The inaugural edition of FIFA’s expanded Club World Cup took place in the United States from 14 June to 13 July 2025. The tournament was ultimately won by Chelsea FC, who swept aside UEFA Champions League holders Paris Saint-Germain with a commanding 3-0 victory in the final, delivering a ruthless first-half performance at the MetLife Stadium in New Jersey. Chelsea began their campaign with a 2-0 win over Los Angeles FC (LAFC), a side whose participation in the tournament only materialised following a dramatic extra-time play-off victory against Club América in June 2025. That play-off became necessary after FIFA expelled Club León from the competition for breaching the Club World Cup regulations on multi-club ownership.
This article will examine the factual circumstances that led to Club León’s expulsion, analyse their subsequent appeal to the Court of Arbitration for Sport (CAS), and consider the wider implications this case holds for FIFA’s enforcement of ownership rules within global football.
The Background to Club León’s Expulsion
Club León secured their place at the 2025 FIFA Club World Cup by winning the 2023 CONCACAF Champions Cup, defeating LAFC 3-1 on aggregate in the final. Their qualification was set to be a landmark moment for the club, offering them the chance to represent the North American region on world football’s biggest club stage. However, their participation soon became clouded by unresolved concerns surrounding multi-club ownership. León are owned by Grupo Pachuca, a Mexican conglomerate that also controls several other football clubs, most notably fellow Liga MX side C.F. Pachuca and Spanish La Liga team Real Oviedo. Both León and Pachuca qualified for the Club World Cup by winning the 2023 and 2024 CONCACAF titles respectively.
This dual qualification immediately raised red flags regarding FIFA’s regulations on multi-club ownership, which are designed to preserve the integrity of competitions by preventing conflicts of interest between commonly owned teams. Despite these concerns, both clubs were included in the official tournament draw, which took place on 5 December 2024 in Miami. León and Pachuca were placed in separate four-team groups while the matter of their ownership structure remained unresolved. Domestically, Liga MX voted in November 2024 to eliminate multi-club ownership within the league. However, this decision allowed owners a grace period until 2027 to complete the necessary divestments, meaning Grupo Pachuca’s simultaneous ownership of León and Pachuca remained in place as the tournament approached.
FIFA’s Expulsion Decision and Club León’s CAS Appeal
In October 2024, FIFA announced their regulations for the 2025 Club World Cup. According to Article 10(1)(c), “no individual or legal entity may have control or influence over more than one club participating in the competition.” Given that both Club León and C.F. Pachuca are owned by Grupo Pachuca, their simultaneous qualification for the competition placed them in direct violation of these ownership rules.
On March 21 2025, FIFA confirmed that Club León had been removed from the competition, citing Grupo Pachuca’s failure to demonstrate compliance with the multi-club ownership criteria outlined in Article 10 of the tournament regulations. FIFA’s Disciplinary Committee had initially opened proceedings against both León and Pachuca before referring the case directly to the FIFA Appeal Committee under Article 56(3) of the FIFA Disciplinary Code.
The Appeal Committee’s detailed investigation, which included a 55-page report, concluded that Grupo Pachuca maintained influence over both clubs and that proposed measures, such as the establishment of a trust to manage León’s operations independently, were insufficient to satisfy FIFA’s standards of operational independence. Grupo Pachuca challenged FIFA’s decision by filing an appeal with the Court of Arbitration for Sport (CAS), maintaining that both León and Pachuca operated with full administrative independence. During FIFA’s earlier internal appeal proceedings, Grupo Pachuca had also urged FIFA to adopt a more flexible approach in line with UEFA, which permits the use of ownership trusts under certain conditions to manage conflicts arising from multi-club ownership.
CAS heard consolidated appeals from Club León, Pachuca, and a separate appeal by Costa Rican club Alajuelense, who had petitioned to replace León in the tournament. On 6 May, CAS upheld FIFA’s decision, ruling that the measures taken by Grupo Pachuca did not sufficiently eliminate its influence over León, thereby breaching Article 10(1) of the Club World Cup regulations. The panel rejected arguments that the establishment of a trust could resolve the ownership conflict, determining that the proposed structure failed to deliver the level of independence and control separation required under the regulations. CAS also dismissed Alajuelense’s appeal, which sought the removal of both León and Pachuca and the Costa Rican club’s own admission into the competition.
The decision to expel Club León did not go unchallenged on the pitch. James Rodríguez, the former Real Madrid and Everton midfielder who had joined León earlier in 2025, publicly condemned FIFA’s decision, labelling it a “grave injustice.” His frustration was shared by teammate Eduardo Berizzo, who criticised the outcome as fundamentally unfair. “We won the right on the field, and now FIFA wants to take it away,” Berizzo stated, highlighting the players’ sense of disappointment after earning their qualification through sporting merit. Following CAS’s ruling, FIFA proceeded with plans to fill León’s vacated position. LAFC, as runners-up in the 2023 CONCACAF Champions Cup, were brought back into consideration, while Club América, the top-ranked CONCACAF side not already qualified, were invited to contest a play-off for the final tournament position.
Beyond sporting implications, the financial stakes were significant, with FIFA confirming that each CONCACAF participant would receive a participation fee of $9.55 million. The outcome of the León case reaffirmed FIFA’s strict stance on multi-club ownership within its competitions, echoing the long-standing regulations enforced by UEFA. Despite Grupo Pachuca’s claims of operational independence and their expressed intention to sell León, FIFA and CAS maintained that competitive integrity required complete and timely compliance with ownership rules, leaving León’s hard-earned qualification nullified in the process.
Lessons Learned and Future Considerations
The Club León case has re-affirmed FIFA’s zero-tolerance approach to multi-club ownership conflicts within its global competitions. For ownership groups, it is a clear warning that operational independence measures, even if acceptable domestically, must align with FIFA’s stricter regulatory framework to ensure eligibility on the international stage. Grupo Pachuca’s disqualification serves as a reminder that domestic compliance does not guarantee a place in FIFA tournaments. The need for early resolution of ownership conflicts is now more urgent, especially with FIFA tournaments offering substantial financial rewards and global visibility. For FIFA, the case highlights the need to strengthen its pre-tournament vetting processes and provide clearer guidance to ownership groups navigating the evolving landscape of multi-club networks.