Decision of the Dispute Resolution Chamber passed in Zurich, Switzerland, on 24 March 2004, in the following composition: Slim Aloulou (Tunisia), Chairman Theo van Seggelen (Netherlands), member Michele Colucci (Italy), member Maurice Watkins (England), member Jean-Marie Philips (Belgium), member on the claim presented by Player A, as Claimant against Club B, as Respondent regarding a contractual dispute between the parties involved
Facts of the case - On 27 January 2003, player A and club B signed an employment contract valid from 1 February 2003 until 30 June 2005, according to which the player was entitled to receive a monthly salary as follows: - X, from February 2003 until June 2003, - X, from July 2003 until June 2004, - X, from July 2004 until June 2005. - Moreover, the player was entitled to receive signing-on fees in the total amount of X, to be paid in accordance with following instalments: - X, on 1 March 2003, - X, on 1 March 2004, - X, on 1 March 2005. - Furthermore, the club was also obliged to pay X as match bonus per victory and provide the player with accommodation, transport as well as two return flight tickets to Y. A copy of the aforementioned contract has been provided to the FIFA Administration. - Although an appendix to the relevant employment contract was signed on 1 February 2003, according to which the player was also entitled to receive an amount of X per month, the player is not claming any amounts in this respect. A copy of the aforementioned appendix to the employment contract has been provided to the FIFA Administration. - According to the player, on 12 June 2003, and after having been ordered to train with the club s youth team, he signed, together with club B, a document according to which he was released from attending the club s training sessions, on an indefinite basis. A copy of this document, without an official translation, has been provided to the FIFA Administration. - The player asserts that, from then on, the club prevented him from returning. - Moreover, in July 2003 the club also stopped paying him his salaries and his apartment s rent, thereby failing to comply with its contractual obligations and making it impossible for him to remain in Z. - Notwithstanding the above, player A asserts that in August 2003 the club paid him the amount of X, concerning some amounts which were outstanding before July 2003. - According to the player, in July 2003, he refused to sign an agreement regarding the early termination of the contract, since the club did not wish to pay him any amount as compensation. - In this respect, the player maintains that in July 2003 he was willing to accept the payment of X, which at the time corresponded to approximately half of the amounts due to him until the end of his employment contract. - In view of the above, the player is presently claiming the payment of his salaries from July 2003 until the end of the contract as well as X regarding signing-on fees, in the total amount of X. - On the other hand, in a very short statement, club B defends that the relevant contract was terminated by common agreement on 26 August 2003 and the player was therefore free to sign for another club since that date. - Despite having been requested twice to provide the FIFA Administration with a copy of the alleged amicable settlement regarding the contract s early termination, in order to support its position on the present matter, club B has failed to do so. - On 19 February 2004, the FIFA Administration authorized player A, at his request, to sign for another club of his choice. 2
Considerations of the Dispute Resolution Chamber The Dispute Resolution Chamber shall review disputes coming under its jurisdiction pursuant to art. 42 of the revised FIFA Regulations for the Status and Transfer of Players, at the request of one of the parties to the dispute. According to art. 42, par. 1 lit. (b) of the revised FIFA Regulations for the Status and Transfer of Players, the triggering elements of the dispute (i.e. whether a contract was breached, with or without just cause, or sporting just cause), will be decided by the Dispute Resolution Chamber. If an employment contract is breached by a party, the Dispute Resolution Chamber is responsible to verify whether a party is accountable for compensation and outstanding payments. Also, the Dispute Resolution Chamber will establish the amount of compensation to be paid and decide whether sports sanctions must be imposed (cf. art. 42, par. 1, b, ii and iii in connection with art. 22 and 23 of the aforementioned Regulations). Consequently, the Dispute Resolution Chamber is the competent body to decide on the present litigation concerning the alleged breach of contract between the claimant and the respondent. Once its competence was thus established, the Dispute Resolution Chamber went on to treat the substance of the case. It was noted that player A is claiming the payment of all the outstanding amounts that are established in his employment contract with club B (dated on 27 January 2003) until the end of its validity, based on an alleged unilateral breach of contract without just cause by club B. The Dispute Resolution Chamber acknowledged that player A, in support of his allegations, has provided the FIFA Administration with a copy of the aforementioned employment contract and a letter from club B, dated 12 June 2003, releasing him from attending the club s training sessions, on an indefinite basis. The Dispute Resolution Chamber also took note of the position of club B, according to which the claimant and the respondent had agreed to terminate their relevant employment contract by mutual consent, on 26 August 2003. 3
However, the members of the Chamber underlined that, not only had club B provided the FIFA Administration with a clearly insufficient statement, only referring to the fact that both parties had reached the aforementioned cancellation agreement, but it also failed to provide a copy of such agreement, despite having been requested to do so on several occasions. The respondent s inability to prove its position in the matter left the members of the Chamber with no other choice but to accept the statement of the claimant. In this regard, the Dispute Resolution Chamber acknowledged that club B had stopped complying with its contractual obligations towards player A since July 2003, after having prevented the player from training with the team. In light of the above, and for all the aforementioned reasons, the Dispute Resolution Chamber reached the conclusion that club B has unilaterally breached its employment contract with player A without just cause. Furthermore, the Dispute Resolution Chamber confirmed that the termination of the working relationship between player A and club B took place on 19 February 2004. As a consequence, the Dispute Resolution Chamber stressed that, in accordance with its well established jurisprudence, club B is liable to pay player A, his salaries from July 2003 until February 2004 in the amount of X, as well as a compensation for the club s unilateral breach of contract without just cause, in an amount equivalent to three months salaries, that is X. In addition to the aforementioned, with regard to the player s signing-on fees and taking into account that the relevant labour relationship actually ended in February 2004, the Dispute Resolution Chamber decided that club B is liable to pay player A the amount of X, which corresponds to the proportion of the signing-on fees that he is entitled to receive for the period of his employment contract during which he remained contractually bound to the club, after deducting the amount of X already paid to him. In conclusion, the members of the chamber condemned club B to pay player A the total amount of X. 4
Decision of the Dispute Resolution Chamber 1. The claim of player A is partially accepted. 2. The respondent, club B, must pay the amount of X to the claimant, player A. 3. Club B is directed to pay the amount due to player A within 30 days as from the date of the notification of this decision. 4. In the event that the debt of the respondent is not paid within the stated deadline, an interest rate of 5% per year will apply. 5. If the aforementioned sum is not paid within the stipulated deadline, the present matter shall be submitted to FIFA s Disciplinary Committee, so that the necessary disciplinary sanctions may be imposed. 6. This decision may be appealed before the Court of Arbitration for Sport (CAS) in accordance with art. 60 par. 1 of the FIFA Statutes. The statement of appeal must be sent to the CAS directly within 10 days of receiving notification of this decision and has to contain all elements in accordance with point 2 of the directives issued by the CAS, copy of which we enclose hereto. Within another 10 days following the expiry of the time limit for the filing of the statement of appeal, the appellant shall file with the CAS a brief stating the facts and legal arguments giving rise to the appeal (cf. point 4 of the directives). The full address and contact numbers of the CAS are the following: Avenue de l Elysée 28 1006 Lausanne Tel: +41 21 613 50 00 Fax: +41 21 613 50 01 e-mail: info@tas-cas.org www.tas-cas.org 5
For the Dispute Resolution Chamber: Urs Linsi General Secretary Enclosed: CAS directives 6