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WORLD IN REVIEW                                                                                                                                                                                                                                                                                                    WORLD IN REVIEW
    International - CAF                                                                                                                                                                                                                                                                                           International - CAF


Confédération Africaine de Football and Governance                                                                                                                      The democratic functioning of an                                Regular renewal of management                                   Efforts still need to be made, particularly
                                                                                                                                                                        institution is one of the main good                             teams                                                           in the field of transparency, such as:
                                                                                                        By Joëlle Monlouis                                              practices of governance and CAF has
                                                                                                        Lawyer, Monlouis Lawfirm                                        a fairly comprehensive arsenal in this                          The CAF recently added a limitation                             ➥➥ “Reporting” the use of funds
                                                                                                        Paris - France                                                  area.                                                           on the number of terms of office of                                collected to avoid any form of
                                                                                                        & Nasr El Din Azzam                                                                                                                                                                                opacity in its functioning;
                                                                                                        Lawyer, Sport Makers                                                                                                            the President and members of the
                                                                                                        Cairo - Egypt                                                                                                                   Executive Committee who can “not
                                                                                                                                                                        A democratic election                                           be elected for more than three terms                            ➥➥ Declaring the income of the
                                                                                                        ➔➔ Confederation of African Football (CAF) –                                                                                    (whether consecutive or not)”15allowing                            directors.
                                                                                                           Governance
                                                                                                                                                                        The election of the President and the                           for a regular renewal of the directors.
                                                                                                                                                                        members of the Executive Committee                                                                                              From the first day of his presidential
                                                                                                                                                                        of the CAF complies with the principles                         Indeed, before this proposal, CAF found                         campaign, Mr Ahmad revealed his vision
                                                                                                                                                                        of      “representative   democracy”9,                          itself headed by the same President                             that will be based mainly on the positive
                                                                                                                                                                        i.e. the elective process allows the                            for seven consecutive terms. Such a                             change in favor of African football;
                                                                                                                                                                        independence of the institution.                                measure will make it possible to avoid                          he clearly announced that he will
                                                                                                                                                                                                                                        such longevity for the benefit of the                           focus on some main points including:
                                                                                                        On 16 March 2017, Ahmad Ahmad of                                Indeed, according to this process,                              institution and its credibility.                                governance, transparency and the
                                                                                                        Madagascar delivered a speech after                             elections are held by secret ballot;10each                                                                                      system of the African competitions.
                                                                                                        being elected as the new President of the                       member is entitled to vote;11a quorum                           However, it is stated that “the previous
                                                                                                        Confederation of African Football (CAF) during                  equal to 2/3 of the members is required                         terms served as Vice-President or as a                          Regarding the system of the African
                                                                                                        the 39th CAF General Assembly in Addis Ababa                    for the validity of the deliberations;12and                     member of the Executive Committee                               football championships, Mr Ahmad
                                                                                                        (Ethiopia).                                                     the election is won by an absolute                              shall not be considered in determining                          has promised to open a discussion
                                                                                                                                                                        majority of the expressed votes.13                              the term limits of a President.”16This                          about increasing the number of teams
                                                                                                                                                                                                                                        addition results in a substantial breach                        participating in the CAN as well as
A brief review of the birth of                               Concerning Football, it is during the           practice of this sport on the continent.                   This democratic process is working                              of equality between the ongoing                                 the timing of the CAN, as the current
the Confederation                                            crisis experienced by FIFA in recent                                                                       and has played its part in the change                           mandates - some of them dating back                             timing conflicts with the European
                                                             years - as a result of corruption               The CAF is built around its main bodies                    of presidency on 16 March 2017                                  more than three terms - and new                                 leagues that have a significant number
At the 29th Congress of the Fédération                       problems - that governance and good             that are:                                                  in Addis Ababa, Ethiopia, where                                 mandates.                                                       of African players.
