F.I.F.A. – Players’ Status Committee / Commissione per lo Status dei Calciatori – players’ and match agents disputes / controversie agenti di calciatori – (2018-2019) – fifa.com – atto non ufficiale – Decision of the Single Judge of the Players’ Status Committee passed in Zurich, Switzerland, on 24 June 2019

Decision of the Single Judge of the Players’ Status Committee

passed on 24 June 2019,

by

Mr 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 in connection with overdue payables

I. Facts of the case

1. On 23 August 2018, the club of Country B, Club A (hereinafter: Claimant), and the club of Country D, Club C (hereinafter: Respondent) signed a transfer agreement regarding the transfer of the player, Player E (hereinafter: player) from the Claimant to the Respondent.

2. In accordance with the transfer agreement, the Respondent undertook to pay to the Claimant the total amount of EUR 400,000, payable in two instalments as follows:

- EUR 260,000, payable upon the fulfilment of certain conditions, however by no later than 30 January 2019; and

- EUR 140,000, payable by no later than 15 July 2019.

3. After previously having put the Respondent in default on 13 February, 15 February and 1 March 2019, by correspondence dated 9 April 2019, the Claimant put the Respondent in default of payment of the amount of EUR 260,000 setting an 11 days’ time limit in order to remedy the default.

4. On 19 March 2019, and completed on 7 May 2019, the Claimant lodged a claim against the Respondent in front of FIFA asking that the Respondent be ordered to pay to it overdue payables in the amount of EUR 260,000 corresponding to the first instalment that according to the Claimant fell due on 25 January 2019, the relevant conditions allegedly having been fulfilled by then.

5. In addition, the Claimant requested to be awarded interest of 5% p.a. as from 25 January 2019 until the date of effective payment.

6. In spite of having been invited to do so, the Respondent did not reply to the 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: 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 19 March 2019. Consequently, the 2018 edition of the Rules Governing the Procedures of the Players’ Status Committee and the Dispute Resolution Chamber (hereinafter: Procedural Rules) is applicable to the matter at hand (cf. art. 21 of the Procedural Rules).

Player E (Club A, Country B / Club C, Country D) Page 3 of 9

2. Subsequently, the Single Judge referred to art. 3 par. 2 and par. 3 of the Procedural Rules and confirmed that in accordance with art. 23 par. 1 and par. 4 in conjunction with art. 22 lit. f of the Regulations on the Status and Transfer of Players (edition June 2018) he is competent to deal with the present matter, which concerns a dispute between two clubs affiliated to different associations.

3. Furthermore, the Single Judge analysed which regulations should be applicable as to the substance of the matter. In this respect, he confirmed that in accordance with art. 26 par. 1 and par. 2 of the Regulations on the Status and Transfer of Players (edition June 2018), and considering that the present claim was lodged on 19 March 2019, the June 2018 edition of said regulations (hereinafter: Regulations) is applicable to the matter at hand as to the substance.

4. The competence of the Single Judge and the applicable regulations having been established, the Single Judge entered into the substance of the matter. In this respect, the Single Judge started by acknowledging all the above-mentioned facts as well as the arguments and the documentation on 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. Having said this, the Single Judge acknowledged that the Claimant and the Respondent signed a transfer agreement, in accordance with which the Claimant was entitled to receive from the Respondent the total amount of EUR 400,000, payable in two instalments: EUR 260,000 payable upon the fulfilment of certain conditions, however, by no later than 30 January 2019 and EUR 140,000 by no later than 15 July 2019.

6. The Single Judge further acknowledged that the Claimant lodged a claim against the Respondent in front of FIFA, maintaining that the Respondent has overdue payables towards it in the total amount of EUR 260,000 corresponding to the first instalment of the transfer fee.

7. In this context, the Single Judge took particular note of the fact that, on 9 April 2019, the Claimant put the Respondent in default of payment of the amount of EUR 260,000, setting an 11 days’ time limit in order to remedy the default.

