1|Sports Dispute Resolution

The use of Alternative Dispute Resolution in the Sports Industry

Shlok Nanda

21212062, 5BALLBNCR

Christ (Deemed to be University), Delhi NCR

Dated: 19th August 2023

2|Sports Dispute Resolution

Abstract

The sports industry is a multi-billion-dollar industry that is constantly evolving. As a result,

disputes are inevitable. Traditional litigation can be time-consuming, expensive, and
adversarial, which can damage the reputation of the parties involved and disrupt the sports
industry. Alternative dispute resolution (ADR) is a more efficient and amicable way to resolve
disputes. ADR methods such as mediation, arbitration, and negotiation can help to parties reach
a mutually agreeable resolution in a timely and cost-effective manner.

This literature review will explore the different types of disputes that can arise in the sports
industry, the advantages and disadvantages of using ADR to resolve these disputes, and the
most common ADR methods used in the sports industry. The review will also discuss the
challenges of using ADR to resolve sports disputes and the best practices for using ADR in the
sports industry.

The review will conclude by discussing the future of ADR in the sports industry. ADR is
becoming increasingly popular in the sports industry, and it is likely to play an even more
important role in the future. ADR can help to resolve disputes quickly and efficiently, which
can help to protect the reputation of the sports industry and ensure that the games continue to
be played.

Introduction

Sports is a complex and ever-evolving industry, and controversy is inevitable. These

disputes may arise between athletes, coaches, teams, leagues, sponsors and other
stakeholders. These can include a variety of issues such as breach of contract,
allegations of doping, discrimination and injuries. Sports disputes can be resolved in a
number of different ways. One common approach is litigation, which involves taking
the matter to court. However, litigation can be expensive and time-consuming, and may
not be the best solution for all disputes. Alternative dispute resolution (ADR) is an
alternative to litigation. ADR is a broad term that includes various methods of resolving
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disputes outside the court system. Some of the more common out-of-court dispute
resolution procedures include arbitration, mediation, and negotiation.

Arbitration is a process where parties to a dispute agree to have a neutral third party,
called an arbitrator, resolve the dispute. The arbitrator makes a binding decision that is
enforceable in court. Mediation is a process in which parties to a dispute work with a
neutral third party, called a mediator, to reach a mutually satisfactory solution. The
mediator does not make a decision, but facilitates communication between the parties.
Negotiation is a process where parties in dispute discuss issues directly and try to reach
an agreement. Negotiations can be conducted with or without an intermediary. The
choice of dispute resolution method depends on the specific circumstances of the
dispute. Some of the factors to consider are the complexity of the dispute, the cost of
the process and the desired outcome.

In the sports industry, ADR is often considered a more effective and efficient way to
resolve disputes than litigation. ADR can be faster, cheaper and more confidential than
litigation. It can also be more flexible, allowing parties to tailor the process to their
needs. Several different ADR bodies specialize in the resolution of sports disputes. One
of the most famous is the Court of Arbitration for Sport (CAS). CAS is an independent
international body that deals with disputes around the world. It is considered the leading
authority on sports law.

Another well-known ADR body is the National Sports Arbitration Centre of India
(NSACI). NSACI is a non-profit organization founded in 2021. It provides a forum for
resolving sports disputes in India. The use of ADR in the sports industry is growing.
This is because of the advantages that ADR offers over litigation. ADR can help resolve
disputes more quickly, efficiently and cost-effectively. It can also help maintain the
relationship between the parties to the dispute. As the sports industry grows and
develops, effective dispute resolution mechanisms are also needed. ADR is likely to
play an increasingly important role in sports litigation in the coming years.
4|Sports Dispute Resolution

In addition to the ADR bodies mentioned above, several other organizations provide
dispute resolution services to the sports industry. These include the International
Association for Sports Law (IASL), the Sports Dispute Resolution Centre (SDRC) and
the World Anti-Doping Agency (WADA). The choice of the out-of-court dispute
resolution body depends on the specific circumstances of the dispute. Some factors to
consider are the location of the dispute, the language of the dispute and the cost of the
proceedings. The use of ADR in sport is a complex and evolving subject. However, it
is clear that ADR is becoming an increasingly important tool in sports dispute
resolution.

