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Decoding FIFA Regulations on Sporting Succession and Their Impact on New Football Clubs Inheriting Debts

  • 15 hours ago
  • 6 min read

Football clubs frequently encounter financial challenges that result in bankruptcy, creating questions about the handling of debts and sporting rights. When a new club replaces a bankrupt one, sporting succession becomes a key issue. FIFA regulations are designed to prevent clubs from avoiding financial obligations through re-incorporation, while also considering the interests of creditors, fans, and the sport. This post examines FIFA’s rules on sporting succession, their practical effects, and notable international cases.




Understanding Sporting Succession in Football

Sporting succession occurs when a new football club assumes the sporting rights of a bankrupt or dissolved predecessor. The new entity typically seeks to maintain the legacy, fan base, and competitive standing of the original club. The central question is whether the new club should inherit the predecessor’s debts and obligations.


FIFA addresses this through its Disciplinary Code (Art. 21) and the Regulations on the Status and Transfer of Players (RSTP, Art. 25, para. 1). These rules seek to ensure financial fairness and sporting integrity by preventing clubs from escaping debts simply by dissolving and reforming under a new name.


According to the FIFA Disciplinary Code, Article 21 deals with the consequences of failing to respect FIFA decisions, including financial obligations, but it does not specifically address sporting succession or require a new club to inherit the debts of its predecessor. (FIFA Disciplinary Code, 2023) 


This absence of specific provisions creates a legal gap that can lead to ambiguity in determining whether a new entity is responsible for old debts. In practice, this ambiguity is often resolved by interpreting the intent and broader principles of FIFA’s regulations, as well as by relying on case law from bodies such as CAS and the FIFA Dispute Resolution Chamber. These bodies use factors such as continuity of management, fan base, and use of club symbols to decide if sporting succession has occurred, thereby filling the legal gap left by the lack of explicit rules. (FIFPRO denounces inconsistent CAS jurisprudence on sporting succession, 2022)



FIFA RSTP, Article 25, Paragraph 1

Article 25, paragraph 1 of the RSTP addresses player status in cases of club bankruptcy and sporting succession. If a new entity is deemed a sporting successor, it must honour existing contractual obligations and protect players’ rights during club restructuring.


FIFA and the Court of Arbitration for Sport (CAS) consider several criteria when determining whether a new club is a sporting successor of its predecessor. The main factors typically include:


  • The continuity of the club’s sporting activity, such as playing in the same league or using the same facilities

  • Similarity or continuity of management, ownership, or staff between the old and new entities

  • The transfer of a significant part of the playing squad or key personnel

  • The use of the same name, club colors, badge, or symbols

  • Efforts to maintain the original fan base and community ties

  • Assumption of assets, liabilities, or contractual rights from the previous club (FIFPRO denounces inconsistent CAS jurisprudence on sporting succession, 2022)



The assessment is made on a case-by-case basis, with no single factor being decisive. Instead, the overall circumstances are considered to evaluate whether genuine sporting succession has occurred. (Sporting Succession: Comparative Analysis of CAS 2023/A/9807 and CAS 2024/A/10431, 2025)



Preventing Financial Evasion Through Re-incorporation

FIFA’s regulations are intended to prevent clubs from evading debts by dissolving and re-incorporating under a new name. Without these rules, clubs could repeatedly avoid financial liabilities, undermining the sport’s stability and fairness. (Özkurt, 2021)


According to FIFA, updated football governance regulations are designed to promote fairness and transparency in club management, supporting responsible practices and discouraging financial recklessness in the sport. (FIFA Integrity, n.d.)



Examples from Different Countries and CAS Cases

Several cases demonstrate the international application of FIFA’s sporting succession regulations:


● Greece: Clubs like AEK Athens have faced scrutiny over sporting succession and debt inheritance, with the Hellenic Football Federation enforcing FIFA’s rules to ensure debts were honoured. (Warshaw, 2012)


● Chile: The case of Deportes Concepción involved disputes over whether a new club was a sporting successor and thus liable for predecessor debts. The FIFA Dispute Resolution Chamber (DRC) ruled in favour of creditors. (Weger, 2016)


● Bulgaria: The Bulgarian Football Union has applied FIFA rules to prevent clubs from escaping debts through re-incorporation, with CAS supporting these decisions in appeals. (Vieli, 2026)


● Estonia: The Estonian Football Association has dealt with sporting succession cases where new clubs were held responsible for old debts, reinforcing FIFA’s stance. (Sporting Succession: CAS 2019/A/6461 Tartu Jalgpallikool Tammeka v. FIFA, 2020)


● Romania: Several Romanian clubs have undergone bankruptcy and reformation, with FIFA and CAS rulings emphasising the importance of debt inheritance to maintain sporting integrity. (Steaua București football records dispute, 2014)



The Parma Case: A Notable Example

The bankruptcy of Parma FC in 2015 is a landmark case in sporting succession. After the financial collapse, the club was re-founded as Società Sportiva Dilettantistica Parma Calcio 1913. Despite the new legal entity, FIFA and Italian football authorities required the new club to address the debts of the old one. (Gladwell, 2015)


This case highlights how sporting succession works in practice: the new club can continue the sporting tradition but must face the financial consequences of its predecessor’s failure. Parma’s rebirth was a complex process involving creditors, fans, and football authorities, showing the multi-layered impact of club bankruptcies.