8. Consequently, the Single Judge concluded that the Claimant had duly proceeded in accordance with art. 12bis par. 3 of the Regulations, which stipulates that the creditor (player or club) must have put the debtor club in default in writing and have granted a deadline of at least ten days for the debtor club to comply with its financial obligations.

9. Subsequently, the Single Judge took into account that the Respondent failed to present its response to the claim of the Claimant, in spite of having been invited to do so. In this way, the Single Judge considered that the Respondent renounced its right to defence and thus accepted the allegations of the Claimant.

10. Furthermore, as a consequence of the aforementioned consideration, the Single Judge concurred 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, in other words, upon the statements and documents presented by the Claimant.

11. Having said this, the Single Judge acknowledged that, in accordance with the transfer agreement provided by the Claimant, the Respondent was obliged to pay to the Claimant the amount of EUR 260,000 by no later than 30 January 2019.

12. Taking into account the documentation presented by the Claimant in support of its petition, the Single Judge concluded that the Claimant had substantiated its claim pertaining to overdue payables in the amount of EUR 260,000 with sufficient documentary evidence.

13. On account of the aforementioned considerations, the Single Judge established that the Respondent failed to remit the total amount of EUR 260,000 to the Claimant.

14. In addition, the Single Judge established that the Respondent had delayed a due payment for more than 30 days without a prima facie contractual basis.

15. Consequently, the Single Judge decided that, in accordance with the general legal principle of pacta sunt servanda, the Respondent is liable to pay to the Claimant overdue payables in the total amount of EUR 260,000.

16. In addition, taking into account the Claimant’s request as well as the ultimate contractual due date for payment of the relevant instalment, the Single Judge decided that the Respondent must pay to the Claimant interest of 5% p.a. on the amount of EUR 260,000 as from 31 January 2019 until the date of effective payment.

17. The Single Judge decided that any further claim lodged by the Claimant is rejected.

18. In continuation, taking into account the consideration under number II./14. above, the Single Judge referred to art.12bis par. 2 of the Regulations which stipulates that any club found to have delayed a due payment for more than 30 days without a prima facie contractual basis may be sanctioned in accordance with art. 12bis par. 4 of the Regulations.

19. The Single Judge established that in virtue of art. 12bis par. 4 of the Regulations, he has competence to impose sanctions on the Respondent. In this context, the Single Judge highlighted that within the past 2 years the Respondent had already been found to have delayed a due payment for more than 30 days without a prima facie contractual basis, as a result of which, on 3 May 2019, a fine had been imposed on the Respondent by the Single Judge of the Players’ Status Committee.

20. Moreover, the Single Judge referred to art. 12bis par. 6 of the Regulations, which establishes that a repeated offence will be considered as an aggravating circumstance and lead to a more severe penalty.

21. Bearing in mind the above and taking into account art. 12bis par. 5 of the Regulations, according to which sanctions provided for in par. 4 of art. 12bis may be applied cumulatively, the Single Judge decided to impose a reprimand as well as a proportionally more severe fine on the Respondent in accordance with art. 12bis par. 4 lit. b) and lit. c) of the Regulations, respectively. On account of the above and taking into consideration the amount due of EUR 260,000, the Single Judge regarded a fine amounting to CHF 20,000 as appropriate and hence decided to impose said fine on the Respondent.

22. In continuation, 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. Said art. 18 par. 1 of the Procedural Rules further states that the costs are to be borne in consideration of the parties’ degree of success in the proceedings.

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. On that basis, the Single Judge held that the amount to be taken into consideration in the present proceedings is EUR 260,000. Consequently, the Single Judge concluded that the maximum amount of costs of the proceedings corresponds to CHF 25,000.

24. Taking into consideration that the Claimant is the successful party and considering the particular circumstances of the present matter, the Single Judge determined the costs of the current proceedings to the amount of CHF 25,000, which are to be borne entirely by the Respondent.

