F.I.F.A. – Commissione per lo Status dei Calciatori (2014-2015) – controversie tra società – ———- F.I.F.A. – Players’ Status Committee (2014-2015) – 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 14 January 2015, by Geoff Thompson (England) Single Judge of the Players’ Status Committee, on the claim presented by the club Club A, country B, as Claimant against the club Club C, country D, as Respondent regarding a contractual dispute between the parties and relating to the Player E I.

F.I.F.A. - Commissione per lo Status dei Calciatori (2014-2015) – controversie tra società – ---------- F.I.F.A. - Players’ Status Committee (2014-2015) – 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 14 January 2015, by Geoff Thompson (England) Single Judge of the Players’ Status Committee, on the claim presented by the club Club A, country B, as Claimant against the club Club C, country D, as Respondent regarding a contractual dispute between the parties and relating to the Player E I. Facts of the case 1. On 19 July 2013, the club from country B, Club A (hereinafter: the Claimant) and the club from country D, Club C (hereinafter: the Respondent) signed a transfer agreement for the transfer of the Player E (hereinafter: the player), from the Claimant to the Respondent. 2. Clause 2 of the transfer agreement stipulates, inter alia, that the Respondent shall pay to the Claimant a transfer fee amounting to EUR 2,200,000, payable as follows: - EUR 400,000 on 23 July 2013; - EUR 700,000 on 30 July 2013; and - EUR 1,100,000 on 30 January 2014. Furthermore, in the event of a late payment of the aforementioned transfer fee, the parties agreed upon an interest rate of 20% p.a., from the due date until the date of payment. 3. On 25 April 2014, the Claimant lodged a claim against the Respondent requesting the amount of EUR 1,100,000 in connection with the transfer of the player, plus an interest of 20% p.a. as from 23 July 2013 according to clause 2 of the transfer agreement. 4. In this context, the Claimant acknowledged receipt of the first and second instalments of the transfer fee, although held that the third instalment remains outstanding. 5. Furthermore, the Claimant stated that the Respondent justified the outstanding amount with the economic problems related to the reconstruction of the stadium for the FIFA World Cup 2014. In this respect, the Claimant asserted that the Respondent was well aware of the fact that it would have to rebuild its stadium and that, as a result, the delay in the late payment is unjustified. Furthermore, the Claimant is of the opinion that the interest rate of 20% p.a. shall be deemed reasonable and proportionate. 6. On 20 June 2014, the Respondent acknowledged the outstanding third instalment of the transfer fee. 7. However, the Respondent pointed out that the parties are involved in a different proceeding before the FIFA decision-making bodies in which the Respondent is the claimant and the Claimant the respondent for the payment of solidarity contribution. In this respect, the Respondent asserted that in spite of the fact that a formal decision was taken, the Claimant did not pay the due amount. Consequently, the Respondent informed that it has made positive efforts to resolve this situation and that it was willing to settle the present matter in an amicable way, “in addition to the [other case] that is inevitably associated with this matter”. 8. On 16 September 2014, the Claimant informed FIFA that no amicable settlement could be reached and, thus, reiterated its request. 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 whether he was competent to deal with the matter at hand. In this respect, he referred to art. 21 of the 2014, 2012 and 2008 editions of the Rules Governing the Procedures of the Players’ Status Committee and the Dispute Resolution Chamber. Consequently, and since the present matter was submitted to FIFA on 25 April 2014, the Single Judge concluded that the 2012 edition of the Rules Governing the Procedures of the Players’ Status Committee and the Dispute Resolution Chamber (hereinafter: the Procedural Rules) is applicable to the present matter. 2. 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 3 as well as art. 22 f) of the 2012 edition of the Regulations on the Status and Transfer of Players, he was competent to deal with the present matter since it concerned a dispute between two clubs affiliated to different associations. 3. Subsequently, 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 referred to art. 26 par. 1 of the 2014, 2012 and 2010 editions of the Regulations on the Status and Transfer of Players and again to the fact that the claim was lodged at FIFA on 25 April 2014. In view of this, the Single Judge concluded that the 2012 edition of the FIFA Regulations on the Status and Transfer of Players (hereinafter: the Regulations) is applicable to the matter as to the substance. 4. His competence and the applicable regulations having been established and entering into the substance of the matter, the Single Judge started by acknowledging the abovementioned facts as well as the arguments provided by the parties and the documentation contained in the file. However, the Single Judge emphasized that in the following consideration he will refer only to the facts, arguments and documentary evidence that he considered pertinent for the assessment of the matter at hand. 5. In this respect, and first of all, the Single Judge noted that the parties had concluded on 19 July 2013 a contract for the definitive transfer of the player from the Claimant to the Respondent, according to which the latter would pay a total amount of EUR 2,200,000 to the former in three instalments as follows: EUR 400,000 on 23 July 2013, EUR 700,000 on 30 July 2013 and EUR 1,100,000 on 30 January 2014. Furthermore, the Single Judge remarked that article 2.5 of the transfer agreement provided that in case the Respondent would fail to pay any of the aforementioned instalments, 20% interest p.a. will accrue on the outstanding amount until the date of effective payment. 6. Furthermore, the Single Judge reverted to the submissions of the parties and underlined, in particular, that the Respondent had acknowledged owing the amount of EUR 1,100,000 to the Claimant and had proposed to compensate a debt of the Claimant towards the Respondent in the amount of EUR 47,012 in an attempt to solve the matter amicably. In addition, the Single Judge underlined that, eventually, no amicable settlement was reached between the parties and consequently, the Claimant had requested FIFA to pass a formal decision in the present matter. 7. In view of the above and in accordance with the general principle of pacta sunt servanda, which in essence means that agreements must be respected by the parties in good faith, the Single Judge held that the Respondent must fulfil the obligation it entered into with the Claimant by means of the contract signed between the parties, and therefore, must pay to the Claimant the outstanding transfer compensation agreed upon for the transfer of the player. 8. In continuation and in view of the request of the Claimant for interest on the basis of article 2.5 of the transfer agreement, the Single Judge held that a penalty clause amounting to 20% of the outstanding amount per annum for late payment in relation to a total transfer compensation is to be considered as manifestly disproportionate and exorbitant, and as such, cannot be enforced. In view of the foregoing, the Single Judge held that the penalty clause contained in the transfer agreement concluded between the parties should be disregarded and that, as an alternative and in accordance with the longstanding practice of the Players’ Status Committee, the Respondent has to pay 5% default interest on the respective outstanding installments. 9. In view of all of the above, the Single Judge decided to partially accept the Claimant’s claim and held that the Respondent must pay to the Claimant the amount of EUR 1,100,000, plus interest at a rate of 5% p.a. on the aforementioned amount from 31 January 2014 until the date of effective payment. 10. 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 proceedings before the Players’ Status Committee including its Single Judge, costs in the maximum amount of CHF 25,000 are levied and which states that 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. 11. Taking into account that the responsibility of the failure to comply with the payment of the transfer compensation can entirely be attributed to the Respondent and that the claim of the Claimant has been almost fully accepted, the Single Judge concluded that the Respondent has to bear the costs of the current proceedings before FIFA. 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 over CHF 200,000. Consequently, the Single Judge concluded that the maximum amount of costs of the proceedings corresponds to CHF 25,000. 12. Considering the particular circumstances of the present matter, the Single Judge determined the costs of the current proceedings to the amount of CHF 20,000 and concluded that said amount has to be paid by the Respondent 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, 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 1,100,000, plus 5% interest p.a. as of 31 January 2014 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 20,000 is 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 15,000 has to be paid to FIFA to the following bank account with reference to case nr. xxxxxxxx: 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