Football News

Pep Guardiola faces fresh questions about allegations of financial wrongdoing by Manchester City Football Club. Manchester City manager Pep Guardiola says he believes the club is not guilty of financial wrongdoing as it faces accusations of more than 100 breaches of Premier League rules. Guardiola was asked more questions about the allegations after Everton was deducted a league-record 10 points last week for financial breaches. The league has accused City of dozens of breaches of its rules. 

They include providing misleading information about its finances over a nine-year period from 2009-18. Potential punishments could include a point deduction or even expulsion from English soccer’s top division. The severity of Everton’s unprecedented punishment has raised questions about the sanctions that could be imposed on City.

Manchester City’s 3-3 draw with Tottenham ended in fury for the champions, prompting Pep Guardiola to say he would not make a “Mikel Arteta comment” and Erling Haaland to write “wtf” on X after the referee, Simon Hooper, stopped play with Jack Grealish clear on goal in added time.

Chris Farnell advises leading Premier League and Football League Clubs, leading sporting and media agents and a number of high profile sporting individuals on a wide variety of matters.

Chris’ practice areas include: Sports, Media & Entertainment. He specialises in image rights, third party ownership issues, player transfers, intellectual property contracts, contract re-negotiations, sponsorship and endorsement contracts, defamation, sports dispute resolution, footballer and agent disputes, doping hearings, regulatory issues, and both contentious and non-contentious intellectual property law. Find out more about this story and Chris Farnell lawyer here.

 The Rise Of Crypto Sponsors In Sport 

Welcome back to the Chris Farnell sports law blog. Here we bring you the latest sports law news. The UK Government, following their recent “comprehensive review” of gambling laws is considering regulating the use of betting companies in English football, which may include a ban on being the main front-of-shirt sponsors.

This could have a profound impact.  Last season, nine of the twenty Premier League clubs had gambling companies as their front-of-shirt sponsor, as well as another six teams in the Championship.

Teams are however already looking elsewhere for sponsors, and these are increasingly coming from the Cryptocurrency sector – A sector which comes with its own set of challenges and concerns.

Betting firms getting the Boot

What is sports law?

Welcome to the Chris Farnell sports law blog. Sports law requires an in-depth familiarity with the leading figures in sports, great knowledge of sport laws and regulations, knowledge of sport institutions and legal proceedings within various legal frameworks. Sports law has a global potential and has been regarded as a gold-mine and untapped market, especially in developing regions. 

Recent news

 Manny Pacquiao may have a difficult time fighting again in the United States if he decides to come back from retirement even for just one bout. The 43-year-old eight-division world champion is still dealing with some legal issues with Paradigm Sports Management at the Superior Court of California.

And while there’s buzz that a Pacquiao comeback is imminent this year according to MP Promotions head Gibbons, a source privy to the situation thinks otherwise. The case filed by PSM – a sports management agency that handles UFC star McGregor – stems from its allegations that Pacquiao breached an earlier agreement with them regarding a fight with welterweight contender Garcia.

But the source denied Gibbons’ claims, saying the situation is similar to what happened the last time when they failed to sign Mayweather for a rematch after the Keith Thurman fight in 2019. They said this was stipulated in the contract Pacquiao signed with promoter Premier Boxing Champions in 2018. They added the only way Pacquiao would be able to fight again in the US is to settle his case with PSM, show remorse and apologize for turning back on his obligations. Find out more about Chris Farnell here. 

Read more about the latest news regarding footballers contracts on Chris Farnell blog here 

On 30 January, an decision was made by the Court of Arbitration for Sport (CAS) which FIFPro, the European professional footballers' union, has already said will be the most significant case to impact upon the football transfer system since Bosman. This case was related to  Andrew Webster, formerly of Heart of Midlothian FC (Hearts), who independently, terminated his contract under article 17 of the FIFA Regulations on the Status and Transfer of Players  in May 2006, and then signed for Wigan Athletic FC (Wigan). Andrew Webster joined Hearts in March 2001 for a transfer fee of £75,000 on a four-and-a-half-year contract. He then signed a new four-year contract in July 2003.

