 1

Between the last internal CAS seminar in Budapest in 2019 and the recent one held in Geneva, the CAS has gone through a major period of adaptation. This four-year cycle marked by the COVID-19 pandemic, has led to a major evolution of internal and technical practices, including the development of hearings by videoconference and e-filing systems. Many important changes will occur soon in the CAS IT sector; more specifically, the CAS website will be refreshed, a new efiling system will be implemented allowing automatic filings without prior intervention form the Court Office, and a new system will host the database for jurisprudence. Furthermore, a mobile application will be also developed simultaneously.

Abuse of Power Photo
Avoid Abuse of Power

Narcissism and hubris in leadership are psychological factors strongly associated with the abuse of power.

Learn More About CAS Jurisprudence Below

The reviews below are from the latest Court of Arbitration for Sport (CAS) Bulletin 2023/01. See how signatory federations adjust their governance systems in accordance with the standards set by the CAS decisions, which are based on a well-developed global sports law. For further details on each topic, note the case number, then go to the CAS database of decisions on their website: https://www.tas-cas.org/en/general-information/index/.

Contract / Compensation Termination

A player has just cause to terminate a contract due to non-payment of wages for at least two months, provided the club received a notice of default with a time period to fulfil the financial obligations (CAS 2021/A/7959; CAS 2021/A/7958; CAS 2021/A/7793; CAS 2020/A/7292). However, the outstanding amount may not be “insubstantial” (CAS 2019/A/6533).

“Good cause” to terminate exists when the fundamental terms and conditions which formed the basis of the contractual arrangement are no longer respected. The same does not apply in relation to “auxiliary” terms and conditions (CAS 2019/A/6452).

If a player adopted a pattern of unprofessional behaviour that is not of such gravity as to constitute just cause for termination, it can nevertheless be taken into account by the CAS as a mitigating
factor when deciding on the extent of compensation due to the player for the unjustified termination (CAS 2019/A/6452).

If a player terminates a contract for non-payment of wages and then signs a new contract, the value of the new contract for the period corresponding to the remaining term of the prematurely terminated contract shall be deducted from its residual value (CAS 2021/A/7793; CAS 2020/A/6954; see also CAS 2020/A/6798). However, the reduction is not automatic in case a player received a higher remuneration under their former contract than under their new contract (CAS 2019/A/6578).

“Intention” in failure to pay termination-related compensation is irrelevant (CAS 2020/A/7012).

Where no bonus scheme was set up and there was no indication of the conditional nature of the bonus, a player is entitled to the payment of the whole bonus sum even if he was unable to play for most of the season (CAS 2020/A/6959).

Unless poor results of the team are specifically agreed between a club and a coach as “just cause” for termination, such circumstances do not reach the level of gravity required to justify the early termination of the agreement. Even if agreed, the “poor results” threshold will need to be clearly defined to trigger just cause for termination (CAS 2020/A/6798).

A club that makes the issuance of the International Transfer Certificate conditional upon the conclusion of a settlement agreement under which the player waives their entitlement to claim outstanding remuneration and compensation for breach of contract is exploiting the player’s straitened circumstances, which is not permitted (CAS 2020/A/6727).

Obligations deriving from a “pre-contract” are not as strict as in a definite employment contract; the damages incurred in case of a breach of a “pre-contract” are therefore generally lower because it remains possible that a definite agreement will not be reached (CAS 2020/A/6748).

CAS' Legal Principles

The principle of exceptio non adimpleti contractus is generally not applicable within employment agreements as the Swiss Code of Obligations provides an exhaustive list of the grounds under which a party may withhold its contractual employment obligations due to the breach of the other party (CAS 2020/A/7400).

The ne bis in idem principle does not prevent a judicial body from imposing multiple sanctions for the same violation within a single proceeding (CAS 2020/A/7369).

Financial damage is never considered as “irreparable harm” because such damage may be remedied by means of financial compensation (CAS 2020/A/6796).

The principle of venire contra factum propium provides that when a conduct of one party
has led to legitimate expectations of another party, the first party is barred from changing its course of action to the detriment of the second party (CAS 2020/A/6861).

The estoppel principle protects the legitimate expectation of a person that places reliance upon a representation made by another person (CAS 2019/A/5824).

The principle of electa una via non datur recursus ad alteram allows a party to opt for state court adjudication, though once such option is exercised, the possibility to refer the same case to sport adjudication bodies is precluded (CAS 2019/A/6626; see also CAS 2019/A/6569).

The principle of non reformatio in peius serves to protect an appellant from receiving a higher sanction on appeal than at the lower instance, but does not preclude the imposition of a sanction on a party that was acquitted of liability by the lower instance body (CAS 2018/A/6040).