Literature Review

The sports industry is a dynamic and lucrative sector involving diverse stakeholders
such as athletes, teams, governing bodies, sponsors and fans. However, as in any
complex field, disputes and disputes are inevitable. These disputes can arise from a
variety of sources, including: B. Issues Related to Contractual Conflicts, Disciplinary
Actions, Doping Allegations and Intellectual Property Rights. Effective dispute
resolution mechanisms are essential to maintaining the health and stability of the sports
industry. This literature review aims to provide an overview of the current state of
dispute resolution in the sports industry and highlight key theories, strategies and
developments.

1. Dispute Resolution Mechanisms in Sports

1.1. Arbitration and Mediation:
Arbitration and mediation have gained considerable influence in the
sports industry due to their perceived efficiency, impartiality and
expertise. (Mironi1, 2016) Look at how arbitration has become the most
popular method for resolving international sporting disputes. The Court
of Arbitration for Sport (CAS) is a prominent example, which provides
specialized panels to resolve sports-related conflicts (Jennings, 2008).

1
https://doi.org/10.1007/s40318-016-0101-4
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Instead, mediation has been advocated as a collaborative approach to

dispute resolution that allows parties to communicate and, where
possible, maintain relationships (Shonk, 20232).
1.2. Alternative Dispute Resolution (ADR):
Alternative Dispute Resolution involves several processes beyond
arbitration and mediation, including negotiation, mediation and early
neutral evaluation. (Michael E. Jones, 20163) highlight the benefits of
Alternative Dispute Resolution in sports disputes, particularly its cost-
effectiveness and potential for creative solutions. The International
Olympic Committee (IOC) has incorporated Alternative Dispute
Resolution mechanisms into its dispute resolution framework to resolve
disputes arising during the Olympic Games (Richard H. McLaren, 20014).

2. Trends and Challenges in Sports Dispute Resolution

2.1. Jurisdictional Issues and Forum Shopping:
The global nature of the sports industry often leads to jurisdictional issues
as parties seek favourable forums to resolve disputes. (Shivang & Harshit,
20205) examines the phenomenon of “forum shopping” in sports
arbitration, where parties strategically choose jurisdictions with
favourable legal frameworks. This practice raises questions about the
consistency and fairness of the results.
2.2. Technology and Online Dispute Resolution:
Advances in technology have brought opportunities for Online Dispute
Resolution (ODR) in the sports industry. Online Dispute Resolution
platforms offer convenience and accessibility, but concerns include data
security and the potential loss of face-to-face interactions (Cineros,
20206). The COVID-19 pandemic has accelerated the adoption of virtual

2
https://www.pon.harvard.edu/daily/mediation/how-mediation-can-help-resolve-pro-sports-disputes/
3 https://portal.igpublish.com/iglibrary/search/ROWMANB0014005.html

4
http://scholarship.law.marquette.edu/sportslaw/vol12/iss1/20
5
https://www.jurist.org/commentary/2020/04/yadav-gupta-sports-arbitration/
6
https://doi.org/10.1007/s40318-020-00165-9
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dispute resolution methods, highlighting the need for adaptive and

effective online dispute resolution strategies (Tan, 20237).

3. Key Issues in Sports Dispute Resolution

3.1. Doping and Anti – Doping Disputes:
Doping allegations and anti-doping violations remain controversial topics
in the sports industry. The World Anti-Doping Code provides a
comprehensive framework for resolving doping-related disputes,
emphasizing the importance of fair procedures and athletes' rights
(Kegelaers, Wylleman, De Brant, Van Rossem, Rosier 20188). Recent
cases such as the Russian doping scandal have highlighted the
complexities of balancing legal standards and equal opportunities (Ohl,
Fincouer, Schoch, 20209).
3.2. Player Contracts and Transfers:
Disputes over player contracts and transfers are common in professional
sports leagues. (Kornbeck, 201710) examines the challenges of meeting
contractual obligations and resolving transfer payment disputes. The
FIFA Dispute Resolution Chamber is an important mechanism for
resolving conflicts between players and clubs (De Weger, 201611).