Hearts were unhappy so disputed with  FIFA in November 2006, and in April 2007 FIFA's Dispute Resolution Chamber (DRC) ordered Webster and Wigan to pay Hearts £625,000.

In May 2007, Andrew Webster, Wigan and Hearts, who were all unhappy with the DRC's verdict, appealed to CAS. Hearts requested a payment of £4.6 million in contractual damages, including a claim of £4 million in respect of the alleged replacement value of  Andrew Webster and the loss of opportunity to transfer him. Wigan and  Andrew Webster requested that the compensation be fixed at an amount representing no more than the residual value of his contract - his total salary over the remaining term of the contract.

In its findings, CAS stated that the nature of professional sport required  a reasonable balance between the needs of contractual stability on the one hand and the free movement of players on the other, to find solutions that found to be  the good of football by reconciling in a fair manner the various and sometimes contradictory interests of clubs and players.

CAS found that any alleged estimated value of a player on the transfer market cannot be considered because that form of compensation is not clearly agreed upon contractually, and to impose it by regulation would simultaneously cause the club to be enriched and the player to be punished.

CAS also decided that Hearts did not have the right to claim reimbursement of any portion of the transfer fee paid for Andrew Webster because the fee must be reduced over the term of the contract, and Webster had remained with Hearts for longer than the agreed term of four and a half years under his first contract.

The CAS found that , beyond the protected period, it would be admissible for a club to reclaim a portion of the transfer fee as compensation for unilateral termination, unless such a form of compensation was agreed between the parties and stipulated in the employment contract.

It was discovered that the most appropriate criterion of article 17 to apply and determine the level of compensation due to Hearts was the remuneration remaining due to the player under the employment contract upon its date of termination, which was £150,000, plus interest from the date of termination of the contract. This is significantly less that the £4.6 million claimed by Hearts and is also much lower than the £625,000 that the DRC ordered Andrew Webster and Wigan to pay to Hearts under the original petition to FIFA. In addition, CAS found that  Andrews Webster and Wigan were jointly and severally liable to Hearts for the sum on a strict liability basis. They also considered aggravating factors like if conduct of the player, agent or club (current or future) - was left open in this case because there was no evidence of such factors. Such factors may therefore be relevant in future matters.

In Summary the decision although criticised by FIFA, has to be taken at this stage to represent the legal framework within which the football industry must now operate. Clubs must consider how they can protect themselves in the light of this legal framework, this will include careful drafting of players' contracts and more frequent contract renegotiation. Players will also be able to use this decision to pressure clubs into more regular renegotiations of contracts. The likely inflationary effects on wages and destabilisation of contractual stability for clubs will no doubt frustrate FIFA and others within the football industry.

Chris Farnell advises leading Premier League and Football League Clubs, leading sporting and media agents and a number of high profile sporting individuals on a wide variety of matters. Learn more about Chris Farnell Charlton here. 

Five substitutions in football

Welcome to the Chris Farnell news blog. Legal changes affecting the game happen all the time, however sometimes they are more important than others. Here we will discussed the recent changes brought in to the beautiful game. Football law makers have recommended five substitutions are implemented permanently in the sport. Find out more here. 

The rule was first introduced by the International Football Association Board (Ifab),in May 2020 - a month before football restarted after being paused because of the Covid-19 pandemic. The Premier League voted against its continuation in the 2020-21 season.

Individual football leagues and competitions will be able to decide whether or not to take on the new rules. The decision by them follows a meeting chaired by Fifa on Wednesday, involving Ifab's Football and Technical Advisory Panels. This is an interesting development. 

The Ifab commented: 

"FAP-TAP today recommended that competitions should be able to decide on increasing the number of substitutes according to the needs of their football environment, while the current number of substitution opportunities should stay the same."

