In a landmark judgment, the European Court of Justice has ruled that national courts across the European Union must have the power to thoroughly review arbitration decisions made by the Court of Arbitration for Sport, especially when those decisions affect fundamental rights protected under EU law.

The case at the heart of the ruling involved Royal Football Club Seraing, a Belgian football club sanctioned by FIFA for engaging in third-party ownership agreements, a practice prohibited by football’s global governing body. After CAS upheld FIFA’s sanctions and the Swiss Federal Supreme Court confirmed the decision, the club challenged the ruling in Belgian courts. Initially, those courts declined to review the case, citing the finality of arbitration awards. However, the ECJ has now made it clear that such restrictions violate European Union law.

This ruling represents a turning point for governance in European sports. It clarifies that arbitration, even when imposed by international sports organisations, must comply with the legal safeguards provided by the EU. National courts are required to ensure that CAS decisions respect European principles, including competition law and the freedom of movement.

The impact of this decision on European sports is profound. Athletes and clubs now enjoy stronger legal protection, with effective judicial oversight that allows them to challenge arbitration decisions that may be unfair or contrary to EU law. This development ensures that access to justice is not hindered by the traditional finality of arbitration awards.

The Court of Arbitration for Sport in Lausanne

Athletes and clubs gain enhanced legal backing

Sports federations will also face greater transparency and accountability in their dispute resolution processes. The ability of national courts to scrutinise arbitration decisions increases trust in sports institutions and encourages fairer governance. Furthermore, the ruling pushes sports bodies to modernise their internal regulations to better align with European legal standards, reducing uncertainty and the potential for lengthy legal disputes.

There is also the potential for the emergence of arbitration bodies based in the European Union that offer transparent and legally sound forums. Such developments could provide fairer alternatives for resolving sports-related disputes.

Perhaps most importantly, the ruling reaffirms the fundamental principle that no organisation, regardless of its prestige or influence, is above the law. Sports arbitration must respect the rule of law and be subject to judicial oversight within the EU.

This ECJ decision sends a clear message to the world of European sports. Effective judicial protection is a right that cannot be overridden by arbitration clauses or internal regulations. Sports federations are now legally required to adapt and reform their governance systems to meet these standards.

As European sport continues to grow and evolve on the global stage, this ruling lays the foundation for a more transparent, fair, and accountable future. Federations that embrace these changes will be well positioned to build a stronger, more just environment for athletes, clubs, and fans alike.