25. Furthermore, taking into account the consideration under number II./3. above, the Single Judge referred to par. 1 and 2 of art. 24bis of the Regulations, which stipulate that, with its decision, the pertinent FIFA deciding body shall also rule on the consequences deriving from the failure of the concerned party to pay the relevant amounts of outstanding remuneration and/or compensation in due time.

26. In this regard, the Single Judge pointed out that, against clubs, the consequence of the failure to pay the relevant amounts in due time shall consist of a ban from registering any new players, either nationally or internationally, up until the due amounts are paid and for the maximum duration of three entire and consecutive registration periods.

27. Therefore, bearing in mind the above, the Single Judge decided that, in the event that the Respondent does not pay the amount due to the Claimant within 45 days as from the moment in which the Claimant, following the notification of the present decision, communicates the relevant bank details to the Respondent, a ban from registering any new players, either nationally or internationally, for the maximum duration of three entire and consecutive registration periods shall become effective on the Respondent in accordance with art. 24bis par. 2 and 4 of the Regulations.

28. Finally, the Single Judge recalled that the above-mentioned ban will be lifted immediately and prior to its complete serving upon payment of the due amounts, in accordance with art. 24bis par. 3 of the Regulations.

* * * *

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 overdue payables in the amount of EUR 260,000 plus 5% interest p.a. as from 31 January 2019 until the date of effective payment.

3. Any further claim lodged by the Claimant is rejected.

4. The Respondent is ordered to pay a fine in the amount of CHF 20,000. The fine is to be paid within 45 days of notification of the present decision to FIFA to the following bank account with reference to case Nr. XXXXXXX/XXX:

UBS Zurich

Account number 366.677.01U (FIFA Players’ Status)

Clearing number 230

IBAN: CH27 0023 0230 3666 7701U

SWIFT: UBSWCHZH80A

5. A reprimand is imposed on the Respondent.

6. The Claimant is directed to inform the Respondent, immediately and directly, preferably to the e-mail address as indicated on the cover letter of the present decision, of the relevant bank account to which the Respondent must pay the amount mentioned under point III./2. above.

7. The Respondent shall provide evidence of payment of the due amount in accordance with point III./2. above to FIFA to the e-mail address psdfifa@fifa.org, duly translated, if need be, into one of the official FIFA languages (English, French, German, Spanish).

8. In the event that the amount due plus interest in accordance with point III./2. above is not paid by the Respondent within 45 days as from the notification by the Claimant of the relevant bank details to the Respondent, the Respondent shall be banned from registering any new players, either nationally or internationally, up until the due amount is paid and for the maximum duration of three entire and consecutive registration periods (cf. art. 24bis of the Regulations on the Status and Transfer of Players).

9. The ban mentioned in point 8. above will be lifted immediately and prior to its complete serving, once the due amount is paid.

10. In the event that the aforementioned sum plus interest is still not paid by the end of the ban of three entire and consecutive registration periods, the present matter shall be submitted, upon request, to FIFA’s Disciplinary Committee for consideration and a formal decision.

11. The final costs of the proceedings in the amount of CHF 25,000 are to be paid by the Respondent, within 45 days as from the date of notification of the present decision, as follows:

11.1. The amount of CHF 20,000 has to be paid to FIFA to above-mentioned bank account (cf. point III./4.) with reference to case Nr. XXXXXXX/XXX; and

11.2. The amount of CHF 5,000 has to be paid to the Claimant.

12. In the event that the aforementioned amount of costs is not paid within the stated time limit, the present matter shall be submitted, upon request, to FIFA’s Disciplinary Committee for consideration and a formal decision.

*****

Note relating to the motivated decision (legal remedy):

According to article 58 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

For the Single Judge

of the Players’ Status Committee:

Emilio García Silvero

Chief Legal Officer

Encl: CAS directives