BAT – new arbitration clause

Aditya Shankar

Pursuant to the introduction of the BAT Payment Order Procedure (‘BAT POP’) on 1st February, 2024, the BAT has provided details regarding the nuances of the procedure on its website (https://www.fiba.basketball/bat/process). In the interest of encouraging claimants with lesser financial means to access BAT as well as the speedy disposal of claims whose principal value does not exceed EUR 15.000 (excluding interest and late payment penalties), it has implemented a summary procedure which entails Claimants to file a BAT POP Order Request on – https://bat-payment-order.martens.legal/, along with the payment of a non-reimbursable process fee of EUR 1000/-. Unlike the regular BAT Arbitration Procedure, the claimants under the BAT POP do not have to file a detailed Request for Arbitration. Importantly, there is no Arbitrator involved and the BAT President issues the provisional Payment Order without examining the merits as long certain requirements are met. However, for parties to utilise the BAT POP, the BAT requires the same to have been agreed by the parties in their contracts.

Hence, going forward, the BAT has recommended parties to amend the standard BAT Arbitration Clause in all contracts, agreements, and settlement agreements in accordance to the below –

Any dispute arising from or related to the present contract shall be submitted to the Basketball Arbitral Tribunal (BAT) in Geneva, Switzerland. If a Request for Arbitration is filed, the dispute shall be resolved in accordance with the BAT Arbitration Rules by a single arbitrator appointed by the BAT President. The arbitrator shall decide the dispute ex aequo et bono. Provided that the relevant requirements as set out in the BAT Arbitration Rules are met, each party may file a Payment Order Request instead of a Request for Arbitration. In such case, a Payment Order Procedure shall be conducted in accordance with the BAT Arbitration Rules. The parties acknowledge and agree that any Final Payment Order issued by the BAT President shall have the effects of a final and binding arbitral award between the parties to the dispute. In any case, the seat of the arbitration shall be Geneva, Switzerland. The arbitration shall be governed by Chapter 12 of the Swiss Act on Private International Law, irrespective of the parties’ domicile. The language of the arbitration shall be English.” 

For further information on the same, feel free to contact us.

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