Derogating from the prohibition of retroactive legislation is only possible if: (i) retroactivity is expressly provided for by law; (ii) it is reasonably limited in time; (iii) it does not lead to shocking inequalities; (iv) it is justified by relevant reasons (i.e., it responds to a public interest more worthy of protection than the private interests at stake); and (iv) it respects acquired rights (CAS 2020/A/7444).

The res judicata effect only goes as far as the panel that issued the decision in question wanted to decide on the matter in dispute. Issues that the first panel deliberately left undecided are not covered by the res judicata effect (CAS 2019/A/6483). The types of decisions that enjoy res judicata effects are defined by law and not by the parties’ autonomy; there is no provision in Swiss law that confers res judicata effects on decisions of association tribunals (CAS 2019/A/6483).

The principle of contra proferentem or contra stipulatorem is an option of last resort i.e., if the intention of the parties cannot be established by any other method of interpretation (CAS 2019/A/6337).

Personality Rights

Access to training and ability to compete with fellow teammates in the team’s official matches is a fundamental right under an employment contract, the violation of which may provide just cause for termination (CAS 2020/A/7370).

The employer’s duty to protect the employee’s “personality” rights includes an obligation not to employ a coach in a different/less interesting position (CAS 2020/A/7175).

Just cause for early termination may also arise if the club does not place the player in a position to perform the agreed work, by not registering him with the national federation and thus preventing him from being qualified to play matches (CAS 2020/A/6954; CAS 2020/A/6770; CAS 2020/A/6950).

Contractual Exchanges / Negotiations

WhatsApp messages sent by the player to the club to discuss the payment deadline amount to informal exchanges, which hold no clearly identifiable expressions of intentions to extend the payment deadline, and therefore do not have any legal effect on the club’s payment obligations vis-à-vis the player (CAS 2020/A/6867).

Where a person without authority enters into a contract on behalf of a third party, rights and obligations do not accrue to the latter unless that party ratifies the contract (CAS 2019/A/6468).

The player can communicate with the club via the club’s e-mail address registered on the Transfer Matching System. It is the exclusive responsibility of the clubs to ensure that the addresses are valid, up-to-date, and regularly consulted (CAS 2020/A/7292).

Regulatory Matters

Candidates for membership in FIFA Council are under no obligation to disclose sanctions that do not concern a violation of the FIFA Code of Ethics (CAS 2021/A/7685).

Candidates for the president of a national association should be of irreproachable behaviour and in possession of a high spectrum of norms and values, including full integrity. The undisputed existence of a final decision by an ethics body of the national association, which reprimanded said person for inappropriate public remarks during a radio broadcast, establish a lack of the requisite integrity (CAS 2019/A/6517).

It is widely recognised that in cases where payments are accepted by an official without a legitimate reason, no further proof is required with regards to the occurrence of an improper influence on the decision-shaping and making – any kind of reward renders the relevant advantage unlawful or improper (CAS 2019/A/6665; CAS 2019/A/6344).

A bridge transfer occurs when a club is used as an intermediary in the transfer of a player from one club to another e.g., to circumvent the payment of training compensation and has three main characteristics: (1) it is made for no apparent sporting reason; (2) there are three clubs involved: (i) the club where the player was firstly registered, (ii) the “bridge club”, usually a club of a lower level, (iii) the final club of destination; and (3) the player is engaged with the bridge club for a short period of time and often does not play any match for such club (CAS 2019/A/6639).

Sanctions

Clubs are strictly liable “for incidents of any kind” based on the conduct of their supporters (CAS 2020/A/6920), though a club’s specific conduct may be relevant in the assessment of the proportionality of the sanction (CAS 2018/A/6040).

Sanctions must be proportionate and justified. Turning autonomy into arbitrariness is not acceptable (CAS 2020/A/6920).

Whenever an association uses its discretion to impose a sanction, CAS shall demonstrate a certain degree of deference to the decision-making bodies of such association, especially in the determination of the appropriate sanction. It is only when the sanction is disproportionate that the CAS must be free to say so and apply the appropriate sanction (CAS 2019/A/6665; CAS 2019/A/6344; CAS 2018/A/6072; CAS 2019/A/6239).

About the Authors

The Authors of the above reviews are: Vladimir Novak, Alice Roux, Margo De Bondt*.

*Dr. Vladimir Novak is an arbitrator at the Court of Arbitration for Sport and an associate at Cleary Gottlieb Steen & Hamilton LLP, Brussels. 

