Hayatou in scathing court attack over $55m fine in Lagardere broadcasting deal

29th November 2018

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Former President of the Confederation of Africa Football (CAF) Issa Hayatou has launched a scathing attack on the huge fine imposed on him by an Egyptian court over a broadcasting deal for the Africa's football governing body, insisting the decision was politically motivated.

Hayatou says he will fight the $55m fine imposed on him and secretary general Hicham El Amrani most likely in an international court to put an 'end to this intolerable defamation and repeated attacks on my honour.' after the ruling by the Egyptian Economic Court (EEC).

The Egyptian Economic Court (EEC) found the duo guilty of violating local anti-monopoly rules in a multi-million dollar broadcasting deal involving the French company Lagardere.

The EEC ruled on Monday that Hayatou and Amrani violated the country's competition law by granting exclusive broadcasting and sponsorship rights to a single company, claiming it was done without a tender.

After two years of trial the court finally ruled that the two former leaders of Africa's football governing body were guilty of violating the anti-competition rules which led to the huge fines but Hayatou insists he will appeal the decision.

"This verdict is quite grotesque and has no justification in that it constitutes a flagrant disregard for the facts of the case and for the provisions of Egyptian and international competition law," Cameroon's Hayatou said in a statement.

"I will naturally appeal … while reserving the right to bring the case before any other competition international court, so as to put an end to this intolerable defamation and repeated attacks on my honour.

"There is no doubt from the beginning that this case has been initiated with a clear political agenda and for the benefit of certain individuals, in an attempt to damage my reputation and that of the former general secretary."

The Egyptian Competition Authority (ECA) started to investigate the Lagardere deal in June 2016, prior to asserting - in January 2017 - that Caf had engaged in monopolistic practices that infringed local laws.

The deal gives Lagardere rights to a variety of African football competitions, including the flagship Africa Cup of Nations, from 2017 until 2028.

With Caf based in Cairo, Egyptian authorities maintain it is governed by local laws and the court ruled on the matter on Monday in Cairo fining the duo and excluding the organisation they represented.

"Mr El Amrani and I have, at all times, and in particular in relation to the agreement with Lagardere Sports, acted ex-officio and as mandated by the Caf Executive Committee, as evidenced by the successive deliberations and minutes," added Hayatou's statement.

"The decision of the Economic Court to condemn us while clearing Caf is in flagrant violation … of the Egyptian Competition Law, the individuals concerned and the entity represented being legally inseparable and jointly liable.

"Despite the undeniable fact that the agreement between Caf and Lagardere is an agency agreement, the Economic Court insisted on qualifying it as a sales agreement," said Hayatou.

"This wrongful qualification goes against the provisions of the agreement and the documents submitted."

Dr. Mona El-Jarf, head of the Competition Protection and Prohibition of Monopolistic Practices Authority of Egypt, accused Hayatou and El Amrani of violating article 8 of paragraphs (a), (b) and (d) of Law 5 of the protecting competition and abuse of the exploitation rights.

This is in regards to the broadcast rights of the Africa Cup of Nations which was awarded to French company Lagardere Sport for 12 years from between 2017 and 2028 without offering it to other companies wishing to bid.

The ECA referred the case to the prosecution early last year, asking for the suspension of the commercial contract between CAF and French company Lagardère Sports, saying it violates Egypt's anti-monopoly laws.

The 72-year-old Cameroonian Hayatou lost his position as CAF head, which he held for 29 years, after losing elections in 2017 to Ahmad Ahmad of Madagascar.

The CAF was founded in 1957 in Khartoum by the Egyptian, Ethiopian and Sudanese football associations.

Since Cairo is home to the CAF headquarters, the decisions of its officials should be in accordance with the local laws, according to the Egyptian Competition Authority (ECA).