F.I.F.A. – Players’ Status Committee / Commissione per lo Status dei Calciatori – coach disputes / controversie allenatori (2017-2018) – fifa.com – atto non ufficiale – Decision of the Single Judge of the Players’ Status Committee passed in Zurich, Switzerland, 6 March 2018

Decision of the Single Judge of the

Players´ Status Committee

passed in Zurich, Switzerland, on 6 March 2018,

by

Mr Geoff Thompson (England)

Single Judge of the Players’ Status Committee,

on the claim presented by the coach

Coach A, from country A

as “Claimant”

against the club

Club B , from country B

as “Respondent”

regarding an employment-related contractual dispute

arisen between the parties

I. Facts of the case

1. On 29 June 2016, Coach A, from country A (hereinafter: the Claimant) and the Club B, from country B (hereinafter: the Respondent) concluded an employment contract (hereinafter: the contract), valid from 1 July 2016 until 30 June 2017 and by means of which the Respondent hired the Claimant as “Head Coach of the First Team of the Club”.

2. According to article 3 of the contract, the Claimant was entitled to receive from the Respondent a monthly salary of EUR 2,000, “payable at the 3rd day of each month, from July 2016 until June 2017”.

3. Article 4 of the contract stated that the Claimant was also entitled to receive from the Respondent a bonus in the amount of EUR 5,000 “in the event that after the end of the 2016-17 season the [Respondent] remains by any mean in the Superleague Division of of country B”, payable no later than the 3rd of June 2017 and a bonus in the amount of EUR 20,000 “in the event that after the end of the 2016-17 season the [Respondent] is qualified to play to the UEFA European Competitions (UEFA Champions League or UEFA Europa League)”, payable as well no later than the 3rd of June 2017.

4. Article 11 of the contract stated inter alia that the Respondent “will have the right to terminate the present contract only in the event that the First Team of the [Respondent] holds a position in the country B Superleague Table 2016-17 with a difference of 7 points less than any other Club which holds the 8th position of the Table”.

5. In accordance with article 12 of the contract, “the [Respondent] will have the right to renew the present contract for one more season (2017-18). For this reason the [Respondent] must inform the [Claimant] accordingly in writing no later than 30 April 2017. In case the [Respondent] decides to execute the right to renew the present contract for another season, then the [Respondent] must pay to the [Claimant] a monthly salary of four thousand Euro (4.000) net and the same amounts of bonuses agreed to paragraphs 4 and 5 above [i.e. point 3]”.

6. Lastly, article 13 of the contract stated inter alia that, “in the event that the [Claimant] wishes to terminate this contract at any time of the validity period and sign with another Club, he must pay to the [Respondent] the net amount of 100.000 Euro as a resignation clause”.

7. By means of an amendment to the contract (hereinafter: the amendment) dated 29 January 2017, the parties agreed to increase the monthly salary of the Claimant to EUR 4,000 starting from January 2017 until the end of the validity of the contract and, furthermore, maintained all the other terms of the contract.

8. On 24 July 2017, the Claimant lodged a claim in front of FIFA against the Respondent, alleging that the latter had partially failed to pay his salaries and bonuses until 30 June 2017.

9. In this respect, the Claimant explained that the Respondent informed him, by a written notice dated 25 April 2017, that it exercised its right to renew the contract for one additional season in accordance with article 12 of the contract.

10. Furthermore, the Claimant alleged that from 25 April 2017 until the date of claim, “the [Respondent] have not contacted the [Claimant] for any matter, have not paid him [i.e. the Claimant] the money owed to him according to the [contract] which has expired since 30 June 2017 and no new contract has been signed from both parties”.

11. In continuation, the Claimant alleged that, by means of a letter dated 20 June 2017, he reminded the Respondent of the payment of his alleged outstanding salaries and bonuses in the total amount of EUR 14,620, setting a 3 days’ time limit to remedy the default. Furthermore, according to the Claimant, the Respondent did not pay or reply to the Claimant.

12. Finally, in his claim, the Claimant alleged that “in the event that is deemed that any kind of contractual relationship still exists with the [Respondent], although the Contract signed on 29 June 2016 has expired on 30 June 2017, the [Claimant] by the present [claim] terminates hereby with immediate effect any contractual relationship with [the Respondent] with Just Cause consisted in non payment of the total amount 14.620 Euro (…)”.

