The Swiss Arbitration Court has ruled on a dispute between the American Formula 1 team Haas and the Russian concern Uralkali. The verdict states that Haas violated the sponsorship agreement and is obliged to pay compensation to the Urals. In addition, the Americans were denied counterclaims.

The outcome of the high-profile case can be called a victory for the Russian side. The Swiss court turned out to be impartial and not politically biased. Unlike other judicial bodies in Western Europe. The result is a fair decision.

Honey year of two structures

In December 2020, Haas signed a contract with 21-year-old Russian driver Nikita Mazepin. The peculiarity of the deal was that Nikita is the son of the famous Russian businessman Dmitry Mazepin, president of the Uralchem ​​company, which is the main shareholder of Uralkali. The Russian company became the title sponsor of Haas, which was reflected in the name of the team – Uralkali Haas F1 Team, and in the design of the car, made in the colors of the Russian flag. Mazepin Jr.’s sporting successes remained modest. As well as his partner Mick Schumacher, the son of the famous German racer. Both drivers did not score a single point all year, and the team itself took last place in the Constructors’ Championship in the 2021 season.

Perhaps sooner or later the two young racers would have achieved something. But the cooperation between Haas and Uralkali lasted one year and one day. Before the start of the 2022 season, the racing team, for political reasons, unilaterally terminated its contracts with Uralkali and Mazepin Jr. In addition, both father and son were subject to EU sanctions.

Nikita Mazepin / Photo: © Mark Thompson / Staff / Getty Images Sport / Gettyimages.ru

The son is not responsible for his father

For Nikita Mazepin, the sanctions meant a ban on participation in Formula 1 and in most competitions held not only in Europe. For example, the Dakar rally-raid takes place on other continents, but with the money of European sponsors. Therefore, Nikita’s way there is barred. A suspension from racing could ruin the young driver’s career, and Mazepin took action. His lawyers emphasized that Dmitry Mazepin heads Uralchem, not Uralkali, and therefore is not directly related to the agreement with Haas. And therefore, the son should not be responsible for his father, who is on the sanctions list. EU representatives objected, pointing out that 80% of Uralkali shares belonged to Uralchem. And in general, Nikita would not have made it into the Formula 1 team without the patronage of an influential parent. But the court sided with the racer and lifted the sanctions from him. Nikita got the opportunity to compete in races under a neutral status.

Small, but a victory. Why small? The path to Formula 1 was still closed. Other teams have not contacted Mazepin, there are no interested in inviting him, just as only Uralkali can stand behind Nikita. But the doors to other races opened, and therefore the athlete had the opportunity to continue his career.

Nikita Mazepin / Photo: © Denis Bushkovsky / Match TV

They will pay everything

Uralkali was also dissatisfied with the behavior of its former partners. “That’s not how things are done,” the board of the Russian chemical enterprise decided. And they sued Haas. The essence of the claim was the return of sponsorship funds invested in the American “stable”. If you don’t want to cooperate with us anymore, don’t, but return the money. With interest. 13 million dollars, which is exactly the amount mentioned in the press, is not lying around on the road. It was naive to hope that the Americans’ conscience would speak. Therefore, the claim was submitted to the Swiss Arbitration Court. And he, to the great displeasure of Haas, obliged the racing team to return the funds received to Uralkali. The verdict is final and cannot be appealed.

The press service of Uralkali did not disclose the details of the case, limiting itself to general phrases.

— The Company expects Haas to promptly fulfill its obligations, confirmed by the decision of the arbitration tribunal. The funds received are planned to be used to develop and modernize the production of potash fertilizers, says the press release.

Another small victory. Brilliant work by lawyers – and Western justice, albeit gritting its teeth, had to admit that we were right.

Uralkali company stand / Photo: © RIA Novosti / Alexey Danichev

Where are you, new Bosman

In general, Nikita was right that he did not fight for his rights in CAS, but turned to an ordinary court, independent of international sports structures. At one time, far from being the most talented Belgian footballer, Jean-Marc Bosman also began to fight for his rights in the most ordinary court. You can have different views on Bosman’s case, but he achieved his goal. The rights of football players were equal to the rights of builders, accountants, and janitors.

Jean-Marc Bosman / Photo: © Christof Koepsel / Staff / Bongarts / Gettyimages.ru

But some kind of vicious practice has developed in sports. All athlete cases are heard only by the Court of Arbitration for Sport. Who established this monopoly? IOC? WADA? So why not break this vicious chain?

Of course, Nikita Mazepin is a representative of a sports discipline that is not included in the Olympic program, and WADA’s authority does not extend to Formula 1. But sooner or later there will be an athlete from other disciplines who will achieve the truth and force the world bureaucracy to reckon with it. Mazepin’s case says that one must not give up, but must use all legal means to achieve justice.

Author: Oleg Lytkin