The Role of Creditors in Bankruptcy Proceedings

Creditors, including players, staff, and suppliers, play a key role in bankruptcy and sporting succession cases. FIFA’s regulations protect their rights by ensuring debts are not eliminated through club re-incorporation.


The paritas creditorum principle, or equal treatment of creditors, applies in bankruptcy. New clubs inheriting debts must uphold this principle, preventing preferential treatment and ensuring fair asset distribution. (Sporting Succession: Comparative Analysis of CAS 2023/A/9807 and CAS 2024/A/10431, 2025)


Creditors should take an active role in bankruptcy proceedings to ensure their claims are recognized. However, FIFPRO has raised serious concerns about inconsistent rulings by the Court of Arbitration for Sport on issues of sporting succession, which can affect how creditors’ interests are considered in these disputes. (FIFPRO denounces inconsistent CAS jurisprudence on sporting succession, 2022)


For example, in the CAS 2013/A/3139 case involving the club PAS Giannina, the tribunal found that the new entity was not the sporting successor liable for predecessor debts, despite clear similarities between the clubs. In contrast, in CAS 2011/A/2476 regarding FC Politehnica Timisoara, CAS ruled the opposite and held the new club responsible for outstanding debts. These differing outcomes illustrate the uncertainty creditors can face when seeking to enforce their claims. (CAS 2011/A/2476 Fotbal Club Timisoara SA v. UEFA, 2011)



The Role of FIFA’s Judicial Bodies

Disputes over sporting succession are often complex and require authoritative rulings. FIFA’s judicial bodies include:


● Court of Arbitration for Sport (CAS): The highest authority for appeals in sporting disputes, including those involving sporting succession and debt inheritance.


● FIFA Dispute Resolution Chamber (DRC): Handles disputes related to player contracts and club debts, often deciding on sporting succession cases.


● FIFA Disciplinary Committee: Imposes sanctions on clubs that violate regulations, including attempts to evade debts through re-incorporation.


These bodies ensure FIFA’s rules are applied consistently and provide legal clarity for clubs, creditors, and players.



Impact on Fans and the Football Community

Bankruptcy and sporting succession impact more than finances and legal matters. Fans often face emotional and social consequences when their club is dissolved or reformed.


New clubs may find it challenging to maintain fan loyalty, especially if they inherit debts and face sanctions. However, sporting succession can also provide an opportunity for renewal and continuity, preserving local football culture.


Football authorities must balance financial discipline with the social significance of clubs within their communities. In practice, this can involve measures such as allowing reformed clubs to repay debts in installments over a set period, rather than demanding immediate full repayment. Authorities might also encourage community engagement initiatives, such as formal consultations with fan groups or structured support for local outreach programs, to maintain strong social ties while upholding financial accountability. These approaches aim to ensure that financial rules are observed without undermining the important cultural and social roles that clubs play in their communities. (FIFA Annual Report 2021: Football Governance, 2021)



Complex Consequences of Club Bankruptcies

Club bankruptcies create a series of effects across legal, economic, sporting, and social dimensions:


● Legal: Complex bankruptcy laws intersect with FIFA regulations, requiring careful navigation of debt inheritance and sporting rights.


● Economic: Financial instability can lead to loss of sponsorships, reduced revenues, and challenges in attracting players.


● Sporting: New clubs may face relegation, transfer bans, or point deductions, affecting competitive balance.


● Social: Fans and local communities may lose a key cultural institution, impacting identity and social cohesion.


Understanding these factors is essential for stakeholders managing sporting succession cases.



References


(March 6, 2022). FIFPRO denounces inconsistent CAS jurisprudence on sporting succession. FIFPRO.


(2025). Sporting Succession: Comparative Analysis of CAS 2023/A/9807 and CAS 2024/A/10431. Football Legal.


Özkurt, E. (2021). Liability Arising From Sporting Succession – Review in accordance with FIFA Regulations and CAS Decisions. Football Legal.


(n.d.). FIFA Integrity. FIFA Integrity. https://legal.fifa.com/legal/integrity


Warshaw, A. (June 2, 2012). AEK Athens expelled from Europa League over debt crisis. Inside World Football.


Weger, F. d. (2016). The Jurisprudence of the FIFA Dispute Resolution Chamber. T.M.C. Asser Press.


Vieli, W. (March 6, 2026). Bulgarian Football Union Wins Appeals Against FIFA CAS Awards. Chambers and Partners.


(July 14, 2020). Sporting Succession: CAS 2019/A/6461 Tartu Jalgpallikool Tammeka v. FIFA. Football Legal.


(December 3, 2014). Steaua București football records dispute. High Court of Cassation and Justice ruling.


Gladwell, B. (March 19, 2015). Parma FC declared bankrupt, debts estimated at €218 million. ESPN.


(August 24, 2011). CAS 2011/A/2476 Fotbal Club Timisoara SA v. UEFA. Football Legal.


(2021). FIFA Annual Report 2021: Football Governance. FIFA Publications.

 
 
 
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