13. Consequently, the Claimant requested from the Respondent the total amount of EUR 14,620 detailed as follows:

a) EUR 1,020 as partially outstanding salary for April 2017 due from 3 April 2017;

b) EUR 4,000 as outstanding salary for May 2017 due from 3 May 2017;

c) EUR 4,000 as outstanding salary for June 2017 due from 3 June 2017;

d) EUR 5,000 as bonuses “for staying [club] in the Kategoria Superiore of the Football Association of country B after the end of the season 2016-17”;

e) EUR 600 as bonus “for achieving 8 points according the Internal Regulations of the Club”

as well as costs to be borne by the Respondent.

14. In spite of having been invited to do so, the Respondent did not reply to the claim lodged against it.

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 which edition of the Rules Governing the Procedures of the Players’ Status Committee and the Dispute Resolution Chamber (hereinafter: Procedural Rules) was applicable to the matter at hand. In this respect, considering that the present matter was submitted to FIFA on 24 July 2017, the Single Judge concluded that the 2017 edition of the Procedural Rules is applicable in the matter at hand (cf. art. 21 of the Procedural Rules).

2. Subsequently, the Single Judge analysed which edition of the Regulations on the Status and Transfer of Players (hereinafter: “the Regulations”) should be applicable as to the substance of the matter. In this respect, he confirmed that the present matter was submitted to FIFA on 24 July 2017 and, therefore, concluded that the 2016 edition of the Regulations is applicable in the matter at hand as to the substance (cf. art. 26 par. 1 and par. 2 of the 2016 and 2018 editions of the Regulations).

3. With regard to his competence, the Single Judge confirmed that on the basis of art. 3 par. 1 and 2 of the Procedural Rules in connection with art. 23 par. 1 and 4 as well as art. 22 lit. c) of the 2016 edition of the Regulations, he was competent to deal with the present matter since it concerned an employment-related dispute between a club and a coach of an international dimension.

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 that he considered pertinent for the assessment of the matter at hand.

5. In doing so and to begin with, the Single Judge acknowledged that, on 29 June 2016, the Claimant and the Respondent concluded the contract valid from 1 July 2016 until 30 June 2017 by means of which the Claimant was hired by the Respondent as “Head Coach of the First Team of the Club” and entitled to receive from the latter a monthly salary of EUR 2,000, “payable at the 3rd day of each month, from July 2016 until June 2017”.

6. Subsequently, the Single Judge noted that on 29 January 2017, the above-mentioned parties concluded the amendment to the contract, by means of which they agreed to increase the monthly salary of the Claimant to EUR 4,000 starting from January 2017 until the end of the validity of the contract and, furthermore maintained all the other terms of the contract.

7. In continuation, the Single Judge took note that the Claimant maintained being entitled to receive from the Respondent the outstanding remuneration in the amount of EUR 14,620, alleging that the Respondent partially failed to pay his salaries and bonuses until 30 June 2017. In this respect, the Claimant requested from the Respondent the amount of EUR 1,020 as partial outstanding salary for April 2017 due from 3 April 2017, the amount of EUR 4,000 as outstanding salary for May 2017 due from 3 May 2017, the amount of EUR 4,000 as outstanding salary for June 2017 due from 3 June 2017, the amount of EUR 5,000 as outstanding bonuses “for staying [i.e. the Respondent] in the Kategoria Superiore of the Football Association of country B after the end of the season 2016-17” and the amount of EUR 600 as outstanding bonus “for achieving 8 points according the Internal Regulations of the [Respondent]”.

8. On the one hand, the Single Judge firstly observed that in support of his claim, the Claimant provided FIFA with a copy of the contract, the amendment, the contract renovation letter dated 25 April 2017 as well as the reminder dated 20 June 2017 sent to the Respondent in order to remedy the default.

9. On the other hand, the Single Judge remarked that the Respondent, for its part, had never submitted its position to the claim lodged against it by the Claimant, in spite of having been invited to do so. In this way, the Single Judge recalled that the Respondent renounced to its right of defence and, thus, accepted the allegations of the Claimant.

