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All types of businesses are susceptible to falling into a commercial dispute. This includes businesses that are sports companies or sports-related organisations. Whatever your type of business, if you fall into a business disagreement, you should try to resolve it without resorting to litigation. Court proceedings can be time-consuming and expensive. One method of resolving a commercial dispute is through arbitration. This article will explain sports arbitration and the legal framework and applications.
What is Sports Arbitration?
Sports arbitration is when arbitration is used to resolve a sports-related dispute. Nowadays, it is the primary method for determining a sports-related dispute. It is an alternative dispute resolution (ADR) method in which an arbitral panel makes a binding decision on a dispute, termed an arbitral award.
What is the Court of Arbitration for Sport?
Established in 1984 in Switzerland, the Court of Arbitration for Sport (CAS) is often called the Supreme Court for sports disputes. The court was established to keep sports disputes out of national courts, and the International Olympic Committee (IOC) had the idea for this. The Court helps resolve sports-related disputes through arbitration, with specific rules and procedures relevant to arbitration.
The Code of Sports-related Arbitration and Mediation Rules (the CAS code) contains procedural rules for sports-related disputes. These are often updated and are currently divided into two main sections as follows:
- the details of the statutes of the International Council for Arbitration for Sport (the ‘ICAS’) and Articles S1-S26; and
- the Procedural Rules (Articles R27-R70).
The ICAS looks after the independence of the Court, including the administration, financing and application of the CAS Code. The procedural rules are divided into:
- Section A: General Provisions;
- Section B: Special, Provisions Applicable to the Ordinary Arbitration Procedure; and
- Section C: Special provisions applicable to the Appeal Arbitration procedure.
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Why is Sports Arbitration Relevant to My Business?
Sports arbitration may be relevant to your business because the CAS Code defines sports-related disputes widely. In addition to what you might typically consider a sports-related dispute, commercial disputes can also fall under the category of sports-related disputes. As such, common commercial disputes relating to sports can include:
- sponsorship agreements where your business may sponsor a sports team;
- media rights which you may argue over where your business is a media one;
- commercial or contractual issues relating to a service or product you provide to the sports body; or
- employment issues, for example, if your business is a recruitment consultant who finds someone a job in a sports business.
Sports-related disputes overlap with a range of areas of law that may be related to your business, such as:
- contract law;
- company law;
- intellectual property law; and
- competition law.
This guide outlines how to resolve commercial disputes.
What Law is Relevant to Sports Arbitration
If you are involved in sports arbitration, your business and the other party can choose which substantive law applies. This is detailed in Article R45 of the CAS Code. If you fail to do so, Swiss law applies.
When you draft your arbitration clause and consider which law applies, you should consider the case’s merits. This could include:
- national laws; and
- general legal principles.
What is the CAS Appeals procedure?
Article R47 et seq. of the CAS Code concerns the CAS appeals procedure, a unique feature of sports arbitration. This can take place where either:
- the rules or regulations of the sports-related body, association or federation allow;
- the arbitration agreement between the parties to the sport-related dispute agrees it can; or
- all other legal remedies have been exhausted per the statutes and regulations of the sport-related body, association, or federation.
Key Takeaways
You may participate in sports arbitration proceedings if you are a sports-related company or do business with one and fall into a commercial dispute. This is where an arbitrator or arbitral panel make a binding decision on your sports dispute. If so, you should be aware of the Court of Arbitration for Sport (CAS), which has rules and procedures for sports arbitration for sports disputes. When participating in sports arbitration, it can be possible to appeal the decision outlined by the CAS.
If you need help understanding sports arbitration and the legal framework and applications in the UK, our experienced disputes and litigation solicitors can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. So call us today on 0808 196 8584 or visit our membership page.
Frequently Asked Questions
Sports arbitration is when arbitration is the method to resolve a sports-related dispute.
Sports arbitration may be relevant to your business because although you are not a sports company, you do business with one.
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