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By Karolos Grohmann
BEIJING, Aug 7 (Reuters) - World soccer's governing body FIFA said on Thursday the decision by the Court of Arbitration for Sport to allow the return of a handful of players to their clubs was "dramatic" and could kill off the Games' soccer tournament.
"There may be a snowballing effect," FIFA chief Sepp Blatter told an International Olympic Committee session.
"I gulped when I heard that decision by CAS. All other clubs that have released their players are now in the limelight and may decide to withdraw their players from the tournament."
CAS on Wednesday upheld an appeal from the clubs after FIFA said they were obliged to release eligible players for the tournament.
The case was taken to CAS by Barcelona, Schalke and Werder Bremen for their players Lionel Messi, Rafinha and Diego.
"But if all the national squads lose players, if clubs force them to return home, we simply may not have an Olympic football tournament," Blatter said. "We could do beach soccer or a five-a-side tournament. The world would not understand it.
"We were greatly surprised by the fact that CAS awarded in favour of the clubs," Blatter, visibly upset by the decision, told IOC members.
Blatter, an IOC member himself, said the situation now was complicated as the clubs could allow their players to compete in return of a financial compensation.
"The clubs could say let's let them play and we could be financially compensated. Is that the Olympic spirit?" Blatter asked. "It's a rather dramatic situation. This is a most uncomfortable situation.
"We can't let them go," he said. "We can't see them return home, a day before Games start, putting in danger in entire tournament."
IOC President Jacques Rogge said he shared his fellow member's feeling and pleaded with the clubs to let the players stay. He also pledged to resolve the situation for future Games after the Aug. 8-24 Beijing Olympics.
"In the meantime we have to manage it in the short term," Rogge said. "We appeal to clubs not to withdraw player and allow players and put into reality their dreams"
"We ask them, plead with them, to respect the Olympic dream. I am quite sure we can find right solutions in the long term."
