F.I.F.A. – Commissione per lo Status dei Calciatori (2015-2016) – controversie allenatori –———- F.I.F.A. – Players’ Status Committee (2015-2016) – coach disputes – official version by www.fifa.com – Decision of the Single Judge of the Players’ Status Committee passed in Zurich, Switzerland, on 26 January 2016, by Geoff Thompson (England) Single Judge of the Players’ Status Committee, on the claim presented by the coach Coach A, country B as “Claimant” against the club Club C, country D as “Respondent” regarding a contractual dispute between the parties. I.

F.I.F.A. - Commissione per lo Status dei Calciatori (2015-2016) – controversie allenatori –---------- F.I.F.A. - Players' Status Committee (2015-2016) – coach disputes – official version by www.fifa.com – Decision of the Single Judge of the Players’ Status Committee passed in Zurich, Switzerland, on 26 January 2016, by Geoff Thompson (England) Single Judge of the Players’ Status Committee, on the claim presented by the coach Coach A, country B as “Claimant” against the club Club C, country D as “Respondent” regarding a contractual dispute between the parties. I. Facts of the case 1. On 8 May 2014, the coach from country B, Coach A (hereinafter: the Claimant) and the club from country D, Club C (hereinafter: the Respondent) entered into an employment contract (hereinafter: the contract), according to which the coach was employed by the Respondent as “First Football Team First Coach” from 1 June 2014 until 30 June 2016. 2. According to article 5.1 of the contract, the Claimant was entitled to receive from the Respondent the total amount of EUR 5,100,001 as follows: (i) “Signing fee of EUR 1 000 000 shall be paid on 30 June 2014; (ii) “A monthly salary of EUR 123 077 shall be paid on or before the end of each calendar month from June 2014 through June 2015; (iii) Signing fee of EUR 1 000 000 shall be paid on 30 June 2015; (iv) A monthly salary of EUR 125 000 shall be paid on or before the end of each calendar month from July 2015 through June 2016”. 3. Additionally, according to clause 5.2.1 of the contract, the Claimant was entitled to receive from the Respondent the following bonus payments: “For any match victory by Club C [i.e. the Respondent] in the League of country E, Champions League of country E or Cup of country E, the Coach [i.e. the Claimant] shall be entitled to receive a bonus payment equal to 150% of the bonus paid by Club C to one of the players at such time and for such win at the discretion of Club C in accordance to Club C?s the current Policy, which may be changed from time to time by Club C, without notice, at Club C?s sole discretion”. 4. Moreover, clause 6.2 of the contract stipulated the following: “If the coach?s [i.e. the Claimant] period of absence due to sickness or injury exceeds 90 working days, within the term, Club C [i.e. the Respondent] shall be entitled to terminate the contract. In such case, Club C shall have no liability for such termination. For the avoidance of doubt, in such case, Club C shall not be liable to make any payment to the coach under clause 8.4 of the contract”. 5. Clause 8 of the Contract established the following regarding the termination of the contract: “8.1 Notwithstanding anything to the contrary, this contract may be terminated in any of the following ways: (i) By mutual agreement of the parties; (ii) By either party upon 15 days notice in writing for just cause, in accordance with FIFA Regulations and FIFA Jurisprudence governing this matter; (iii) By Club C [i.e. the Respondent] immediately and at any time, in the event that the coach [i.e. the Claimant]: (a) Commits any material breach of any of his obligations contained in this contract and falls to remedy such breach within 5 days from being requested to do so in writing by Club C and/or; (b) Commits wilful misconduct by action or omission which causes serious harm to Club C, and/or; (c) Commits negligence which causes serious to Club C, and/or; (d) Enters into an employment contract with a third party for a period of time which overlaps fully or partially with the term and/or may interfere with the proper completion of his contract and/or the proper performance of the coach?s obligations under this contract. 8.2 In the event that any amount due to the coach under clause 5.1 of this contract is unpaid and becomes overdue for a period of time exceeding 90 days, the coach may send a notification to Club C by facsimile to Football Association of country E and by registered courier to the address of Club C (with acknowledgement of delivery) expressly requesting that the overdue amount to be paid within 30 days from the date of receipt by Club C of the default notice. In such case, in the event that Club C fails to pay the overdue amount within 30 days from the date of receipt of the default notice, the coach shall be entitled to terminate this contract with just cause. 