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 23 April 2014, by Geoff Thompson (England) Single Judge of the Players’ Status Committee, on the claim presented by the club Club A, from country B as Claimant against the club Club C, from country D as Respondent regarding a contractual dispute between the parties relating to the Player E
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 23 April 2014,
by
Geoff Thompson (England)
Single Judge of the Players’ Status Committee,
on the claim presented by the club
Club A, from country B
as Claimant
against the club
Club C, from country D
as Respondent
regarding a contractual dispute between the parties
relating to the Player E I. Facts of the case
1. On 24 August 2012, the club from country B, Club A (hereinafter: the Claimant), and the club from country D, Club C (hereinafter: the Respondent), concluded a transfer agreement for the transfer of the player, Player E (hereinafter: the player), from the Claimant to the Respondent.
2. The aforementioned transfer agreement stipulated, inter alia, the following:
“…it is hereby agreed that Club A shall transfer the Player’s registration to Club C permanently and in consideration thereof Club C shall pay to Club A the Transfer Fee of net € 3,700,000 (three million seven hundred thousand Euros) payable as follows:
a) € 500,000 (five hundred thousand Euros) payable by 1st of September 2012
b) € 1,800,000 (one million eight hundred thousand Euros) payable by 30 September 2012
c) € 700,000 (seven hundred thousand Euros) payable by 31 March 2013
d) € 700,000 (seven hundred thousand Euros) payable by 30 September 2013.”
3. On 20 December 2013, the Claimant lodged a claim in front of FIFA against the Respondent for breach of contract indicating that the Respondent had failed to pay the fourth instalment of EUR 700,000. In view of the foregoing, the Claimant requested the payment of EUR 700,000 plus default interest as of 30 September 2013 from the Respondent.
4. In spite of having been invited by FIFA to provide its position regarding the claim, the Respondent did not respond to the claim or make any statements at all during the course of the investigation.
II. Considerations of the Single Judge of the Players’ Status Committee
1. First of all, 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. 2 and 3 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 20 December 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 is 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 20 December 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. First of all, the Single Judge took note that the Claimant maintained that it is entitled to receive EUR 700,000, indicating that the Respondent had failed to pay such amount to the Claimant pertaining to the fourth instalment of the transfer compensation in relation to the transfer of the player from the Claimant to the Respondent.
6. Furthermore, the Single Judge duly noted that the Respondent never took position in the present matter, although having been invited to do so by FIFA. Therefore, the Single Judge deemed that, in this way, the Respondent renounced to its right of defence and accepted the allegations of the Claimant.
7. As a consequence of the aforementioned consideration, the Single Judge established that, in accordance with art. 9 par. 3 of the Procedural Rules, he shall take a decision upon the basis of the documents already on file.
8. In this respect, the Single Judge emphasized once more that the Respondent had not contested the allegations of the Claimant and had, thus, not provided any valid argument which would justify the non-payment of the fourth instalment of the transfer fee. Therefore, the Single Judge decided that the Respondent had failed to respect the terms of the transfer agreement it had entered into with the Claimant on 24 August 2012.
9. 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 held that the Respondent has to pay to the Claimant the amount of EUR 700,000 plus
default interest of 5% p.a. on said amount as of 1 October 2013 until the date of effective payment.
10. 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 CHF 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).
11. In respect of the above, and taking into account that the Claimant is the successful party in the present proceedings, the Single Judge concluded that the Respondent has to bear the full costs of the current proceedings before FIFA.
12. 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 700,000. Consequently, the Single Judge concluded that the maximum amount of costs of the proceedings corresponds to CHF 25,000.
13. In conclusion, taking into account the degree of success as well as that the Respondent never took stance in the procedure, the Single Judge of the Players’ Status Committee determined the costs of the current proceedings to CHF 17,000 and decided that said amount has to be paid by the Respondent.
*****
III. Decision of the Single Judge of the Players’ Status Committee
1. The claim of the Claimant, Club A, is partially accepted.
2. The Respondent, Club C, has to pay to the Claimant, within 30 days as from the date of notification of this decision, the amount of EUR 700,000 plus 5% interest p.a. on said amount as of 1 October 2013 until the date of effective payment.
3. If the aforementioned sum 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. Any further claim lodged by the Claimant is rejected.
5. The final amount of costs of the proceedings in the amount of CHF 17,000 are to be paid by the Respondent within 30 days as from the date of notification of the present decision as follows:
5.1. The amount of CHF 12,000 has to be paid to FIFA to the following bank account with reference to case nr.: UBS Zurich
Account number 366.677.01U (FIFA Players’ Status)
Clearing number 230
IBAN: CH27 0023 0230 3666 7701U
SWIFT: UBSWCHZH80A
5.2. The amount of CHF 5,000 has to be paid directly to the Claimant.
6. The Claimant is directed to inform the Respondent immediately and directly of the account number to which the remittances under points 2. and 5.2. above are 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
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