Euroleague Basketball’s Finance Panel, an independent regulatory body, has imposed a sanction consisting of a prohibition to register new players and coaches until February 28, 2023, and a fine of €25,000 on Crvena Zvezda for severe violations of the Financial Stability & Fair Play Regulations (FSFPR).
The case was referred to the Finance Panel by the Management Control Commission (MCC), the independent commission that reviews the financial performance of the clubs and their compliance with the relevant regulations, on December 1, 2022. The Finance Panel had opened an adjudicatory proceeding and imposed a provisional ban on Zvezda that prohibited the registration of players and coaches.
The imposed sanctions consider the severity of the infractions, which included having overdue payables with players from current and previous seasons, as well as providing untrue or inaccurate information, allowing the club to take undue competitive advantage and to continue with its normal operations despite an irregular financial situation under the FSFPR.
The Panel has also considered Crvena Zvezda’s recidivism, as the club had previously been sanctioned on two other occasions within recent years. The sanction also warns the club that any further violation of the FSFPR may lead to more severe sanctions, such as victories discounted from the team’s record.
This decision may be appealed before the Court of Arbitration for Sport.