8.3 Notwithstanding anything to the contrary, the parties hereby expressly and irrevocably agree that in the event that Club C terminates this contract under clause 8.1 (iii) of this contract and/or the coach terminates this contract without just cause (in accordance with the FIFA Regulations and FIFA jurisprudence governing this matter), the coach shall promptly pay to Club C, as compensation for the breach, the greater of: (i) EUR 1 000 000, or (ii) an amount equivalent to 50% of the remaining value of this contract, calculated by reference to the outstanding amounts payable under clause 5.1 of this contract, until the expiration of the term. 8.4 In the event that Club C terminates this contract during the term at any time prior to the 15th of June 2015, without just cause (in accordance with the FIFA Regulations and FIFA jurisprudence governing this matter), or the coach terminates this contract during the term at any time prior to the 15th June 2015, with just cause in accordance with clause 8.2 of this contract, Club C shall within 15 days from the date of such termination, pay to the coach as full and final breach of contract compensation: (i) The outstanding amounts payable under clause 5.1(ii) of this contract and (ii) EUR 1 250 000. However in the event that Club C terminates this contract without just cause on the 15th June 2015 or any time after the 15th June 2015, or the coach on 15th June 2015 or at any time after the 15th June 2015, terminates the contract with just cause in accordance with clause 8.2 of this contract, Club C shall, within 15 days from the date of such termination pay to the coach, as full and final breach of contract compensation, an amount equivalent to 50% of the remaining value of this contract, calculated by reference to the outstanding amounts payable under clause 5.1 of this contract, until the expiration of the term. Notwithstanding anything to the contrary, in the event that Club C terminates this contract in accordance with clause 6.2 of this contract, Club C shall not be liable to make any payments to the coach under clause 8.4 of this contract”. 6. On 28 September 2015, the Claimant lodged a claim with FIFA against the club, requesting the total amount of EUR 1,649,231, as follows: a. EUR 1,250,000 as compensation in accordance with clause 8.4 of the contract (i.e. 50% of the signing-on fee amounting to EUR 1,000,000 as well as 50% of EUR 1,500,000 representing the salaries from 1 July 2015 to 30 June 2016); b. EUR 369,231 corresponding to the outstanding salaries of April, May and June 2015; c. EUR 30,000 corresponding to the 3 wins (bonus) according to clause 5.2.1 of the contract. 7. According to the Claimant, the Respondent terminated the contract with immediate effect in writing on 15 June 2015 without just cause. 8. Although the Claimant sent a correspondence to the Respondent on 10 August 2015 requesting the outstanding salaries and compensation for the breach of contract, the Respondent never replied. 9. Despite having been invited to do so by FIFA, the Respondent did not respond to the Claimant’s claim. II. Considerations of the Single Judge of the Players? Status Committee 1. First of all, the Single Judge of the Players’ Status Committee (hereinafter also referred to as: the Single Judge) analysed whether he was competent to deal with the matter at hand. In this respect, he took note that the present matter was submitted to FIFA on 28 September 2015. Consequently, the Single Judge concluded that the 2015 edition of the Rules Governing the Procedures of the Players’ Status Committee and the Dispute Resolution (hereinafter: “the Procedural Rules”) is applicable to the matter in hand (cf. art. 21 of the Procedural Rules). 2. Subsequently, the Single Judge referred to art. 3 par. 1 and 2 of the Procedural Rules and confirmed that in accordance with art. 23 par. 1 and 3 in combination with art. 22 lit. c) of the 2015 edition of the Regulations on the Status and Transfer of Players, he is competent to deal with the matter at stake. 3. In continuation, the Single Judge analysed which edition of the Regulations on the Status and Transfer of Players should be applicable as to the substance of the matter. In this respect, he recalled that the claim was submitted to FIFA on 28 September 2015 and concluded that the 2015 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 (cf. art. 26 par. 1 and 2 of the Regulations). 4. His competence and the applicable regulations having been established, and entering into the substance of the matter, the Single Judge started his analysis by acknowledging the facts of the case and the arguments of the parties as well as the documents contained in the file. However, the Single Judge emphasised that in the following considerations he will refer only to the facts, arguments and documentary evidence, which he considered pertinent for the assessment of the matter at hand. 5. In this respect, the Single Judge first observed that the Respondent had never submitted its position to the claim lodged against it by the Claimant, despite having been asked to do so by FIFA. Therefore, the Single Judge concluded that, in this way, the Respondent had renounced to its right of defence and, thus, it had to be assumed that it had accepted the allegations of the Claimant. 