Court Of Arbitration For Sport Ruling Delivers Bloody Nose To UEFA Financial Fair Play Regulators

Galatasaray has won a challenge raised in the Court of Arbitration for Sport (CAS) against a decision by a UEFA Financial Fair Play chamber to reopen an investigation.

In June of 2018, UEFA and Galatasaray reached an agreement after an investigation had found that the Turkish club had contravened Financial Fair Play regulations. The infractions came to light during the 2017/18 monitoring period review.

The settlement agreed to by Galatasaray included the following:

• Limiting the squad size in European competition to 21 rather than 25 from 2018/19 to 2020/21.
• Significantly limiting spending in the transfer market
• The withholding of €15m in prize money with €9m canceled should the club meet the operational and financial requirements of the settlement agreement.

The settlement was announced on June 13. Nearly four months later, it was announced that the Adjudicatory Chamber had decided to refer the matter back to the Investigatory Chamber for further investigation. Within a matter of days, Galatasaray lodged an appeal with CAS.

CAS found in favor of Galatasaray given that the UEFA chamber had failed to meet the timelines set out in its regulations.

Any decision of the CFCB chief investigator to dismiss a case or to conclude or amend a settlement agreement or to apply disciplinary measures within the meaning of Article 14(1)(c) may be reviewed by the adjudicatory chamber on the initiative of the CFCB chairman within ten days from the date of communication of the decision to the CFCB chairman. UEFA FFP regulations

The ruling was delivered in a press release posted on the CAS website.

The decision by CAS to rule in favor of Galatasaray has delivered a bloody nose to the UEFA Financial Fair Play regulatory bodies. UEFA’s reaction was muted and consisted of a press release that stated it would review the CAS verdict with a view to considering the clarification or amendment of its rules.

It’s a game of inches — and dollars. Get the latest sports news and analysis of valuations, signings and hirings, once a week in your inbox, from the Forbes SportsMoney Playbook newsletter. Sign up here.

The CAS decision appears to provide Paris Saint Germain with some encouragement in it’s challenge to FFP rules and regulations.

As part of a June 13, 2018 press release the Investigatory Chamber announced that it was closing an investigation into the French club. The investigation found that after significant fair value adjustments to sponsorship contracts the team still operated within the financial limits required for 2015, 2016, 2017.

The following month the Adjudicatory Chamber asked for the decision to be reviewed and in September the investigation was reopened.

PSG immediately appealed the decision to CAS, and we await the ruling. Stay tuned.