*Alice Roux is an associate at Cleary Gottlieb Steen & Hamilton LLP, Brussels. 

*Margo De Bondt is a stagiaire at Cleary Gottlieb Steen & Hamilton LLP, Brussels. The views expressed are the authors’ own, and they bear sole responsibility for any error or omission.

Summary

The Authors’ Conclusion of the Above Review:

Given the exponential growth of football and recent changes in the regulatory landscape, football cases will likely continue to feature prominently in the CAS workload for the foreseeable future. It remains to be seen whether clubs— appearing in >80% of the CAS football matters in 2020-2021 but prevailing in less than 40% of the cases—will materially improve their success rate in the coming years. It likewise remains to be seen whether appellants from North America and Asia will increase their participation rate before the CAS, which was far below appellants from the other continents.

The CAS proceedings are legally not subject to a stare decisis doctrine. Findings in previous cases do, however, form a persuasive precedent, which is often followed in similar circumstances. Indeed, many of the findings in Section III are not necessarily football-specific and could guide future CAS panels in resolving various contractual and regulatory issues.

Football Club Small Business Idea and Business Plan

INCLUDES FREE BUSINESS PLAN BUILDER - Understanding all of the aspects of the business idea will be the key to getting the Football Club business running like a well-oiled machine. The business plan you develop will help you organize the elements needed into a strategy that you can actually use to startup, by paving a clear road map as to what you need to follow for the lifespan of your business.

I. Human rights in sport regulations
II. Selected CAS cases related to human rights issues
III. Sport and the European Convention on Human Rights (ECHR)
IV. SFT judgements dealing with the application of human rights in CAS matters
V. List of CAS arbitrators with specific expertise in human rights
VI. List of topics related to Human Rights in sport discussed at past CAS seminars

Click here to read the document …

CAS once again confirmed that:

1. In order to impose a sanction to a direct or indirect member, the relevant body of a sport Federation which imposed said sanction must have an attributed competence to do so.
2. A decision that has been characterized as a “punishment” or a “penalty” must be qualified as a disciplinary measure.
3. For a sanction to be imposed, a sports regulation must prescribe the misconduct with which the subject is charged, i.e., nulla poena sine lege (principle of legality), and the rule must be clear and precise, i.e., nulla poene sine lege clara (principle of predictability).

Click here to read the full ruling.

Watch transparency in action as COSAFA broadcasts its entire AGM live. Click here to watch the full proceedings of the 2023 COSAFA AGM

Since 2011, Play the Game has worked with leading academic experts and actors in sport to develop tools to benchmark and develop good governance practices in sports organisations at all levels.

Click here to read the full article …

On this theme page, you can find

  • an introduction to Play the Game’s approach to benchmarking sports governance

  • an overview of Play the Game’s governance projects in historical order

  • link to our theme page about how you can do your own governance benchmarking of international and national sports organisations

  • links to all publications from our governance projects

Play the Game has launched two online tools that allow anyone to benchmark an international sports federation or national sports organisation following the principles of our governance observer tools. Click here to download the tool. 

On this theme page you will find information about and links to the two tools

  • The Sport Governance Observer tool (SGO tool)

  • The National Sports Governance Observer tool

  • (NSGO tool)

FIFA and WHO extend Memorandum of Understanding for four more years

WHO Director-General Dr Tedros Adhanom Ghebreyesus and FIFA President Gianni Infantino sign new agreement in Geneva, Switzerland

Click here for the full story

On 30 March 2023 the Premier League announced various changes to its Owners and Directors Test (“OADT”) which significantly expand its ambit.[1] The redraft of the OADT was published on 6 April 2023 and became effective immediately. The OADT is set out in Section F of the Premier League Handbook.[2] It applies to anyone who becomes an owner of a Premier League club (i.e. someone who obtains control of a club) and anyone who becomes a director of a club. The test applies upon the control or appointment event occurring but is also an ongoing test.

The test principally sets out a list of circumstances in which a person is disqualified from being an Owner or Director of a football club.

Click here to read the article

By Nick Said – 8 May 2023

That South Africa has just a single player featuring in Europe’s top five leagues is a telling indictment of the country’s football, which has seemingly been left behind by the rest of the world.

ForbesAfrica.com

Click here to read the full article in Forbes Africa.

UEFA’s latest benchmarking report found 180 clubs worldwide with around 6,500 players under contract in 2022, but Play the Game’s more recent research identified 256 clubs with shareholders or owners with significant stakes or influence in other clubs.

Using the same metric as UEFA, the number of clubs identified by Play the Game suggests more than 9,000 players are under contract at clubs in MCOs. Some of these clubs will also have relationships with academies that tie in players, so that figure is probably substantially larger.

