COURT OF ARBITRATION FOR SPORT (CAS): how much does justice in sport cost?

The Court of Arbitration for Sport (CAS) is the main international arbitration body specialising in sports disputes. It was set up in 1984 by the International Olympic Committee (IOC) with the aim of providing an independent, rapid and technically qualified forum for resolving disputes in the sporting context.

Based in Lausanne, Switzerland, the CAS is competent to judge a wide range of sports-related disputes. Its jurisdiction covers both contractual and commercial conflicts, as well as disciplinary and regulatory issues, involving athletes, clubs, federations, agents, sponsors and other entities in the sports ecosystem.

Despite being recognised for its expertise and independence, characteristics that lead parties to choose it as the arbitral forum in their contracts, resorting to the CAS can represent a significant financial burden.

This article focuses on the costs that must be weighed up when the parties decide, within the framework of a contract or agreement, to include an arbitration clause that gives the CAS jurisdiction to settle any disputes. Knowing and anticipating these costs is essential for making an informed choice and avoiding future surprises and constraints.

1. On the formal competence of the CAS

The CAS has jurisdiction to settle sports disputes whenever the parties have agreed to submit the conflict to its jurisdiction. This agreement may result from:

i. An arbitration clause previously inserted in a contract or in the regulations of a federation or league;

ii. A subsequent arbitration agreement in which the parties voluntarily agree to have recourse to CAS.

In these cases, the procedure will be treated as an ordinary arbitration procedure.

The CAS is also competent to hear appeals against decisions handed down by federations, associations or other sports bodies, provided that:

i. The statutes or regulations of these bodies expressly recognise the possibility of appealing to the CAS;

ii. Or there is a specific agreement between the parties that provides for such an appeal.

In these cases, we are talking about appeal arbitration procedure.

2. The cost of opting for specialised justice

When, in the context of a contract or agreement, the parties choose to include an arbitration clause conferring jurisdiction on the CAS to settle any disputes between them, it is important to bear in mind the financial weight of this choice.

Arbitration before the CAS involves considerable costs and, in certain circumstances, the Claimant may have to bear all the procedural costs from the outset until the final decision, as a condition for the dispute to proceed effectively.

a) Court Office Fee - arbitration fee

When submitting a request for arbitration to the CAS, the Claimant must pay the arbitral tribunal a fixed, non-refundable administrative fee of CHF 1,000.00.

Payment of this amount is a necessary condition for the request for arbitration to be admitted, but it does not cover the costs of the entire procedure.

b) Advanced costs - payment of arbitration costs in advance

Once the arbitral panel has been constituted, the CAS sets the estimated procedural costs (which include the arbitrators' fees, administrative expenses, among others), deadlines and payment methods.

Advanced costs are determined on a case-by-case basis, so the amounts vary from case to case. For example, in an action before a sole arbitrator, where the Defendant is ordered to pay the sum of €1,000,000.00 based on a breach of contract, the arbitration costs could be around €50,000.00.

The costs will be even higher if the dispute is decided by a panel of arbitrators (made up of three arbitrators) instead of a single arbitrator.

The advanced costs are settled after the arbitral panel has been set up and, as a rule, must be paid by the parties in equal proportions (half each). Failure to pay all the costs within the time limit will immediately result in the termination of the arbitration proceedings.

Since the continuation of the proceedings depends on the payment of the advance on costs, it is to be expected that the Claimant will not fail to fulfil its share, since it is the party with a direct interest in the continuation of the proceedings. However, it should be borne in mind that although the general rule provides for the division of costs between the parties, the court will not oblige the Defendant to pay its share. All the CAS requires is that the full amount of the advance be paid within the time limit set.

In practice, the Defendant often declares that it will not pay its share. If this happens, the Claimant will be asked by the tribunal to pay that amount in order to guarantee the continuation of the arbitration proceedings. As a reminder, failure to pay the advance in full will result in the termination of the proceedings.

c) Experts, interpreters and witnesses

Each party will be responsible for any costs associated with hearing their witnesses, experts and interpreters.

3. Who pays in the end?

Once the proceedings have been concluded, the CAS will determine the final amount of the arbitration costs (which may be lower or higher than the amount advanced) and the arbitral panel will decide on the distribution of the costs. The possibilities include: (i) each party bears its own costs; (ii) the costs are shared equally by the parties; (iii) each party bears the costs in proportion to its salary; (iv) the losing party bears all the costs.

Advances on costs paid by the parties are not reimbursable by CAS, except to the extent that they exceed the actual total amount of the arbitration costs.

Even if the winning party has paid all the initial costs, there is no guarantee that it will be reimbursed by the opposing party. Everything depends on the arbitrators' final decision.