Internationale of Football Association                       governance practices have been                                                                             Mr Ahmad Ahmad took over from
(FIFA) held in Berne in 1954, on the                         remembered.                                     ➥➥ The President who is “the legal                         Mr Issa Hayatou, a candidate for his                                                                                            At every competition - especially the
sidelines of the 5th World Cup, FIFA                                                                            representative of CAF”;3                                own re-election, a position he held for                                                                                         African Cup of Nations - we hear about
“admits in its statutes that national                        We could define such practices as the                                                                      almost 30 years.                                                Governance issues for                                           players that refuse to join their national
associations that belong to the                              use or creation of tools and organs             ➥➥ The Executive Committee which is                                                                                        Mr Ahmad                                                        teams, or European clubs that complain
same continent can be grouped into                           that will allow the optimal functioning            “responsible for implementing the                       This change was made smoothly and                                                                                               about their sporting loss when their
confederations which will be recognized                      of the institution but also the good               policies and decisions of the General                   only through the ballot box.                                    The CAF, in line with FIFA’s guidelines17,                      African players participate in the CAN.
by international bodies.”1                                   behaviors that its leaders must adopt.             Assembly and the management and                                                                                         has fully understood and integrated the                         In the 2017 CAN, seven Cameroonian
                                                                                                                the administration of CAF”;4
                                                                                                                                                                        However, “any candidate to the elections                        governance issue and is committed “to                           players declined call ups for the
The African countries members of FIFA,                       The challenges of these good                    ➥➥ The General Assembly which is                           for the presidency of the Confédération                         comply at any times with the principles                         Cameroon national team, including
that are Egypt, Sudan, Ethiopia and                          governance        practices     include            “the supreme authority of CAF and                       Africaine de Football, in addition to                           of good governance, integrity and                               Joel Matip who was playing for Liverpool.
South Africa, decided to create the                          optimizing the effectiveness of the                shall define the general policy and                     possessing the required skills, must be or                      sportsmanship (...).”18
first pan-African institution in history:                    institution’s operations both internally           implementation of the relevant                          have been a member of the CAF Executive                                                                                         Mr Ahmad is also willing to change the
                                                                                                                decisions”;5
Confédération Africaine de Football                          and externally, creating value for the                                                                     Committee.”14This statutory addition,                           The new President of the CAF,                                   mechanism of choosing the organizing
(CAF). This birth would take place in                        benefit of the institution, which is the        ➥➥ The CAF Secretariat “perform all                        which took place in September 2012,                             Mr Ahmad Ahmad, takes the reins of an                           countries for the CAN. He has a great
Khartoum (Sudan) in February 1957.                           responsibility of both the institution             administrative duties under the                         six months before the elections of                              institution in demand of change and                             objection on the current mechanism,
                                                             and its leaders.                                   direction of the Secretary General”;6                   March 2013, led to the ineligibility of the                     whose governance will have to be                                as it was already decided by the
On 10 February 1957, after the CAF                                                                                                                                      candidature of the only candidate who                           further improved and accompany his                              CAF Executive Committee that the
constitutive assembly, the first African                                                                     ➥➥ Legal bodies;7                                          opposed the outgoing President, thus                            development to bring African Football                           upcoming three African Cup of Nations
Cup of Nations (CAN) was held in the                                                                                                                                    restricting access to the Presidency.                           even higher.                                                    will be organized by the following
Sudanese capital.2                                           The functioning of CAF with                     ➥➥ Standing Committees.8                                                                                                                                                                   countries: 2019 will be in Cameroon,
                                                             regard to governance                                                                                       9    Art. 18 of the Statutes of CAF - Elections, requisite
                                                                                                                                                                                                                                        15   Art. 22.9 b of the Statutes of CAF - Composition of the
                                                                                                                                                                                                                                             Executive Committee
                                                                                                                                                                                                                                                                                                        2021 in Ivory Coast and 2023 in Guinea.
