In its statement, CAS indicated that its panel of judges thoroughly examined the evidence, including the trust established by León's owners. The court concluded that this trust arrangement was "insufficient to comply with the regulations" set forth by FIFA regarding multi-club ownership.
León responded to the ruling with a statement expressing strong criticism of FIFA and alluding to "very influential" opponents. The club stated that their "fans and players deserved more respect from an organization dedicated to promoting sports," asserting that "from the beginning no sporting principles existed in the case."
The swift ruling from CAS, delivered just one day after the appeal hearing in Lausanne, Switzerland, now clears the way for FIFA to finalize plans for a playoff match. This decisive game will pit Los Angeles FC (LAFC) against fellow Mexican side América to determine the final participant in the Club World Cup, which kicks off on June 14 in Miami.
FIFA confirmed on Tuesday that it had yet to set a date and venue for the high-stakes playoff. The winner of this match will be guaranteed a significant financial windfall, with almost $10 million in prize money at stake from the tournament's total prize pool of $1 billion.
The legal wrangling in Switzerland unfolded five months after FIFA had initially allowed León to be included in the tournament draw in Miami, despite the unresolved issue of multi-club ownership. León had been drawn into a group alongside Chelsea, to play in Atlanta on June 16, followed by matches against Esperance of Tunisia in Nashville and Flamengo of Brazil in Orlando. These group stage fixtures will now feature either LAFC or América in place of León.
FIFA's Club Ownership Regulations
FIFA's newly implemented regulations aim to safeguard the integrity of its revamped and prestigious club tournament by prohibiting the participation of two or more teams under the same ownership group. This standard has been a long-standing rule in UEFA-organized European competitions for over two decades, with ownership conflicts typically resolved through management restructuring at one of the involved clubs, often by placing it into a blind trust.
León and Pachuca secured their spots in the Club World Cup by winning the 2023 and 2024 editions of the CONCACAF Champions League, respectively. The owner of both clubs, Grupo Pachuca, had stated its willingness to sell one of the teams to comply with FIFA's regulations but maintained that doing so before the tournament's commencement was not feasible.
Following a decision by FIFA officials to exclude León, FIFA's appeal judges formally upheld this exclusion in March, citing non-compliance with the governing rules. During a previous appeal hearing at FIFA, León had argued that FIFA "should follow in the footsteps of UEFA and permit the implementation of a trust as a solution to the issue of multi-club ownership." However, FIFA's legal team countered that despite the intentions of León's owners, they had not achieved full compliance with the rules by the time they signed the Club World Cup entry agreement in February.
A separate, albeit unlikely, appeal to CAS by Costa Rican club Alajuelense to take León's place was also dismissed by the court on Tuesday, being incorporated into the overall case.
Late Playoff Decider
FIFA had previously indicated that LAFC would participate in the playoff due to their status as the runner-up to León in the 2023 CONCACAF Champions League. FIFA justified América's inclusion as the next-highest-ranked team in the Club World Cup confederation ranking.
However, the eligibility of América, one of Mexico's most popular clubs, had raised questions, given FIFA's rule generally capping each country at two entries unless it has more than two winners of a continental championship within the qualifying period.
The coveted entry that was the subject of the legal dispute carries an initial payment of $9.55 million from FIFA for a CONCACAF team, in addition to a share of the $1 billion total prize money based on their performance throughout the month-long tournament, which will be hosted across 11 U.S. cities.
European Dominance and Notable Absences
The lion's share of the prize money is expected to be claimed by the 12 qualified European teams, including recent Champions League winners Real Madrid, Manchester City, and Chelsea, as well as Paris Saint-Germain and Bayern Munich. Notably absent from the European contingent are the newly crowned champions of England, Liverpool, and the current league leaders in Spain and Italy, Barcelona and Napoli.
The tournament lineup also includes Lionel Messi and his Inter Miami club, who received an invitation last October from FIFA President Gianni Infantino despite not winning a CONCACAF or Major League Soccer title. Seattle Sounders, the 2022 CONCACAF Champions League winner, will also be participating.
This expanded edition of the FIFA club tournament, now held every four years, has been heavily promoted by Infantino.