The law makers said it follows "a number of requests from confederations, associations, leagues and other key stakeholders for this option to be introduced permanently". Many Premier League sides are believed to have felt having five subs would unfairly benefit major clubs with stronger squads.

However, some leading managers, including Liverpool's Jurgen Klopp and Manchester City's Pep Guardiola, have previously said the limit on changes has contributed to injury problems. As a sports lawyer, this is something to monitor closely. 

Chris Farnell advises leading Premier League and Football League Clubs, leading sporting and media agents and a number of high profile sporting individuals on a wide variety of matters. To find out more about Chris Farnell from IPS Law online. You can also follow him on the Chris Farnell Facebook page.

 What Is Sports Law?

Welcome to Chris Farnell law blog, ever thought of getting into sport law, here a breakdown of how to get into the work of sports law. 

Sports Law consists of the below elements:  

Contract Law relating to a sportsperson’s sponsors

Employment law relating to one’s club or federation contracts

European Union Law relating to the impact of freedom of movement on transfers

Criminal Law concerning doping or on-field altercations

Unlike areas such as conveyancing, criminal or family law, this specialism cannot necessarily be described as an individual entity that you can train in. Rather than being able to simply study and qualify in in the subject, you would need to have a working knowledge of various legal specialties.

Sports Law in England & Wales

In the late part of the 19th Century, courts began to accept that sport in any form cannot continue to exist without checks or regulations. Some commentators would seek to argue the law stops at the touchline but the actions of both Parliament and judges make clear that the law can and must regulate spectators and sportspeople.

The law has faced problems for example when examining on-field violence, with judges debating whether the conduct falls short of the law or is, in fact, acceptable within the confines of the sporting arena.

The following acts give a brief overview of this legal area:

Safety of Sports Grounds Act 1975

1986

Football Spectators Act 1989

Football Offences Act 1991

Football (Disorder) Act 2000

How to Get Into Sports Law

To give yourself the best chance of starting a career in the field, you should:

Have an general interest and knowledge in sport. Unlike other areas of law where knowing the substantive content is arguably enough, you cannot succeed in the field without a wide interest and passion for the subject

Look at key cases. Whereas most other areas of law are resolved under English and Welsh Law, this is often not the case in sport. The highest appellate body is the Court of Arbitration for Sport who make decisions on cases using their own principles mixed with Swiss Law

Find work experience – whether that’s at a law firm with a sports law department or in another career field within sports

Salaries

There are no fixed salaries for solicitors and sports law salaries will inevitably vary based on the firm’s size and location. The most up-to-date figures according to the Law Society indicate that in 2018, the recommended annual salaries were as follows:

Trainee in London – £22,121

Trainee Outside London – £19,619

Fully Qualified Solicitor in Private Practice – £62,000

Fully Qualified Solicitor in Greater London – £88,000

South England – £63,000

Midlands and Wales – £46,000

North England – £43,000

Where barristers are concerned, they are seen to have more specialist knowledge, allowing them to out-earn solicitors by a significant margin. That being said they are self-employed and work can be sporadic, whereas solicitors are guaranteed a regular salary.

Firms

Some firms in and out of London that deal with the subject are as follows:

Brabners LLP

Walker Morris Solicitors

Richard Nelson LLP

Harbottle & Lewis

Morgan Sports Law

Learn more  Chris Farnell  and his work in sports law here. 

 Sports Injury Claims

Welcome to the Chris Farnell blog. Most sports injury claims consist of a traumatic injury, as opposed to an overuse-type injury. This is due to the fact that you cannot expect to hold another person liable for injuries that happen due to overexertion over time. However, if a sport’s participant causes injury to another participant, it may form the basis of a civil lawsuit. Sports law encompasses legal issues involving both amateur and professional sports. Claims often overlap with labor law, contract law, antitrust law, and tort law. 

Some examples of the most common sports injuries include, but may not be limited to broken bones; head injuries; concussions; hip flexor strains; hamstring strains; acl strains and/or tears; pulled muscles, especially groin pulls; shin splints; sciatica; tennis or golf elbow, which is due to the overuse of forearm tendons; and/or shoulder and knee injuries.

