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Transfer ruling can be of no surprise to football
18/02/2008

The Court of Arbitration for Sport`s (ëCA`s) ruling this week on the controversial transfer of Scottish international Andrew Webster has been described as the most significant decision in football since the Bosman ruling.

However, lawyers from the specialist Football Unit at Brabners Chaffe Street, who successfully represented Webster`s new club Wigan Athletic in the cases before FIFA and the CAS, said that the decision was not only unsurprising but also unlikely to have the impact on the football transfer market that many commentators have predicted.

The defender, currently on-loan with Glasgow Rangers from Wigan Athletic, was the first player to terminate his contract using a mechanism available under the FIFA regulations. The Webster transfer saga began after he activated Article 17 to unilaterally terminate his contract with Hearts a year early following a breakdown in his relationship with club owner Vladimir Romanov. He then joined Wigan and Hearts demanded £5million compensation from the player and Wigan.
In April 2007 the FIFA Dispute Resolution Chamber heard the case and ordered Webster to pay £625,000 compensation for having unilaterally terminated his contract without just cause. Whilst Wigan were completely exonerated from any wrong-doing, FIFA rules dictated that they be held jointly and severally liable for the compensation. Webster also received a two-week playing suspension for failing to serve his notice to terminate his contract four days outside the timeframe stipulated by the FIFA regulations. Heart`s request for Wigan to be banned from transfer activity for two transfer windows was rejected.
All parties appealed the FIFA decision to the CAS which this week has ruled that in applying Article 17 to the facts of this particular case, Webster and Wigan must pay £150,000 to Hearts calculated by reference to the residual value of the final year of Webster`s playing contract.

Leading sports lawyer Matthew Bennett, of Brabners Chaffe Street, who represented Wigan Athletic in the case, said:

`Whilst many commentators are hyping-up this case to be the most significant decision in football since Bosman, it must be noted that the predecessor to the Article 17 mechanism was first adopted by FIFA in March 2001 as part of its deal with the European Commission to ensure that the transfer system remained within the law. This situation has therefore been accepted by world football for nearly 7 years.î

`Whilst clubs may wish to review the terms of their contracts with certain leading players, it seems unlikely that the floodgates will open. The Article 17 route is only available in certain particular circumstances and does not apply to transfers between clubs of the same association. Furthermore, players and acquiring clubs will not wish to become involved in protracted legal proceedings. Just as it did after the Bosman ruling, the transfer system will continue to operate with clubs and players in the main entering into mutually agreed transfers.î

Matthew Bennett, Partner, and Carol Couse, Associate, from Brabners Chaffe Street LLP represented Wigan Athletic with Jim Sturman QC appearing as counsel before the Court of Arbitration for Sport.

Fraser Wishart, PFA Scotland, represented Andrew Webster and Juan de Dios Crespo appearing as counsel before the Court of Arbitration for Sport.

Stephen Sampson and Peter Limbert from Hammonds represented Hearts with Ian Mill QC appearing as counsel before the Court of Arbitration for Sport.


For further information contact Matthew Bennett at Brabners Chaffe Street on 0161 836 8800

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