By Eurohoops team/ info@eurohoops.net
In 2004, FIBA Europe and ULEB signed a commercial agreement regarding the governing and organization of the European club competitions. Since 2010, EuroLeague properties had assumed the obligation of ULEB to pay an annual fee of 400.000 to FIBA Europe. EuroLeague properties terminated that agreement on December 2012 invoking the calendar change announced that FIBA it would take place from 2017 and onwards.
Now the Luxembourg Commercial Court issued a favorable ruling for FIBA Europe amidst the long standing dispute with EuroLeague Basketball.
As reported by El Pais, EuroLeague Properties is called to pay the sum of €900.000 to FIBA Europe, plus interest, plus an additional compensation fee of €1,500 and take care of all the costs of the trial procedures.
In the decision of the Court (open to an appeal from both parties) there’s the conclusion that the contract that was signed between FIBA Europe and EuroLeague Properties expired on January 2015. The fee that must be disbursed to FIBA covers the period between 2012 and 2015 while all commission following 2015 aren’t taken into account.
The Court also decided that the introduction of the new FIBA Calendar doesn’t consist a contract breach from the side of FIBA Europe. This was the case made by EuroLeague Properties for declining to pay the fee from 2012 to 2015.
UPDATE: FIBA confirmed the ruling of the Luxembourg Court with the following announcement:
In response to media inquiries, FIBA Europe confirms that on Friday June 16 it received the ruling of the Luxembourg Commercial Court, ordering Euroleague Properties SA, a subsidiary of Euroleague Commercial Assets SA, to pay FIBA Europe €900,000 plus interest, an indemnification of €1,500 and to bear all costs of the proceedings.
In its decision, which may be appealed by either party, the Court found that the contract between FIBA Europe and Euroleague Properties came to an end in January 2015; the fees awarded in favor of FIBA Europe cover the period between 2012 and 2015, while no fees are due after that date.
The Court also held that the introduction of the new FIBA calendar did not represent a breach of contract by FIBA Europe, although this was the stated reason for Euroleague Properties’ decision to refuse payment between 2012 and 2015.