Although a person may assume the risk of injury when participating in a sport, there are some exclusions to the assumption of risk doctrine. How these legal theories may be applied depend on the nature of the sport. Some exclusions to assumption of risk doctrine include Negligence Standard: If a player’s negligence causes another player’s injury, they may be held liable for damages. Asserting negligence requires proof that the defendant breached the duty of care they owed to the plaintiff, and this breach of duty caused the plaintiff’s injury. An example of this would be if a player fails to abide by safety rules of the game; Defective or Faulty Equipment: If the sports equipment used was somehow faulty or defective, and those faults or defects were not anticipated when you voluntarily played the game, you could have a claim against the owner of the property or equipment manufacturer. This may only apply if you were injured as a direct result of the equipment being defective or faulty.

It is imperative to remember that under the assumption of risk doctrine, you cannot generally sue a defendant for your injuries if you signed a contract stating that you would not sue them. A waiver form would be the most common example of such a contract. The purpose of assumption of the risk is to prevent defendant liability, as well as deter an injured party from bringing a lawsuit.

However, expressing assumption of risk is a defense based in contract law. As such, there are a few things to consider The contract may not be in violation of public policy if the contract cannot cover intentional acts. What this means is that if a race car track owner intentionally leaves a wheel in the road with the intention of hurting the plaintiff, the assumption defense will not work; and the plaintiff did not have the capacity to understand the contract. 

If you wish to file a sports injury lawsuit, you should absolutely consult with an attorney like Chris Farnell.

Our experienced lawyers represent many professional sportsmen, sportswomen and teams. Visit the Chris Farnell IPS Law website today to find out how we can provide legal advice for your needs. Learn more about Chris Farnell Lawyer  on his about.me page here. You can also read the latest Chris Farnell Charlton news here. 

Esports

Welcome to the Chris Farnell blog. The esports gaming industry is expected to continue to grow over the next few years and consequently, as seen with the sports industry and gambling, so is the demand for esports betting services. This enthusiasm for esports betting services is occurring. Just as with traditional sports, fans follow teams, watch matches and even attend cup finals, cheering on their favourite stars from around the world and the professionalisation of esports continues to accelerate at a blistering pace. 

In 2020, European giants Fanatic secured a $10m investment before going on to successfully close a £2m crowdfunding round. Similarly, fellow UK team Excel Esports continued their professional evolution by securing a groundbreaking partnership with a non-endemic sponsor, BT.  

Excel also brought in new leadership, including the former director of global marketing at Adidas, to help further their aim of becoming a leading household brand. However, it is not only esports teams that are looking to professionalise. As demonstrated by the number of disputes, there’s been a real increase in esports players seeking to protect themselves by appointing their own legal advisors.

Sports regulators also around the world seem to be gearing up for a year of introducing tougher rules.

For instance, following high-public defeats for the English Football League and Uefa in landmark judgments opposite Derby County and Manchester City respectively, we are likely to see changes to the regulatory regime that football clubs are subject to. 

In particular, this could mean the introduction of salary caps in the Championship to replace the existing financial fair play rules. 

Fans of several clubs will be hoping that the regulators take a sensible approach to enforcement, though, ultimately recognising diminution in value of club’s assets and revenues that were completely unforeseen and have impacted even the best run clubs. 

We are also likely to see the imposition of stronger rules, including caps on fees, for agents. 

Such measures will be hotly contested, though, and ironically, in light of Brexit, may be stopped in their tracks by legislation that originates from Brussels. 

booming demand for esports betting services has created commercial opportunities for players in the esports industry. Indeed, the esports betting industry appears to be primed for quick growth. However, the extent of this growth will depend on, among other things, how consumers, legislators, and industry stakeholders work together to ensure that the various stakeholders’ concerns and perspectives are adequately represented. We will continue to monitor how the esports betting industry continues to adapt and grow.

