November 22, 2024

Brighton Journal

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FIFA reaches an agreement in a lawsuit seeking to allow matches for local clubs to be held in foreign countries

FIFA reaches an agreement in a lawsuit seeking to allow matches for local clubs to be held in foreign countries

Written by Melanie Ansidi, Adam Crafton, and Paul Tenorio

New York-based Relevent Sports has decided to drop FIFA as a defendant in its antitrust lawsuit against FIFA and the US Soccer Federation, according to a decision between the parties that was filed in U.S. District Court in Manhattan on Monday.

The decision between Relevent and FIFA does not include the US Soccer Federation, which remains a defendant in the case that is still pending and will likely be heard by the US Supreme Court.

It is the latest development in a case in which the ruling could lead to club teams around the world being allowed to play official league matches outside their home territories – an arrangement currently prohibited under FIFA law.

In a statement to athlete, Relevent Sports noted that the agreement was made “while FIFA is considering changes to its current rules on whether matches can be played outside domestic league grounds.”

“Relevent Sports looks forward to supporting FIFA as both sides work to develop the game,” the statement continued.

In a similarly worded statement, FIFA said it “has not admitted any liability and continues to deny the legal claims alleged in Relevent's complaint.”


What is the background to this case?

The athlete He has a comprehensive, easy-to-understand history of the case here, which explains why the parties became involved in the legal battle and all the steps it took to get to this point.

What does the agreement between FIFA and Relevent say?

Relevent and FIFA have agreed that FIFA will no longer be a co-defendant in the lawsuit, the filing said, calling for “the dismissal without prejudice of all claims asserted by Relevent against FIFA in the above-mentioned action.” The filing also states that each side will pay its own attorneys' fees and costs.

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Importantly, the agreement also states that FIFA agrees to abide by any final decision in the lawsuit, as long as it applies to “any rules, policies or practices relating to official matches of the season played outside the stadiums of the league and the participating teams.” province.”

What does this mean for FIFA?

For FIFA, this appears, on the surface at least, to be a surrender. When Relevent sought to bring two La Liga teams – Girona and Barcelona – to play a domestic league match in Miami in 2018, the FIFA Council decided that “official league matches must be played within the territory of the relevant member association.”

While FIFA once appeared to be strongly opposed to moving domestic matches to the United States, that position has now changed dramatically.

FIFA had previously joined US Soccer as a co-defendant, with the national federation already accused of seeking to prevent the growth of Relevent's business as a promoter, while the governing body was also accused of having a conflict of interest. As the national association of the United States, US Soccer has the power to approve all professional soccer games played within its territories and earn millions of dollars in fees for doing so.

Alarm bells may have been ringing within FIFA in July 2023, when a US District Judge ordered that “fact discovery” related to the case be completed by the end of September 2024. Discovery can sometimes become burdensome or embarrassing for major organizations, and can highlight Details they would prefer not to be in the public domain.

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In a recent lawsuit filed in Manhattan on April 1, Relevent said it had reached an agreement with the NFL, and was close to agreeing with FIFA, on what materials would be sought for discovery. FIFA and Relevent agreed to drop FIFA as a defendant days later.

Details of the FIFA settlement were not disclosed, but it is worth noting that Relevent left the door open to relaunch a legal case at any time, by asking the court to dismiss the claims between the parties “without prejudice.”

The athlete FIFA asked whether the implication was that FIFA was now open to holding domestic matches abroad, but FIFA did not respond.

What then?

The outcome of this case could pave the way for teams to play official league matches away from home, meaning teams from around the world could soon look to hold matches in the United States.

FIFA is already bringing major club soccer matches to the United States with the Men's Club World Cup scheduled for the summer of 2025, but this competition represents a new format for a truly global tournament, rather than a domestic league.

Major European leagues have long sought to tap into the huge US trade market through pre-season summer tours. The Premier League played a “summer series” with six teams in the United States last year, selling out NFL stadiums across the country. The 'Summer Champions Tour' takes place this summer with Real Madrid, Barcelona, ​​Chelsea and AC Milan. With the World Cup coming to the United States in 2026, business opportunities are expected to grow.

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Statements from both FIFA and Relevent appear to indicate that this settlement will pave the way for changes to FIFA policy, but the leagues still face opposition from fans and other stakeholders to move matches outside their home country. In 2018, after La Liga and Relevent announced that matches would be held in the United States, the Spanish Footballers' Association issued a statement condemning the decision.

However, this decline may not matter. In 2022, Relevent CEO Daniel Silman told the Spanish pressHe added: “I can assure you that before the 2026 World Cup, there will be official matches in the Spanish League on North American soil.”

On Monday, Sillman issued a new statement: “Bringing official matches from Europe to the United States is an exciting proposition but must be done thoughtfully and collaboratively. We look forward to partnering with FIFA to support the global growth of the game and the best leagues in the world.”

(Photo: Scott Teach/Getty Images for Premier League)