Sports Arbitration & Dispute Resolution In Nigeria: What You Need To Know

Introduction

The world of sports is filled with high-stakes competitions, lucrative sponsorships, and complex contractual agreements. With so much on the line, disputes are inevitable. In Nigeria, sports arbitration and dispute resolution play a crucial role in resolving conflicts and ensuring that the sports industry operates smoothly. This article provides an overview of the key aspects of sports arbitration and dispute resolution in Nigeria, including the Court of Arbitration for Sport (CAS), the regulatory framework for sports in Nigeria, and the role of the Nigeria Football Federation's Player Status and Arbitration Committee (PSAC). We'll also explore the relevant provisions of the Arbitration and Mediation Act (AMA) and how they impact sports arbitration in Nigeria. Whether you're an athlete, coach, or sports administrator, understanding the ins and outs of sports arbitration and dispute resolution is essential for navigating the complex world of sports.

Regulatory Framework for Sports in Nigeria

Nigeria's sports regulatory framework is a multi-faceted structure designed to promote and regulate sports development in the country.

1. Ministry of Youth and Sports Development: As the government body responsible for sports, it formulates policies to guide sports development, provides guidance and oversight to ensure effective implementation and oversees sports-related activities nationwide
2. National Sports Commission (NSC): The NSC plays a crucial role in regulating sports to ensure compliance with rules and regulations, promoting sports development through various initiatives and coordinating national sports events to showcase talent and promote unity.¹
3. Sports Federations: These governing bodies are responsible for organizing and regulating specific sports at the national level, developing rules and guidelines for their respective sports and handling disciplinary matters and coordinating national team selections. Examples of sports federations in Nigeria include: Nigerian Football Federation (NFF), Athletics Federation of Nigeria (AFN), Nigeria Basketball Federation (NBBF) and Nigeria Tennis Federation (NTF)
4. National Institute for Sports (NIS): The NIS provides training and development programs for coaches, administrators, and athletes, opportunities for skills enhancement and knowledge acquisition and support for capacity building in sports.²
5. National Sports Policy: This policy serves as a guiding document for sports development in Nigeria, outlining: strategies for promoting sports development, objectives for talent identification, sports science, athlete welfare, and infrastructure development, and guidelines for effective implementation and monitoring.

By working together, these components aim to promote sports development, ensure compliance with regulations, and provide opportunities for athletes to excel in Nigeria.³

Dispute Resolution by the Nigeria Football Federation's Player Status and Arbitration Committee (PSAC)

The FIFA's Regulations on the Status and Transfer of Players (RSTP) have long recognized that instead of submitting employment-related disputes to FIFA or seeking redress before a civil court, parties may opt to submit such disputes to a national dispute resolution system, provided that it meets the minimum and fundamental procedural requirements. A national dispute resolution system for disputes between employees (players and/or coaches) and employers (clubs) is known as a national dispute resolution chamber (NDRC).⁴

I. Required Standards for a National Dispute Resolution system to be recognized to by FIFA

To gain recognition from FIFA, a national dispute resolution system, typically known as a National Dispute Resolution Chamber (NDRC), must fulfill specific requirements.

1. Establishment by Member Association: The NDRC must be established by the relevant member association (e.g., a national football federation) as a formal body for resolving disputes. The member association can choose a different name for the body, but its purpose and function should align with the NDRC framework.
2. Recognition in Statutes: The NDRC or its equivalent must be officially recognized in the statutes of the member association. This ensures that the NDRC's role and authority are formally acknowledged and integrated into the governance structure of the association.

• Compliance with FIFA Principles and Regulations: The NDRC must comply with FIFA's National Dispute Resolution Chamber Recognition Principles and the Standard Regulations annexed to these principles. These guidelines set out the procedural and substantive requirements for the NDRC to ensure fairness, consistency, and transparency in resolving disputes.

1. Publication of Regulations and Decisions: The NDRC is required to publish its applicable regulations, procedural rules, and decisions. This promotes transparency and accountability. However, decisions may be subject to redactions to protect sensitive information or maintain confidentiality where necessary.

By meeting these criteria, an NDRC can ensure that it operates in a manner consistent with FIFA's expectations, providing a fair and effective mechanism for resolving disputes related to players, coaches, and clubs within the national football context. This recognition enables the NDRC to handle disputes that might otherwise be addressed by FIFA's dispute resolution bodies or national courts.⁵

1. Status of the Nigeria Football Federation' Player Status and Arbitration Committee (PSAC)

The Nigeria Football Federation (NFF) has established the Player Status and Arbitration Committee (PSAC) to handle disputes related to player status, transfers, and contractual obligations between players and clubs.

Key Features of the PSAC

1. Responsibilities: The PSAC is responsible for deciding on employment-related disputes, reviewing evidence, hearing from parties, and issuing binding decisions.
2. Enforceability: The PSAC's rulings are enforceable within Nigerian football, ensuring that decisions are implemented and respected by clubs and players.

• Appeal Structure: Decisions made by the PSAC can be appealed directly to the Court of Arbitration for Sport (CAS) in Switzerland, providing a clear and established pathway for resolving disputes at the international level.