Check back soon for more!

Chris Farnell has experience advising on sports matters. You can follow Chris Farnell Lawyer on Twitter, where we frequently share our recent advice on sports law. Visit the Chris Farnell IPS Law website here for the latest big sports issues here. You might be interested reading the Chris Farnell Charlton news here.

Third Party Ownership

Welcome to the Chris Farnell Lawyer blog. The issue of Third Party Ownership in football remains a live one, despite FIFA’s outright prohibition in 2015. Any analysis of the current landscape needs to start with an understanding of what is meant by Third Party Ownership, or TPO for short. It reflects the practice, previously widespread in large parts of world football, whereby an investor, the third party, would invest in a player, a club or an academy, usually by way of a loan, in return for a right to a percentage of the future transfer fee or fees that the player who is the subject of the investment attracts.

TPO was a common practice in many parts of the world before FIFA banned it – in particular in Latin America and in Spain, Portugal and Italy. It allowed many smaller clubs to compete with bigger clubs by being able to purchase players for less than they would do had there not been third party investors holding some of the rights of the player. 

The main problem with TPO, however, was the risk of Third Party Influence, that is the risk of third party investors influencing the playing or trading polices of the engaging club. Third Party Influence leads to a number of other problems – potentially undermining the integrity of football, especially where a third party has an interest in a number of players in the same competition, and undermining team stability where third parties are incentivised to force multiple transfers for economic and not football reasons.

So, for example, a loan from a bank to a football club securitized against a 20% assignment of the future fee the club might receive from a transfer of its best player is prohibited. A club’s right to a “sell-on fee” from a second club to which it has sold a player (something not prohibited, because the first club is not a “third party”) cannot be assigned to another party. Imagine Club A sells Player X to Club B for GBP  1  million (approx. EUR 1.17 million) and there is a 25% sell-on fee; three years later Player B’s value has increased to GBP 4 million (approx. EUR 4.7 million), Club A shall receive GBP 1 million when Club B sells the Player for GBP 4 million to Club C. But Club A cannot assign the right to that future sell-on fee, even though there is little real risk in Club A (as a third party) assigning the right or indeed interfering in the ability of Club B to decide whether or not to sell Player X.

In light of all these factors, while governing bodies and regulators will face the harder task of monitoring players (in addition to clubs), if they intend to ensure effectiveness of the ban (which remains) in place under art.18-ter of the FIFA Regulations.

Commercial Contracts

Welcome to the Chris Farnell blog. With the potential financial rewards available in professional sport, and the importance of protecting rights and the revenue generated, it’s not surprising that individuals involved in sport often look to solicitors to protect their interests.

The employment of sports professionals is legally no different to other employment situations. A good contract should always prevent disputes and encourage business performance, which is why it is necessary to choose experienced solicitors when drafting your commercial contracts. Lawyers who represent athletes have generally been trained in the fundamentals of contracts and should be familiar with the current market value of their client relative to other athletes within the same sport. 

Our experienced solicitors at the IPS Law prepare contracts and understand everything about getting a deal done, but equally important getting the terms of the deal right.

We make sure that we understand the nature of the commercial issues that face our clients. It is from this understanding that we identify how to resolve them. We understand that the needs of each client and the circumstances of each deal are never the same and where each agreement needs to address the specific commercial challenges.. 

Chris Farnell is passionate about sports law, and is dedicated to helping all players and stakeholders in this evolving industry to focus on what they do best. Contact Chris Farnell IPS Law online and  speak to one of our dedicated sports law solicitors. Follow Chris Farnell on his Medium page here. You can also read the latest Chris Farnell Charlton news here.

 Sports and IP

Welcome to the Chris Farnell blog. Sports is an Intellectual Property rich industry. Recent trends have shown that elite sportspersons are afforded increasing protection of their image rights. Examples include images of sportspersons in advertising, television and computer gaming. If your image has been used by another person or company in order for them to make financial gain, you are entitled to a proportion of the gain that your image generated.