Click here to read the full report.

By Dennis A. Mumble – March 2022

This paper examines whether the 2022 changes to the SAFA Statutes meet the FIFA alignment objectives and demonstrates how SAFA’s Members have been disempowered by a clique at the top of the governance ladder.

On 13 August 2021, the SAFA NEC resolved to appoint a Task Team of three NEC Members to engage SAFA Members and to conduct a workshop with them “to include the Regional and Provincial structures” and “to ensure alignment with FIFA and CAF”.

Click here for the full story …

The Rights Corner

Learn How to Defend Yourself in Disciplinary Proceedings in Football

Section 1(c) of the South African Constitution proclaims that the country was founded on the supremacy of the Constitution and the rule of law. Therefore, SAFA and its Members, as voluntary associations, are obliged to respect the rule of law by acting at all times within the four corners of their own Statutes.

"A constitution of [a voluntary association like SAFA] is a statutory document. Non-compliance with it equates to non-compliance with the law and ultimately non-compliance with the rule of law" [ZALC J 300/22 Tonyela NO v National Union of Metalworkers of South Africa and CSAAWU and others v Oak Valley Estates (Pty) Ltd and Another [2022] ZACC 7 (1 March 2022) at paras 19.]

Click the heading or image above for further details ...

Learn Whether a SAFA Member Can be Placed Under Administration

Article 2.17.16 of the SAFA Statutes has been abused for quite some time at all levels of the organisation. It is typically used to remove opponents of elected leaders throughout the structures. It is so deeply ingrained in the structures that it has become normal to invoke Article 2.17.16 and it permeates all levels of South African football. This article seeks to correct the deeply-held misconception of the meaning of Article 2.17.16 of the SAFA Statutes, and its counterparts in the SAFA Standard Statutes for Regions and LFAs, and will demonstrate how many leaders have not taken the time to acquaint themselves with the intricacies of the legislation they are charged with implementing. For some time now executive committees have invoked Article 2.17.16 to intervene in matters considered intractable and/or where the matters under the control of the affected Member are not resolved in a manner satisfactory to the mother body. All too frequently, however, this clause has also become a favourite go-to clause to settle political scores. Click the heading or image above for further details ...

Suspensions

Suspensions of individuals are the most common form of discipline meted out by executive committees around the country – yet, no such authority exists anywhere in the SAFA Statutes or the Standard Statutes. It must be clearly understood that the pre-2022 versions of the SAFA Statutes, Rules and Regulations made no provision for a person to be suspended by any executive committee. Article 70 of the 2018 SAFA Statutes drew a firm boundary around the types of sanctions that could be imposed on persons that fall under the jurisdiction of the Association. It states who can be suspended, but not by whom, meaning that only a judicial body can impose such a sanction, within the bounds of the rules.
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What Is the Definition of Disrepute

CAS articulated its definition of “disrepute” in two famous cases. In D’Arcy v AOC, CAS determined that bringing a person into disrepute “is to lower the reputation of a person in the eyes of ordinary members of the public to a significant extent.

What Is Arbitrariness in Sports Law?

The term ‘arbitrary’ describes a course of action or a decision that is not based on reason or judgment but on personal will or discretion without regard to rules or standards.” (https://legal-dictionary.thefreedictionary.com/arbitrary)

What Are Unforeseen Contingencies?

Rules must at all times be clear and precise and a catch-all provision like “unforeseen contingencies” cannot be invoked to mask a sanction for an unrelated breach under another regulation where there is no stated penalty for infringing such. Read more ...

What Is Blocking?

CAS rules require that a federation's internal remedies must first be exhausted before it can accept a referral. But, it also expects that “such legal remedies however need to be actual remedies, i.e. readily and effectively available to an aggrieved party and must grant access to a definite procedure.” [CAS 2017/A/5042 Iurii Anikieiev v. International Draughts Federation (IDF), award of 2 July 2018] As a result, refusal to forward a case to the relevant body in a federation, unreasonable delays in issuing a decision, or "blocking" a party from appealing to a higher body are all taken seriously by CAS, which has consistently ruled that the denial-of-justice principle protects aggrieved parties from such abuse.

What is 'Force Majeure' in Sports?

To capture the essence of the concept, the best example of a genuine force majeure situation is when a judge in the English High Court in the 19th century explained that if a painter contracted to paint a picture was suddenly struck blind, the painter would be excused from performing in terms of that contract. In practice, most force majeure clauses do not excuse a party’s non-performance entirely, but only suspend it for the duration of the force majeure. [Lydia le Roux -Lexis Nexis]