New Payment Order Procedure (POP) in BAT Arbitration Rules

MIES (Switzerland) - The new edition of the Basketball Arbitral Tribunal (BAT) Arbitration Rules has introduced a new Payment Order Procedure (POP) mechanism. This is a significant development as it makes it easier for claimants to resolve disputes with lower value through the BAT and, in particular, is expected to be highly beneficial for players with a low income involved in such cases.

Arguably the first of its kind in the context of international sports arbitration, the POP is comparable to default judgments that go before state courts. The new edition of rules comes into effect as of February 1, 2024.

This latest edition of rules directly addresses feedback received by the BAT user community during recent years, including at the BAT User Conference. It was clear there was a significant demand for a mechanism that provides access to the BAT for claimants who do not have the financial means to afford the arbitration costs involved in a regular BAT arbitration.

At the same time, the POP is also a response to the fact that in a significant number of BAT proceedings, respondents do not participate in the arbitration.

A claimant may request the BAT to issue a payment order for a specific monetary claim against a respondent.

The BAT will then issue such a payment order without examining the merits of the claim if some basic requirements are fulfilled and the respondent does not object to the issuance of the payment order.

An example scenario might be a player not being paid by the club the last month or two of their contract. Previously, a player might not have filed a case because of the modest sum involved, but the introduction of the new POP means that access to the BAT should become easier and more affordable for such lower-value disputes.

The POP will be available for claims not exceeding 15,000 euros and will be subject to a 1,000 euro processing fee. Importantly it will only be accessible by claimants if the parties have agreed on the application of the POP to their dispute.

Parties wishing to have this option for potential future financial disputes are advised to include in their contract the new alternative BAT clause provided under Article 0.3 of the BAT Rules.

Click here for the BAT Arbitration Rules.  

Meanwhile, information on the new Payment Order Procedure 'POP' can be found here and includes:

•   The legal effects of the POP
•   When the POP applies
•   How the POP works

There is also a specific User Guide available here. 

Additionally, the BAT will host a webinar to further explain the POP and to answer any potential questions on this procedure in February.

To find out more about the BAT, click here. 

FIBA