While the PSAC currently serves as a de facto National Dispute Resolution Chamber (NDRC), its ad hoc nature means it only convenes when disputes arise. This can lead to limitations in terms of consistency and accessibility.

The PSAC plays a crucial role in resolving player-club disputes in Nigeria, delivering binding decisions that meet national and international standards. While it currently serves as a de facto NDRC, establishing a permanent, statutory NDRC would further strengthen the governance of football in Nigeria, providing continuous access to justice, transparency, and consistency for players and clubs alike.⁶

Relevant provisions of the Arbitration and Mediation Act 2023 to Sports Arbitration in Nigeria

The Arbitration and Mediation Act (AMA) provides several key provisions that are particularly relevant to the sports industry.

1. Enforcement of Arbitration Agreements: The AMA enforces arbitration agreements, even if they are not explicitly written, as long as there is evidence of the agreement in any form, including electronic communication. This flexibility is beneficial for sports contracts and agreements, which are often conducted electronically.
2. Third-Party Funding: The AMA allows third-party funding for arbitration, enabling external support for disputing parties. This is particularly beneficial for athletes and local sports bodies with limited financial resources, as it enables them to access justice and pursue their claims without being hindered by financial constraints.
3. Interim Measures: Arbitral tribunals can make interim orders to protect parties' urgent interests during arbitration proceedings. This is crucial in sports, where time-sensitive decisions are often necessary, such as ensuring an athlete's participation in a major event or preventing a club from taking action that could harm a player's career.
4. Electronic Communications: The AMA recognizes electronic formats, such as email and social media, as valid means of communication and agreement. This facilitates virtual proceedings and agreements, making it easier for parties to enter into arbitration agreements, conclude third-party sponsorships, and conduct virtual proceedings without the need for physical contact.
5. Stay of Proceedings: Courts must stay proceedings when a valid arbitration agreement exists, except in cases where the agreement is void or inoperative. This ensures that disputes are resolved through arbitration, as agreed upon by the parties, rather than through the courts.

The AMA provides a framework for resolving sports-related disputes that is flexible, supportive, and efficient, addressing the unique needs of the industry.⁷

The Court of Arbitration for Sport (CAS)

The Court of Arbitration for Sport (CAS) mirrors the Nigerian court system in its structure, where cases typically originate in a lower division and may be appealed to a higher division. The CAS is comprised of three main divisions:

1. The Ordinary Arbitration Division: handles first-instance commercial disputes between sporting stakeholders, focusing on disputes that are financial or contractual in nature, rather than disciplinary or regulatory issues within a specific sport.
2. The Anti-Doping Division: hears first-instance anti-doping cases
3. The Appeals Arbitration Division:As the name suggests, this division serves as the court's final authority, hearing appeals from initial decisions made by sports governing bodies and acting as an appellate body to review and adjudicate on those decisions.⁸ It hears appeals from bodies such as
4. Federation of International Football Association (FIFA)

The Federation of International Football Association (FIFA) is a common source of disputes before the CAS, particularly appeals from FIFA's Internal Judicial System decisions. These disputes often involve contract terminations, player transfers, and related compensation issues between clubs.

1. World Anti-Doping Agency

The World Anti-Doping Code 2021 mandates sanctions for athletes who use prohibited substances, including disqualification of results and forfeiture of medals, points, and prizes. The Court of Arbitration for Sport (CAS) has sole authority to hear appeals related to these anti-doping rule violations.

Scope of disputes governed by the court of arbitration for sports

The Court of Arbitration for Sport (CAS) has a wide-ranging jurisdiction, covering various types of disputes in the sports industry, including:

1. Commercial Disagreements: Disputes related to sponsorship deals, endorsements, and other business arrangements.
2. Contractual Issues: Conflicts arising from contracts between athletes, clubs, sponsors, and other parties.
3. Doping Allegations: Cases involving athletes accused of violating anti-doping regulations.
4. Sanctions Imposed by Governing Bodies: Disputes related to penalties, fines, or other disciplinary actions imposed by sports governing bodies, such as FIFA or the International Olympic Committee (IOC).

The following parties can bring disputes before the CAS, Individual Athletes, Clubs, Sports Federations, Sponsors and Media Companies. By providing a platform for resolving sports-related disputes, the CAS helps to maintain fairness, stability, and order in the sports industry.⁹

Conclusion

Sports arbitration and dispute resolution play a vital role in the sports industry, providing a framework for resolving disputes in a fair, efficient, and effective manner. The Court of Arbitration for Sport (CAS) is a key institution in this regard, offering a platform for resolving sports-related disputes at the international level. In Nigeria, the regulatory framework for sports is multi-faceted, with various components working together to promote sports development and ensure compliance with regulations. The Nigeria Football Federation's Player Status and Arbitration Committee (PSAC) is a crucial mechanism for resolving player-club disputes, and the Arbitration and Mediation Act (AMA) provides a supportive framework for sports arbitration. By understanding the intricacies of sports arbitration and dispute resolution, stakeholders in the sports industry can navigate disputes effectively and ensure that the industry continues to thrive. With so much on the line and clarity that disputes are inevitable in sports, it highly important that experienced sports Attorneys are consulted when considering sports arbitration and dispute resolution in resolving conflicts and ensuring that the sports business operates smoothly.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.