F.I.F.A. – Commissione per lo Status dei Calciatori (2013-2014) – controversie tra società – ———- F.I.F.A. – Players’ Status Committee (2013-2014) – club vs. club disputes – official version by www.fifa.com – Decision of the Single Judge of the Players’ Status Committee passed in Zurich, Switzerland, on 25 February 2014, by Geoff Thompson (England) Single Judge of the Players’ Status Committee, on the claim presented by the club, Club M, from country G as Claimant against the club, Club K, from country T as Respondent regarding a contractual dispute between the parties relating to the player H

F.I.F.A. - Commissione per lo Status dei Calciatori (2013-2014) – controversie tra società – ---------- F.I.F.A. - Players' Status Committee (2013-2014) – club vs. club disputes – official version by www.fifa.com – Decision of the Single Judge of the Players’ Status Committee passed in Zurich, Switzerland, on 25 February 2014, by Geoff Thompson (England) Single Judge of the Players’ Status Committee, on the claim presented by the club, Club M, from country G as Claimant against the club, Club K, from country T as Respondent regarding a contractual dispute between the parties relating to the player H I. Facts of the case 1. On 11 January 2010, Club M, from country G (hereinafter: the Claimant) and the Club K, from country T (hereinafter: the Respondent), concluded a transfer agreement (hereinafter: the agreement) for the transfer of the player H (hereinafter: the player), from the Claimant to the Respondent. 2. The agreement provided, inter alia, a sell-on clause, stipulating the following: Original German Version: “(…) 4. Wechselt der Spieler innerhalb der Vertragslaufzeit mit KS (01.01.2010 – 30.06.2013) zu einem dritten Club des In- und Auslands ist Club M mit 20% an einer möglichen Transferentschädigung beteiligt. (…)“ Free Translation from German: “(…) 4. Should the player during the course of his employment contract with [the Respondent] (01.01.2010 – 30.06.2013) be transferred to a third club nationally or internationally [the Claimant] shall receive 20% of any possible transfer fee. (…)” 3. On 22 June 2012, the Respondent concluded a transfer agreement regarding the player with Club F, from country T (hereinafter: Club F) for a transfer compensation of EUR 3,750,000, payable as follows: “(…) - EUR 500,000, on 30 July 2012; - EUR 500,000, on 30 August 2012; - EUR 275,000, on 30 September 2012; - EUR 275,000, on 30 October 2012; - EUR 275,000, on 30 November 2012; - EUR 275,000, on 31 December 2012; - EUR 275,000, on 31 January 2013; - EUR 275,000, on 28 February 2013; - EUR 275,000, on 31 March 2013; - EUR 275,000, on 30 April 2013; - EUR 275,000, on 31 May 2013; - EUR 275,000, on 30 June 2013; (…)” 4. On 23 April 2013, the Single Judge of the Players’ Status Committee decided that the Respondent had to pay to the Claimant the amount of EUR 585,000 plus default interest, representing 20% of the first nine installments (30 July 2012 until 31 March 2013) of the transfer compensation which was paid to the Respondent by Club F. 5. On 24 June 2013, the Claimant lodged a claim at FIFA, requesting payment of EUR 165,000, representing 20% of the remaining three installments of the transfer compensation of EUR 825,000, plus 5% interest p.a. as of the respective due dates. 6. In spite of having been asked to do so, the Respondent never provided FIFA with its position on the claim of the Claimant, although it had been informed that, in absence of a reply, a decision would be rendered on the basis of the documents already on file. II. Considerations of the Single Judge of the Players’ Status Committee 1. In a first instance, the Single Judge of the Players’ Status Committee (hereinafter: the Single Judge) analysed which Procedural Rules were applicable to the matter at hand. In this respect, he referred to art. 21 par. 1 and 2 of the Rules Governing the Procedures of the Players’ Status Committee and the Dispute Resolution Chamber (edition 2012; hereinafter: the Procedural Rules) as well as to the fact that the present matter was submitted to FIFA on 24 June 2013, thus after 1 December 2012. Therefore, the Single Judge concluded that the 2012 edition of the Procedural Rules is applicable to the matter at hand. 2. Subsequently, the Single Judge analysed which edition of the Regulations on the Status and Transfer of Players was applicable as to the substance of the matter. In this respect, he referred, on the one hand, to art. 26 par. 1 and 2 of the 2012 edition of the Regulations on the Status and Transfer of Players and, on the other hand, to the fact that the claim was lodged in front of FIFA on 24 June 2013. In view of the foregoing, the Single Judge concluded that the 2012 edition of the Regulations on the Status and Transfer of Players (hereinafter: the Regulations) is applicable to the case at hand as to the substance. 3. Furthermore, the Single Judge confirmed that, on the basis of art. 3 par. 1 and par. 2 of the Procedural Rules in connection with art. 23 par. 1 and par. 3 as well as art. 22 lit. f) of the Regulations, he was competent to deal with the present matter since it concerned a dispute between two clubs affiliated to two different associations. 4. The competence of the Single Judge and the applicable regulations having been established, and entering into the substance of the matter, the Single Judge started by acknowledging the above-mentioned facts as well as the arguments and the documentation submitted by the parties. 5. The Single Judge started by noting that it was undisputed between the parties of the dispute that, in the agreement dated 11 January 2010, they agreed upon a “sell-on-clause” according to which the Claimant was entitled to receive 20% of the transfer fee paid to the Respondent for the subsequent transfer of the player to a third club. 6. In addition to that, the Single Judge noted that the Respondent and Club F, on 22 June 2012, concluded a transfer agreement, on the basis of which the player was transferred from the Respondent to Club F, for a total transfer fee of EUR 3,750,000, payable in twelve instalments. The first two instalments were an amount of EUR 500,000 each, payable on 30 July 2012 and 30 August 2012, the last ten for an amount of EUR 275,000 each, payable on 30 September 2012, 30 October 2012, 30 November 2012, 31 December 2012, 31 January 2013, 28 February 2013, 31 March 2013, 30 April 2013, 31 May 2013 and 30 June 2013. 