6. Bearing in mind the aforementioned, 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 documents on file, in other words, upon the allegations and documents submitted by the Claimant. 7. In doing so and to begin with, the Single Judge noted that the Claimant and the Respondent had concluded a contract valid from 1 June 2014 until 1 June 2016, by means of which the Claimant was entitled to receive from the Respondent the total amount of EUR 5,100,001 (cf. point I.2/ above). Furthermore, the Single Judge acknowledged that, according to article 5.2.1 of the contract, the Claimant was entitled to receive from the Respondent further bonuses (cf. point I.3/ above). 8. In continuation, the Single Judge remarked that according to the Claimant, the Respondent terminated the contract in writing without any apparent reason, by means of a correspondence dated 15 June 2015. Consequently, the Single Judge duly took note that the Claimant requested the total amount of EUR 1,649,231, i.e. EUR 1,250,000 as compensation in accordance with clause 8.4 of the contract, EUR 369,231 corresponding to the outstanding salaries from April to June 2015 as well as EUR 30,000 corresponding to 3 wins (bonus) according to clause 5.2.1 of the contract. 9. In view of all the above, the Single Judge deemed that the first question to be addressed in the present matter was whether the contract had been terminated by the Respondent with or without just cause. 10. In this regard, the Single Judge turned his attention to the arguments of the Claimant and to the letter contained in the file sent by the Respondent to the Claimant on 15 June 2015, by means of which the Respondent terminated the contract with immediate effect, without any apparent reason. The Single Judge also recalled that the Respondent had not presented its position to the claim. As a result, the Single Judge established that the contractual relationship between the parties was terminated without just cause by means of the letter sent by the Respondent on 15 June 2015. 11. Having established the above-mentioned, the Single Judge went on to assess the potential financial consequences of the breach of the contractual relationship by the Respondent. 12. In this regard, the Single Judge focused his attention to the Claimant?s demand for the sum of EUR 369,231 representing outstanding salaries from April to June 2015. 13. In this regard, the Single Judge first referred to the contract and stressed that it provided for the Claimant to receive from the Respondent a monthly salary of EUR 123,077 from June 2014 until June 2015. 14. As a consequence, and in accordance with the general legal principle of pacta sunt servanda, which in essence means that agreements must be respected by the parties in good faith, the Single Judge decided that the Respondent is liable to pay to the Claimant the amounts which were outstanding under the contract at the moment of the termination, i.e. on 15 June 2015. 15. Therefore, the Single Judge decided that the sum of EUR 246,154 corresponding to the outstanding salaries of April and May 2015 has to be paid by the Respondent to the Claimant. 16. In continuation, the Single Judge turned his attention to the Claimant?s request for EUR 30,000 corresponding to 3-match victories bonuses according to clause 5.2.1 of the contract. In this respect, the Single Judge stated that the Claimant and the Respondent agreed in clause 5.2.1 certain bonuses “equal to 150% of the bonus paid by Club C [i.e. the Respondent] to one of the players […] in accordance with to Club C?s current policy”. In this context, the Single Judge noted that, according to article 12 par. 3 of the Procedural Rules which states that any party claiming a right on the basis of an alleged fact shall carry the burden of proof, such request had not been accompanied by any documentary evidence. Consequently, the Single Judge concluded that this part of the claimant’s claim could not be granted since it lacked of evidence. 17. Turning his attention to the compensation payable for the unilateral termination without just cause by the Respondent, the Single Judge referred to the content of the second part of article 8.4 of the contract which stated the following: “8.4 However in the event that Club C [i.e. the Respondent] terminates this contract without just cause on the 15th June 2015 or any time after the 15th June 2015, or the coach [i.e. the Claimant] on 15th June 2015 or at any time after the 15th June 2015, terminates the contract with just cause in accordance with clause 8.2 of this contract, Club C shall, within 15 days from the date of such termination pay to the coach, as full and final breach of contract compensation, an amount equivalent to 50% of the remaining value of this contract, calculated by reference to the outstanding amounts payable under clause 5.1 of this contract, until the expiration of the term”. 