Rights agency loses first round in battle to hang on to CAF contract
CAF informed Lagardère of its plans to scrap the arrangement nine years early in November, a decision the agency said it would contest on the basis that it was ‘unlawful, unreasonable and unjustified’.
Among other things, Lagardère asked that CAF be ordered to immediately reinstate the contract, which was due to run from 2017 until 2028.
However, in a ruling announced on 13th December, the International Chamber of Commerce rejected an application for emergency measures lodged by Lagardère.
The agency has also been ordered to pay the administrative costs of the arbitration proceedings, as well as a further €60,000 (US$67,000) towards CAF legal costs.
In an official statement, CAF said it will continue to work with soccer’s global governing body FIFA ‘to stand up for the rights of football fans who want to be able to watch African football in their respective countries’, and to ‘safeguard the rights of genuine commercial partners who want to see a healthy, competitive and transparent football business environment in Africa.’
Since its requests were rejected, Lagardère has released a statement of its own, noting that the ruling relates only to emergency proceedings rather than its broader case against CAF.
The statement read: ‘The outcome of the emergency proceedings does not in any way predetermine the outcome of any future arbitration on the merits of the case.
‘Under these conditions, Lagardère will steadfastly continue as planned to proceed with the broader, more encompassing arbitration (arbitration on merits) to obtain compensation from CAF.
‘The Lagardère group deems the actions of CAF to be unwarranted and will take all action at its disposal to defend its interests, mitigate the impact of any immediate harm to its business and protect the interests of its shareholders.’
The deal between CAF and Lagardère, which covers tournaments such as the flagship Africa Cup of Nations and the CAF Champions League, has previously come under scrutiny from competition authorities.
In 2017, the Competition Commission of the Common Market for Eastern and Southern Africa (CCC) deemed that the contract infringed on its competition regulations, given that it had been agreed without the rights being made available in a formal tender. The CCC consequently recommended a financial penalty be imposed on CAF and that the agreement be terminated.
CAF is currently undergoing a major reform process after its beleaguered President Ahmad Ahmad ceded control of the governing body to FIFA amid allegations of corruption and sexual misconduct. Global professional services firm PricewaterhouseCoopers (PwC) is supporting the reform process, and is carrying out a general audit and overview of CAF.
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