10. Furthermore, as a consequence of the aforementioned considerations, 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. In continuation, the Single Judge focused his attention to the content of article 12 of the contract which stated inter alia that,” the [Respondent] will have the right to renew the present contract for one more season (2017-18). For this reason the [Respondent] must inform the [Claimant] accordingly in writing no later than 30 April 2017. In case the [Respondent] decides to execute the right to renew the present contract for another season, then the [Respondent] must pay to the [Claimant] a monthly salary of four thousand Euro (4.000) net and the same amounts of bonuses agreed to paragraphs 4 and 5 above [i.e. point 3] as well as to the content of the amendment.

12. In this respect, the Single Judge noted that the Respondent had exercised its right to renew the contract in writing on 25 April 2017. However, the Single Judge understood that the Respondent stopped paying the Claimant’s salary as of the same moment, and that the Claimant considered the contract to have expired naturally as per 30 June 2017, which is supported by his claim for outstanding salaries until the end of June 2017 only. Consequently, the Single Judge held that it remained undisputed that the contract expired naturally on 30 June 2017.

13. Turning his attention to the contract and the content of the amendment, the Single Judge emphasised that, it remained undisputed that the Claimant is contractually entitled to receive from the Respondent a monthly salary of EUR 4,000 from January 2017 until the end of the validity of the contract, i.e. 30 June 2017.

14. Equally, the Single Judge concluded that, considering the payment of the salaries that were only partially made to the Claimant, the Respondent had breached its contractual obligations towards the Claimant and should, as a consequence, be liable to pay the outstanding amount of EUR 9,020 corresponding to the outstanding salaries for the months of April, May and June 2017 in accordance with the amendment.

15. Bearing in mind the aforementioned and the basic legal principle of pacta sunt servanda, which in essence means that agreements must be respected by the parties in good faith as well as bearing in mind the content of the above-mentioned contract and amendment, the Single Judge decided that the Respondent must pay to the Claimant the amount of EUR 9,020 as outstanding salaries in accordance with the amendment.

16. In relation with the Claimant’s request for the payment of the outstanding bonuses in the amounts of EUR 5,000 and EUR 600, the Single Judge decided to grant the amount of EUR 5,000 as outstanding bonus considering the Claimant’s claim and the content of clause 4 of the contract, however, rejected the amount of EUR 600, as there is no contractual basis for such claim and no evidence was submitted by the Claimant in this respect.

17. In conclusion, the Single Judge decided that the claim of the Claimant is partially accepted and held that the Respondent has to pay to the Claimant the total amount of EUR 14,020 as outstanding remuneration and that any further claims lodged by the Claimant are rejected.

18. 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 the proceedings before the Players’ Status Committee, including its Single Judge, 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.

19. In respect of the above, the Single Judge reiterated that the claim of the Claimant is partially accepted and that the Respondent is the party at fault. Therefore, the Single Judge concluded that the Respondent has to bear the entire costs of the current proceedings in front of FIFA.

20. 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. Consequently and taking into account that the total amount at dispute in the present matter is less than CHF 50,000, the Single Judge concluded that the maximum amount of costs of the proceedings corresponds to CHF 5,000.

21. In conclusion and in view of the circumstances of the present matter, the Single Judge determined the costs of the current proceedings to the amount of CHF 5,000, which shall be borne by the Respondent.

***

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 B, has to pay to the Claimant, Coach A, within 30 days as of the date of notification of the present decision, the total amount of EUR 14,020 as outstanding remuneration.

3. If the aforementioned amount is 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.

4. Any further claims lodged by the Claimant, Coach A, are rejected.

5. The final costs of the proceedings in the amount of CHF 5,000 are to be paid by the Respondent, Club B, within 30 days as from the notification of the present decision as follows:

5.1 The amount of CHF 4,000 has to be paid directly to FIFA to the following bank account with reference to case nr. XXX:

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 1,000 has to be paid directly to the Claimant, Coach A.

6. The Claimant, Coach A, is directed to inform the Respondent, Club B, immediately and directly of the account number to which the remittances under points 2. and 5.2 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 art. 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:

Omar Ongaro

Football Regulatory Director

Encl. CAS directives