Soccer Law and Business Journal

Droylsden Lose FA Cup Ban Appeal

Blue Square North outfit Droylsden FC has been banned from further participation in this season's FA Cup following its unsuccessful appeal to the FA's Protest Sub-Committee.  The ban was imposed for Droylsden's having fielded an ineligible player -- Sean Newton -- in the previous round.  In that match, Droylsden defeated League Two side Chesterfield 2-1, with both goals having been scored by Newton, who was ineligible due to having picked up his 5th yellow card of the season.

Chesterfield will now advance in place of Droylsden, and will take on Ipswich Town in the next round.

Preston North End Chief Makes Renewed Call for Salary Cap

Preston North End chairman David Shaw echoed the ongoing call for a salary cap throughout the English Football League.   Shaw added, "At Preston our wage bill has increased by £1million per year for the past four or five years... If you don't pay the wages, you will get relegated from the Championship..." 

Shaw's sentiments are similar to those expressed by owners in the NBA and the NFL, when salary caps were being proposed there.  Evidently, team owners simply cannot, of their own accord, stop themselves from spending more money on wages than what their budgets allow.  Only through a league-wide salary cap can accountants, executives and club officials teach themselves how to spend less money than the club earns.  Or so the argument goes.

CAS: May Hear West Ham Appeal After All

Despite CAS' recent pronouncement that it lacked jurisdiction to hear West Ham's appeal in the Carlos Tevez matter, CAS announced today that it has opened an arbitration proceeding in the case.

CAS will decide, as a threshold matter, whether or not it does in fact have jurisdiction to hear the case.  A statement from CAS read: "The CAS has initiated an arbitration procedure and will first examine its jurisdiction as a preliminary issue after both clubs have had the opportunity to file written submissions on this point.  For the moment, no decision has been made with respect to the holding of a hearing.  In any event, a decision on jurisdiction is not to be expected before the end of November 2008. "

West Ham argues that the England FA rules, under which the FA arbitration panel ruled against it in the matter, would violate FIFA statutes if they do not permit appeal to CAS.

Sheffield United, in opposition, argue that CAS has previously held that it lacked jurisdiction in a prior case decided under FA rules.

Dubai-Based Group Denies West Ham Interest

Dubai-based investment group Zabeel Investments has denied a report linking it with the purchase of West Ham. 

West Ham are thought to be in dire financial straits following the global financial crisis, in which club owner Bjorgolfur Gudmundsson lost a significant portion of his fortune while his bank, Landsbanki, was taken over by the Icelandic government. 

However, Zabeel maintains that it is committed to purchasing Championship side Charlton Athletic, for which it launched a bid last Friday. 

West Ham Bill Could Rise to £50million in Sheffield United Flap

ESPN Soccernet is reporting that the damage claim in Sheffield United's case against West Ham could reach £50million. 

This figure is considerably higher than the £30million that was originally believed to have been sought.  The original figure was based simply on one season's worth of revenue losses resulting from Sheffield United's relegation following the 2006-07 season.  But it is believed that Sheffield United might now claim that, had it stayed up, it might have had yet another season in the Premiership and earned even more revenue. 

Although speculative in nature, the claim is not entirely implausible, given the struggles that relegated clubs have had not only with coming back to the Premiership, but with suffering multiple relegations, as has been the case with clubs such as Leeds and Leicester City.

Crystal Palace Fined Over Transfer

The English FA has announced that both Crystal Palace FC and agent Faisal Kashmiri have each been fined £25,000 by the Football Association's Regulatory Committee in connection with the transfer of Australian international midfielder Nick Carle.  In addition, Kasmiri has been suspended for the January 2009 transfer window.

Kashmiri is charged with acting for two different clubs on consecutive transfers of the same player, a violation of the FA's Football Agent Regulations.  Kashmiri is said to have been involved in Carle's move from Turkish club Genclerbirligi to Bristol City, then again when Carle was transferred from Bristol City to Palace.  Palace is charged with using the services of an agent during such a transaction, a charge the club has admitted.