The governance of institutions                                                                                                                                               majority, voting                                           16   Art. 22.9 c of the Statutes of CAF - Composition of the    This reflects a sort of injustice as the
(including sports) is a subject that                         The CAF is one of the six Confederations                                                                   10   Art. 18.1 of the Statutes of CAF - Elections, requisite         Executive Committee                                        three countries are geographically
                                                                                                             3   Art. 24 of the Statutes of CAF - President                  majority, voting                                           17   Art. 23 of the Statutes of FIFA - Confederation’s
provokes numerous articles.                                  affiliated to FIFA. It organizes its own        4   Art. 23 of the Statutes of CAF - Prerogatives of the   11   Art. 6.1 of the Statutes of CAF - Members’ Rights               Statutes: “The confederations’ Statutes must comply        close, meaning that just one African
                                                             competitions at the level of national               Executive Committee                                    12   Art. 17.15 of the Statutes of CAF - General Assembly            with the principles of good governance, and shall in       region will benefit from hosting
                                                                                                             5   Art. 17 of the Statutes of CAF - General Assembly      13   Art. 18.11 of the Statutes of CAF - Elections, requisite        particular contain, at a minimum, provisions relating to
1    Éléments Géopolitiques du Sport Africain, J.-P.         clubs and selections in Africa and,             6   Art. 25 of the Statutes of CAF - CAF Secretariat            majority, voting                                                the following matters (...).”                              upcoming editions.
     Augustin, Les Cahiers de l’Outre-Mer, Avril-Juin 2010   through its action, helps to improve the        7   Art. 48 of the Statutes of CAF - Legal bodies          14   Art. 18.3 of the Statutes of CAF - Elections, requisite    18   Art. 2.2 of the Statutes of CAF - Objectives and
2    www.cafonline.com                                                                                       8   Art. 28 and following of the Statutes of CAF                majority, voting                                                Principles




    240         Football Legal                                                                                                                                                                                                                                                                                   Football Legal            241
WORLD IN REVIEW                                                                                                                                                                                                                        WORLD IN REVIEW
     International - CAF                                                                                                                                                                                                              International - CAF


If we look at the previous CAN editions,                        Therefore, Mr Ahmad seeks a significant   CAF Under the Spotlight of Competition Authorities1
they were as following: the 2017 CAN                            transparency, as he promised to review
was in Gabon, 2015 was scheduled to                             all contracts signed by CAF including                                                                                                               By Abdallah Y. El Shehaby2
be in Morocco, but they refused to host                         the broadcasting rights. He also                                                                                                                    Attorney-at-law, Partner, Rizkana & Partners
it because of Ebola concerns then it was                        promised to add the transparency in all                                                                                                             Cairo - Egypt
moved to Equatorial Guinea, 2013 was                            transactions of CAF.
hosted by South Africa who replaced                                                                                                                                                                                 ➔➔ Confederation of African Football (CAF) –
the tournaments with Libya because                                                                                                                                                                                     Broadcasting rights – Competition law
of the civil war in Libya, 2012 was
co-hosted by Gabon and Equatorial                                                                                                                                                                                       Egyptian Competition Authority, 3 January 2017
Guinea before CAF decided to switch
the CAN to be held in odd years.
                                                                                                                                                                                                          16 March 2017 marks the start of a new era for
It is obvious that most of the 7 CANs                                                                                                                                                                     the Confederation of African Football (CAF).
between 2012 and 2023 are hosted or                                                                                                                                                                       After almost three decades of the reign of the
going to be hosted by countries located                                                                                                                                                                   former CAF President, Issa Hayatou (picture),
in only one region, despite Africa                                                                                                                                                                        CAF General Assembly elected a new President,
being a vast continent with almost                                                                                                                                                                        Ahmad, and a quasi-new formation of CAF’s
56 countries which are divided into six                                                                   Executive Committee. The election of the New President is widely welcomed and received with high hopes and is seen as part of the wind
zonal unions19 that requires a fair and                                                                   of change that has redrawn the international football picture. CAF’s new Administration under the leadership of the New President, Ahmad,
justice mechanism in distribution of                                                                      starts its mandate with a heavy legal heritage. CAF is facing antitrust charges in Egypt, its host country, as well as an antitrust investigation
the tournaments on all the zones.                                                                         on the COMESA level.3 CAF is additionally subject to investigation by the Egyptian Public Funds Prosecutor - for the same incident - but for
                                                                                                          suspicions of waste of public funds.4
Therefore, Mr Ahmad’s vision regarding
this important matter is based mainly
on the latest reforms by FIFA in                                                                          Egyptian Antitrust                                          The      PPCFA       has   started     the          The ECA and the PPCFA have
