October 03, 2012 15:12

Bulgarian Chess Federation sues FIDE for London 2013 bidding procedure

Bulgarian Chess Federation sues FIDE for London 2013 bidding procedure

The Bulgarian Chess Federation is taking FIDE to the Court of Arbitration for Sport (CAS) for the bidding procedure of the Candidates tournament that's now scheduled for March 2013 in London. The BCF seeks the annulment of the contract between FIDE and Agon, and believes that the new FIDE Statutes "jeopardise the rights to fair procedure and just trial".

With the enthusiastic "Breaking News!!!" in the subject field, the Bulgarian Chess Federation last Saturday distributed the following press release to chess media:

Bulgarian Chess Federation Filed Statement of Appeal against FIDE at the Court of Arbitration for Sport in Lausanne

Through its legal representatives, Marco del Fabro and Zoran Damjanovic, Bulgarian Chess Federation has filed the statement of appeal against FIDE within the set deadline. The appeal was filed at the Court of Arbitration for Sport in Lausanne with respect to the decisions taken at the last FIDE General Assembly in Istanbul.

Believing that Articles 13.5 and 13.6 of the Statute jeopardise the rights to fair procedure and just trial, Bulgarian Chess Federation required the abolition of these provisions. In addition, the annulment of the contract between FIDE and company Agon International Ltd was demanded.

Legal representatives of Bulgarian Chess Federation requested from the CAS to bring the decision according to which FIDE Presidential Board would be obligated to award, in compliance with the bidding procedure, the organisation of candidates' matches to Bulgaria or Azerbaijan. Finally, the introduction of interim measures was proposed, according to which the validity of the contract between FIDE and company Agon International Ltd would temporarily be suspended. That would mean the matches of candidates in London, planned for March next year, could not be held.

By starting this procedure, Bulgarian Chess Federation is of the opinion that it protects equal rights of all national federations, particularly regarding the bidding procedure. Additionally, the articles of FIDE Statute, adopted in Istanbul, which are called into question are the ones that would, if applied, put at risk possibility of any federation to appeal to the court provided it is dissatisfied with a FIDE decision.

On Monday, September 24th FIDE published the new Statutes and Electoral Regulations as approved by the General Assembly during the Istanbul Olympiad. The Articles 13.5 and 13.6 which the Bulgarian Chess Federation refers to, are the following:


13.5 Any member federation or affiliated organisation suing FIDE:

i. shall disclose the source of their funding in any proceedings; and
ii. shall be obliged to provide as security for costs a bank guarantee drawn on a bank suitable to FIDE’s bankers, in an acceptable form and in a reasonable amount to be determined by the CAS or relevant court as the case may be but, in any event, limited to a maximum of €200,000.  The amount fixed for the security for costs shall be without prejudice to the final decision on costs pursuant to section 13.6 below.

The requirements in (i) and (ii) are mandatory conditions for an appeal before CAS.

13.6 In case FIDE is sued before the CAS on the basis of the abovementioned arbitration clauses, then in the event they are unsuccessful, the losing claimant, by way of derogation from Art. R64.5 and R 65.3 of the CAS Code (or any provisions that the CAS may subsequently enact in lieu of these provisions), shall be held liable for all reasonable expenses incurred by FIDE in defending the case in proportion to the degree of the success of FIDE and the compensation shall hence not be limited to a mere contribution towards legal fees and expenses. The questions whether expenses are reasonable will be assessed in light of all circumstances in particular of the expenses of the claimant party. For purposes of making a decision on costs, the Panel shall determine the relative success of the parties on their claims and counterclaims. The same liability will apply in case FIDE initiates and loses a CAS arbitration based on the abovementioned arbitration clauses. 


During the General Assembly, Silvio Danailov, as President of the Bulgarian Chess Federation, was one of the few to vote against the new FIDE Statutes, for this reason. Before the vote, he took the microphone and objected to this 200,000 Euro deposit, despite the fact that it's CAS that will decide on the amount of the deposit, and that it will be limited to a maximum of 200,000.

The other part of the above press release by the Bulgarian Chess Federation, about anulling the FIDE/Agon contract and with it the 2013 London Candidates tournament, sounds more serious. Already back in March Danailov threated to take FIDE to court, stating

our lawyers are studying the case

This week the Bulgarian Chess Federation decided to sue FIDE indeed. About the bidding procedure, Danailov told us in March:

Till the official deadline of January 31st there were two bids, from Bulgaria and Azerbaijan. There was no bid from London and the contract with Agon was not signed. So, logically the Candidates Tournament can be only in Bulgaria or Azerbaijan. Agon can organise everything else after the Candidates.

It doesn't seem likely that the agreement between FIDE and Agon will be anulled. The contract was ratified by the General Assembly last month, and the first tournament organized by Agon, the London Grand Prix, will finish today. But we'll have to wait and see how the CAS judges look at these matters.

Peter Doggers's picture
Author: Peter Doggers


valg321's picture

well, you can't blame Danailov for not sticking to his word

Abbas's picture

Deny love is back but this time his opponent is FIDE

RuralRob's picture

Never a dull moment with Danailov!

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