By Andy Brown
FIFA Face Compensation Claims over 2022 World Cup Switch
The international soccer federation, FIFA, is facing potential claims for compensation from countries that bid to host the 2022 World Cup, if it decides to switch the tournament from summer to winter. In a 17 September statement, the Football Federation of Australia said ‘just and fair compensation should be paid to those nations that invested many millions, and national prestige, in bidding for a summer event.’
FIFA said that as part of the bidding documentation for the tournament, all bidders accepted that the final decision on tournament dates would be made by the FIFA Executive Committee. It also said that no formal investigation into how the bidding process for the tournament was conducted is underway, despite reports to the contrary.
The United States Soccer Federation has refused to be drawn on whether it will take action if the tournament is shifted. European Professional Football Leagues, which represents Europe’s soccer leagues, only called for ‘a thorough assessment to be carried out’. However, TV networks that have paid for the tournament on the understanding that it will not clash with domestic sporting leagues are likely to take a dimmer view. “FIFA has informed us that they are considering and voting on moving the 2022 World Cup,” a spokesman for Fox Sports told the New York Times. “Fox Sports bought the World Cup rights with the understanding they would be in the summer as they have been since the 1930s”.
The decision on whether to switch the tournament to the winter is one of the last items on the FIFA Executive Committee agenda for its meetings on 3-4 October, so a decision before Friday is unlikely.
England & France Plan New European Rugby Tournament
England and France’s top rugby competitions have pulled out of the European Rugby Cup (ERC) and are planning a new tournament. However, ERC is claiming the move is against International Rugby Board (IRB) rules. Any new competition could also result in litigation from broadcasters, who have already signed new deals based on maintenance of the status quo.
It is understood that under Premier Rugby’s £152 million ($246 million) contract, agreed on 12 September 2012, British Telecom’s BT Vision has the right to broadcast any games played at English Aviva Premiership grounds, including European competition games. However, ERC agreed a deal for BSkyB to broadcast its Heineken and Amlin Challenge Cup competitions until 2017/18 on the same date, and is therefore keen for English and French clubs to remain in the competitions. BSkyB declined to comment on whether their exit would jeopardise the deal.
ERC maintains that Premier Rugby’s TV deal breaches IRB Regulation 13.2, which prevents any ‘Rugby Body, Club or Person’ from agreeing a broadcasting deal ‘except with the express written consent of the Union within whose territorial jurisdiction such Match…is to be played’. “[England’s Rugby Football Union] has yet to give its consent, however it hasn’t refused to give its consent either”, said a Premier Rugby spokesperson.
Premier Rugby and the French Top-14 competition are unhappy about the qualification structure for the Heineken Cup. Currently, the top six of 12 English clubs and top six of 14 French clubs qualify for the Heineken Cup, as do three of the four clubs both Ireland and Wales enter in the RaboDirect Pro12 competition. The Italian and Scottish rugby unions nominate two clubs each. “We want to build a new rugby framework built on merit”, said a Premier Rugby spokesperson.
ERC has invited all parties to a 23 October meeting in an attempt to formulate an agreement to put in place European rugby competitions ‘for the 2014/15 season and beyond’. Greame Mew, a Partner with Clyde & Co, has been appointed mediator. However, a Premier Rugby statement said its clubs ‘see no purpose in new discussions starting as late as the end of October 2013’.
Lionel Messi Appears In Court on Tax Fraud Charges
Lionel Messi, who has won the international soccer federation’s (FIFA) player of the year award three times in succession, appeared in a Spanish court on tax evasion charges on 27 September. In June, a Spanish prosecutor filed a complaint alleging that Messi and his father owe €4.2 million in back taxes for the fiscal years of 2007 to 2009. The FC Barcelona and Argentina forward will also have to pay back the accrued interest and could face a fine of up to six times the amount evaded, meaning that the total fine could reach €30 million.
The complaint alleges that Messi and his father avoided paying tax by assigning Messi’s image rights to a network of companies based in offshore jurisdictions. Messi has maintained his innocence and has already repaid over €15 million to the tax authorities. The court said that a verdict would be delivered soon.
Court orders Alarcon to Pay his Agent
A Spanish court has ordered Real Madrid soccer star Isco Alarcon to pay €2.6 million to player agency, Eleven Sports. The company were former agents of the 21-year old, filing a complaint alleging a unilateral breach of a contract set to end in 2016.
The company could be set for a further windfall due to the court’s recognition of Alarcon’s breach of contract. It is also seeking part of a buy-out clause paid by soccer club Malaga to secure Alarcon’s move from Valencia, prior to his joining Real Madrid. Eleven Sports are also seeking compensation for his sponsorship deal with Nike.
Andy Brown is the editor of World Sports Law Report. Readers of Sports Litigation Alert can receive a 10% discount on a subscription to World Sports Law Report. Visit www.e-comlaw.com/wslr10 and input the code ‘WSLR10’ to receive your discount.