7. In continuation, the Single Judge recalled that on 23 April 2013, the Single Judge of the Players’ Status Committee already took a decision regarding the “sell-on-fee” of 20% of the first nine instalments of transfer compensation paid by Club F to the Respondent (cf. point I.4.). 8. Moreover, the Single Judge observed that since the aforementioned decision, the three last instalments of transfer compensation in the amount of EUR 275,000 each fell due on 30 April 2013, 31 May 2013 and 30 June 2013, respectively. 9. In continuation, the Single Judge noted that the Respondent, in spite of having been invited to do so, did not provide FIFA with its comments pertaining to the present matter. Therefore, the Single Judged deemed that, by doing so, the Respondent renounced to its right to defence and, thus, accepted the allegations of the Claimant. 10. As a consequence, the Single Judge referred to art. 9 par. 3 of the Procedural Rules and pointed out that in the present matter a decision shall be taken upon the basis of the documentation on file. In other words, upon the documents and arguments provided by the Claimant. 11. Bearing in mind the aforementioned, the Single Judge went on to establish whether there was any payment due by the Respondent to the Claimant, based on the transfer agreement in question. 12. In this respect, the Single Judge noted that the Claimant on 24 June 2013 lodged a claim at FIFA, requesting the payment of EUR 165,000, representing 20% of the remaining three installments of the transfer compensation of EUR 825,000, plus 5% interest p.a. as of the respective due dates, indicating that the Respondent failed to comply with its contractual obligations towards its club. 13. In this respect, the Single Judge recalled that the Respondent did not provide any valid argument which would justify the non-payment of the amounts due according to the “sell-on-clause” and that, thus, the Respondent had failed to respect the terms of the transfer agreement it had entered into with the Claimant on 11 January 2010. 14. Consequently, the Single Judge held that, in accordance with the basic legal principle of pacta sunt servanda, which in essence means that agreements must be respected by the parties in good faith, the Respondent has to fulfill its contractual obligations towards the Claimant. Therefore, the Single Judge decided to accept the claim of the Claimant, including the interests requested, and held that the Respondent has to pay to the Claimant 20% of the amount of EUR 825,000, equalling to an amount of EUR 165,000. 15. Lastly, the Single Judge referred to art. 25 par. 2 of the Regulations in combination with art. 18 par. 1 of the Procedural Rules, according to which, in proceedings before the Players’ Status Committee including its Single Judge, costs in the maximum amount of currency of country H 25’000 are levied. The relevant provision further states that the costs are to be borne in consideration of the parties’ degree of success in the proceedings (cf. art. 18 par. 1 of the Procedural Rules). 16. Furthermore and according to Annexe A of the Procedural Rules, the costs of the proceedings are to be levied on the basis of the amount in dispute. On that basis, the Single Judge held that the amount to be taken into consideration in the present proceedings is EUR 165,000. Consequently, the Single Judge concluded that the maximum amount of costs of the proceedings corresponds to currency of country H 25,000. 17. In conclusion, and considering the particularities of the present proceedings and the fact that the Respondent never provided FIFA with its position on the claim of the Claimant, the Single Judge determined the costs of the current proceedings to the amount of currency of country H 25,000. 18. In respect of the above, and taking into account that the claim of the Claimant has been accepted, the Single Judge concluded that the costs of the current proceedings before FIFA had to borne by the Respondent. ***** III. Decision of the Single Judge of the Players’ Status Committee 1. The claim of the Claimant, Club M, is accepted. 2. The Respondent, Club K, has to pay to the Claimant, Club M, within 30 days as from the date of notification of this decision, the amount of EUR 165,000, plus interest at a rate of 5% p.a. as follows: - on the amount of EUR 55,000 as of 1 May 2013, - on the amount of EUR 55,000 as of 1 June 2013, - on the amount of EUR 55,000 as of 1 July 2013. 3. If the aforementioned amount plus interest is not paid within the aforementioned deadline, the present matter shall be submitted, upon request, to FIFA’s Disciplinary Committee, for consideration and a formal decision. 4. The final costs of the proceedings in the amount of currency of country H 25,000 are to be paid by the Respondent, Club K, within 30 days as from the notification of the present decision, to FIFA to the following bank account with reference to case nr.: 5. The Claimant, Club M, is directed to inform the Respondent, Club K, immediately and directly of the account number to which the remittance under point 2 is to be made and to notify the Single Judge of the Players’ Status Committee of every payment received. ***** Note relating to the motivated decision (legal remedy): According to article 67 par. 1 of the FIFA Statutes, this decision may be appealed against before the Court of Arbitration for Sport (CAS). The statement of appeal must be sent to the CAS directly within 21 days of receipt of notification of this decision and shall contain all the elements in accordance with point 2 of the directives issued by the CAS, a copy of which we enclose hereto. Within another 10 days following the expiry of the time limit for filing the statement of appeal, the appellant shall file a brief stating the facts and legal arguments giving rise to the appeal with the CAS (cf. point 4 of the directives). The full address and contact numbers of the CAS are the following: Court of Arbitration for Sport Avenue de Beaumont 2 1012 Lausanne - Switzerland Tel: +41 21 613 50 00 Fax: +41 21 613 50 01 e-mail: info@tas-cas.org www.tas-cas.org For the Single Judge of the Players’ Status Committee: Jérôme Valcke Secretary General Encl. CAS Directives