18. In this respect, the Single Judge pointed out that since the amount of compensation was contractually agreed by the parties, said amount of compensation should therefore be awarded to the Claimant as per article 8.4 of the contract which expressly provided in case of termination on or after 15 June 2015, for an amount equivalent to 50% of the remaining value of the contract. 19. Consequently, and taking into account that the contract was valid until 30 June 2016, the Single Judge decided that the Claimant was entitled to 50% of his salary for the period from 1 June 2015 until 30 June 2016 as compensation for the unilateral termination of the contract without just cause by the Respondent. The Single Judge held that such amount represented 50% of thirteen monthly salary payments, i.e. a total amount of EUR 1,623,077, as well as EUR 1,000,000 corresponding to the signing-on fee due on 30 June 2015. For the sake of good order, the Single Judge underlined that the salary of June 2015 was also part of the aforementioned compensation as it was due at the end of the month in question, i.e. after the termination by the Respondent of the contract. 20. In view of all the above-mentioned considerations, the Single Judge decided that the claim of the Claimant is partially accepted and that the Respondent has to pay to the Claimant the amount of EUR 246,154 as outstanding salaries as well as the sum of EUR 1,311,538 as compensation for breach of contract. 21. Finally, 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 the proceedings before the Players’ Status Committee costs in the maximum amount of CHF 25,000 are levied. The costs are to be borne in consideration of the parties’ degree of success in the proceedings and are normally to be paid by the unsuccessful party. 22. Considering that, in the case in hand, the Claimant?s claim was partially accepted and taking into account that the Respondent did not respond to the Claimant’s claim, the Single Judge concluded that the Respondent have to bear the costs of the current proceeding before FIFA. 23. 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. The amount in dispute to be taken into consideration in the present proceedings is over CHF 200,000. Therefore, the Single Judge concluded that the maximum amount of costs of the proceedings corresponds to CHF 25,000. 24. In view of the above, the Single Judge determined the costs of the current proceedings to the amount of CHF 25,000 and held that such costs have to be borne by the Respondent. Consequently, and in line with the aforementioned, the Single Judge decided that the Respondent must pay the amount of CHF 25,000 in order to cover the costs of the present proceedings. III. Decision of the Single Judge of the Players’ Status Committee 1. The claim of the Claimant, Coach A, is partially accepted. 2. The Respondent, Club C, has to pay to the Claimant, Coach A, within 30 days as from the date of notification of the present decision, the amount of EUR 246,154 as outstanding salaries. 3. Furthermore, the Respondent, Club C, has to pay to the Claimant, Coach A, within 30 days as from the date of notification of the present decision, the amount of EUR 1,311,538 as compensation for breach of contract. 4. If the aforementioned amounts are not paid within the aforementioned deadline, an interest rate of 5% per year will apply as of the expiry of the fixed time limit and the present matter shall be submitted, upon request, to FIFA’s Disciplinary Committee for consideration and a formal decision. 5. Any further claims lodged by the Claimant, Coach A, are rejected. 6. The Claimant, Coach A, is directed to inform the Respondent, Club C, immediately and directly of the account number to which the remittances under points 2. and 3. above are to be made and to notify the Players’ Status Committee of every payment received. 7. The total costs of the proceedings in the amount of CHF 25,000 are to be paid to FIFA, within 30 days as from the date of notification of the present decision, by the Respondent, Club C to the following bank account with reference to case nr. xxxxxxxxxx: UBS Zurich Account number 366.677.01U (FIFA Players’ Status) Clearing number 230 IBAN: CH27 0023 0230 3666 7701U SWIFT: UBSWCHZH80A ***** Note relating to the motivated decision (legal remedy): According to art. 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 Marco Villiger Deputy Secretary General
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