deciding the hosting country to the                                                                       Proceedings                                                 investigations and the interrogations               concluded that CAF is a monopoly with
World Cup. He is in favor of the decision                                                                                                                             on 28 February 2017, has pressed                    100% market share of the market of
of choosing hosting country for the                                                                       On 20 December 2016, an Egyptian                            charges and referred the matter to the              “production and distribution of the media
CAN must be made by a majority of                                                                         company,        Presentation      Sports,                   Cairo Economic Court on 7 March 2017.               content related to CAF’s championships”
votes in the CAF Congress, not solely by                                                                  submitted a complaint to the Egyptian                       It is remarkable how swiftly the                    (the “Relevant Market”).5 The ECA and
the CAF Executive Committee.                                                                              Competition Authority (ECA) against                         investigations were concluded in                    PPCFA have further concluded that CAF
                                                                                                          CAF for allegations of abuse of                             an unprecedented manner: the ECA                    has abused its dominant position when
The current mechanism of choosing                                                                         dominance. Based on such, on 3 January                      referred the matter to the PPCFA in less            it, allegedly, “sold” all the commercial
the CAN hosting countries is stipulated                                                                   2017, the ECA has referred CAF’s former                     than 10 working days and the PPCFA - in             rights related to its championships
in the Statutes of CAF, and gives                                                                         president, Issa Hayatou, and the former                     its turn - referred the matter to the Cairo         worldwide on an exclusive basis for
the right of deciding the place and                                                                       Secretary General of CAF, Hicham                            Economic Courts in less than 5 working              12 years to a French company, Lagardère
dates of the final tournaments of the                                                                     Al Amrani, to the Public Prosecutor                         days, i.e. an overall investigation                 Sports, in consideration of USD 1 billion
CAF competitions exclusively to the                                                                       - Department of Commercial and                              period of less than 15 working days.                (approx. EUR 920 million) and rejecting
Executive Committee.20                                                                                    Financial Affairs (PPCFA), to investigate                   It was equally remarkable how the                   an offer from Presentation Sports
                                                                                                          the alleged violation of CAF of the                         ECA and the PPCFA have concluded                    amounting to USD 1.2 billion (approx.
Mr Ahmad always confirms his desire                                                                       Egyptian Competition Law no. 3/2005                         their investigations without allowing               EUR 1.1 billion).
to improve CAF’s governance, his                                                                          as amended.                                                 CAF’s legal representatives, i.e. the
ambition to create an infrastructure                                                                                                                                  President or the Secretary General,                 According to the ECA, “selling” to
that suits African football and his                                                                                                                                   the opportunity to be heard or to                   Lagardère Sports without launching a
will to avoid creating White Elephant                                                                                                                                 comment on the complaint submitted                  tender process includes four aspects
stadiums.                                                                                                                                                             by Presentation Sports against CAF.                 of abuse of dominance: discrimination,
                                                                                                          1   This article contains no confidential information and   The investigation bodies always allow               refusal to deal, market foreclosure and
                                                                                                              is based only on publicly available data. It presents
                                                                                                              only the views and opinions of the author. CAF and      themselves the chance to hear all the               tying. Such, in the view of the ECA, has
                                                                                                              Rizkana & Partners do not necessarily share the same    involved parties in order to make a more            resulted in the end customers, i.e. the
                                                                                                              views and opinions.
                                                                                                          2   The author is Doctorant at Paris I Panthéon Sorbonne    complete and clearer picture of the                 tele-spectators, paying more than
                                                                                                              University – “L’arbitrage et le Droit des affaires du   incident subject of the investigations.             they should normally pay to watch the
                                                                                                              sport”.
                                                                                                          3   The Common Market for Eastern and Southern Africa       This is in sight of a more accurate                 African football matches.
                                                                                                          4   The Public Prosecutor considered that the funds         conclusion and in respect of the basic
                                                                                                              of CAF are Egyptian public funds that should be
19    Art. 13 of the Statutes of CAF - Zonal Unions                                                           protected as same based on the fact the Egyptian        rights of defense of the juridical person
20    Art. 23.17 of the Statutes of CAF -_Prerogatives of the                                                 Football Association pay a membership fee of            under investigation.                                5   This is the market definition according to the ECA’s
      Executive Committee                                                                                     approximately USD 500 (approx. EUR 460) per annum.                                                              decision dated 3 January 2017.




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