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

Top 5 Football Scandals

 Welcome back to our sports law blog. There has been plenty of controversies involving football, and for a sport attracting plenty of attention and generating plenty of money, it is likely to have its fair share of controversies as well.

Although, most footballers do have excellent virtues and can be a role model on and off the pitch, there are many who are involved in affairs and the like, and when they do get caught, it is devastating for the footballer and those around them.

There have been many scandals in world football ranging from match-fixing to drugs, and many footballers have been in the spotlight for the wrong reasons. This is a list of the top 5 of these scandals, brought to you by the Chris Farnell lawyer blog. 

1. The Calciopoli Scandal 

Calciopoli Scandal in 2006 rocked world football when it emerged that many top clubs in Italy had been involved in influencing the appointment of referees for their games among various other allegations.

Juventus who had won the 2005 and 2006 league were stripped of their titles and were relegated to Serie B where they stayed for one season before returning to top flight immediately. Though Juventus were punished seriously for their involvement, AC Milan and some other clubs could consider themselves fortunate not to endure such serious consequences.

It had a major impact on Italian and world football, and since then, extra precautions have been enforced in football in this regard. Juventus have since not won a single league title and have not been the same force in the last few seasons though under the diligent Antonio Conte, they have shown that they can be serious contenders for the title this season.

2. John Terry's Affair with Wayne Bridge's Wife 

Manchester City defender Wayne Bridge was devastated after it emerged that John Terry could be involved in an affair with his wife Vanessa Perroncel. Bridge and Terry have played together for both Chelsea and England in the past and were considered to be good friends before this incident. It is no surprise that Bridge reacted in this manner and even refused to play for England if he is to play alongside Terry.

In the games against Chelsea that he has taken part since details of the alleged affair emerged, he has refused to shake hands with Terry. The Chelsea defender also had a tough time following the affair, considering that he was stripped of his captaincy before the world cup by Fabio Capello and had to endure plenty of criticism.

3. Robert Hoyzer's Fixing Scandal

German referee Robert Hoyzer was under the scanner after the German football federation suspected him of rigging a Cup game involving Hamburg. He had initially denied the charge but later accepted that he was to be blamed and promised to cooperate completely for the investigation. In the game between Hamburg and Paderborn that was investigated by the DFB, he awarded two penalties against Hamburg and also sent off a Hamburg game.

4. Adrian Mutu Drug Scandal 

Adrian Mutu was signed by Chelsea FC in August 2003 from Parma for big money and then, just over a year of his stay at Stamford Bridge, he was embroiled in plenty of controversy when he was sacked after he was found using cocaine.

This led to his suspension, and he was subsequently moved on by the club. Mutu was ordered to pay a bill in excess of £14.6 million after he was moved on under forced circumstances by the Blues. 

5. The Murder of Andres Escobar

Colombian defender Andres Escobar was murdered in July 1994 just after the team was eliminated from the World Cup due to his own goal, and it is widely believed that it was why he was killed.

It could be some drug traffickers who lost money betting on the team that they targeted the respectable defender. In the above video, it is quite clear that it was an unfortunate error which could happen at times even to the best defenders of the game, and it is a tragedy that he was murdered.

To read more football news and sports law updates, check back soon our blog. You can also read the Chris Farnell lawyer blog here. 

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. 

 Chris Farnell Interview on Facebook about Charlton

Former Charlton director Chris Farnell has been cleared for football club ownership by the EFL. The solicitor had his role as the club solicitor at The Valley terminated in August. He was informed today that his Disqualification Condition has been lifted after successfully appealing to an independent League Arbitration Panel.

The Panel heard that, an inadvertent mistake had been made during the initial Owners and Directors Test application, and that there was no dishonest or deliberate attempt to provide false or misleading information. 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.

The decision means Mr Farnell is now free to reapply, under the EFLs OADT, if he wished to do so without prejudice or restriction.A spokesman for Mr Farnell, said: “Following a hearing on Tuesday October 28 2020, before an independent League Arbitration Panel, Mr Farnell succeeded in his Review Application of the EFL’s decision to impose a ‘Disqualifying Condition’ upon him under the EFL’s Owners’ and Directors Test.”

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.

Farnell was initially appointed by Tahnoon Nimer as a boardroom battle kicked off with Matt Southall and Jonathan Heller. Watch this video to find out more about Chris Farnell and his involvement with Chris Farnell Charlton Althletic football club. Here is an interview from Facebook with Chris. Make sure to leave your comments below and follow our football blog. Here is the Chris Farnell Charlton video.

£20M Negligence Suit for Breach of Duty

Welcome to the Chris Farnell football news and sports law news blog. London firm Mishcon de Reya has admitted breach of duty by failing to file a hard copy of an appeal bundle in time on behalf of a former Premier League football club, the High Court heard today. The claim centres on the signing of midfielder Ricardo Alvarez.

The firm accepts it failed to file Sunderland AFC’s appeal bundle in hard copy with the Court of Arbitration for Sport (CAS) in time during a long-running dispute over the signing of an injury-prone player, but denies that the breach caused any loss to the club.

Sunderland’s professional negligence claim, which the court heard is valued at around £20m but is understood to now be for a smaller sum, centres on the signing of Argentinian midfielder Ricardo Alvarez from Italian giants Inter Milan in 2014.

Under the deal, the player joined the then-Premier League club on loan and would be signed permanently if a pre-existing injury to his left knee did not get any worse. Sunderland says that, after a number of injuries, Alvarez saw a specialist who recommended surgery on his right knee for which Inter Milan would not give permission – so the club terminated the transfer and the player’s contract.

Inter Milan brought proceedings against Sunderland in a case that ultimately went to CAS, which ordered Sunderland to pay Inter Milan €10.5m (£8.8m) plus costs.

Separately, Alvarez successfully brought a claim against Sunderland for wrongful termination of his contract, with the dispute resolution chamber of football’s governing body FIFA ordering the club to pay £4.2m plus interest.

The club appealed to CAS and Mishcon filed an electronic copy of Sunderland’s appeal brief in time, but failed to file a hard copy before the deadline. CAS dismissed Sunderland’s appeal and, on Alvarez’s cross-appeal, ordered the club to pay its former player £4.77m plus interest of £1.1m. Sunderland claims that, as a result of Mishcon’s breach of duty, it lost the chance to challenge FIFA’s jurisdiction and lost the opportunity to argue that Alvarez lied about his knee injury.

However, Mishcon argues that ‘it is inevitable that CAS would have dismissed Sunderland’s appeal’ in any event. CAS rejected Sunderland’s assertion that Alvarez made any fraudulent misrepresentations ‘in unequivocal terms’ on the player’s cross-appeal, Mishcon’s barrister Daniel Saoul QC told the court. Chris Farnell is a sports lawyer from IPS Law. In this blog we follow the latest news and views from the world of sports law. Find out more about Chris Farnell Charlton here. Follow Chris Farnell on Facebook 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.