4. Future Directions and Innovations

4.1. Sports Ombudsman Offices:
The creation of sports ombudsman offices was proposed to offer athletes
and interest groups an independent way to resolve disputes. These offices

7
http://dx.doi.org/10.2139/ssrn.4364077

8
https://doi.org/10.1080/16184742.2017.1384505

9
https://doi.org/10.1177/1749975520977345
10
https://doi.org/10.1007/s40318-017-0112-9
11
https://doi.org/10.1007/978-94-6265-126-5
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can increase transparency, trust and accountability in the sports industry

(Pfleegor, Soebbing, Seifried, 201812).
4.2. Ethical Considerations and Fair Play:
Ethical considerations are an integral part of sports dispute resolution. The
principle of fair play is central to the sports industry and dispute resolution
mechanisms must adhere to that principle by ensuring due process and
fairness (O’Leary, Khoo, 201313).

Conclusion

In summary, the complex form of dispute resolution in sport is an evolving landscape

that traverses legal, ethical and administrative aspects. This literature review discusses
the multifaceted nature of conflicts arising in the field of sports and the mechanisms
used to resolve them. The analysis emphasizes the importance of effective dispute
resolution processes in maintaining the integrity of sport, protecting the rights of
athletes and maintaining the credibility of the industry. One key factor in that search is
the recognition that the unique characteristics of sport require tailored methods of
dispute resolution. The fast-paced nature of the sport, combined with the international
dimension of many competitions, requires both fast and adaptable methods. While
traditional litigation is still important, it often proves insufficient to meet these demands.
Alternative methods such as mediation, arbitration and specialized sports courts provide
flexible and efficient platforms for dispute resolution, allowing parties to find solutions
that are more appropriate to the dynamic environment of sport.

Ethical considerations loom large in the landscape of sports dispute resolution. The
reviewed literature emphasizes the importance of maintaining fairness and impartiality
during the process. Whether it involves athletes, teams, governing bodies or other

12
https://doi.org/10.1080/24704067.2018.1493355

13

https://doi.org/10.1007/s40318-013-0014-4
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stakeholders, maintaining transparency and avoiding conflicts of interest is critical to

maintaining the credibility of dispute resolution results. In addition, adherence to the
principles of sportsmanship and fair treatment strengthens the image and public trust of
the industry. The role of technology in reforming dispute resolution mechanisms in
sport cannot be overstated. Technology is changing the way conflicts are understood
and resolved. On Video Assistant Referees (VAR) in soccer and data analysis of
performance disputes. This dynamic change highlights the need for legal frameworks
that can keep pace with technological developments and ensure that the benefits of
innovation are maximized and the risks minimized.

An often-underestimated aspect of sports dispute resolution is its potential to set legal

precedents that extend beyond sports. Cases of doping violations, player contracts and
intellectual property rights have far-reaching consequences that resonate beyond the
boundaries of sports. Therefore, the results of sports-related disputes can shape legal
interpretations and even influence broader social debates on issues such as workers'
rights, discrimination and public accountability.

Finally, this literature review highlights the complex interplay of legal, ethical and
administrative aspects in the area of sports dispute resolution. The unique characteristics
of the industry require innovative approaches that maintain fairness, adhere to ethical
standards and utilize technological advances. By recognizing the wider impact of
sports-related disputes and adopting a collaborative approach, the sports industry can
ensure that its dispute resolution mechanisms remain robust, adaptable and reflect the
evolving nature of sport worldwide. As sport continues to capture hearts and minds
around the world, how conflicts are resolved will undoubtedly play a key role in shaping
the future of the industry.
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