F.I.F.A. – Dispute Resolution Chamber / Camera di Risoluzione delle Controversie – solidarity contribution/ contributo di solidarietà – (2018-2019) – fifa.com – atto non ufficiale – Decision 14 September 2018

Decision of the sub-committee of

the Dispute Resolution Chamber (DRC)

passed on 14 September 2018,

in the following composition:

Geoff Thompson (England), Chairman

Jérôme Perlemuter (France), member

Elvis Chetty (Seychelles), member

Stefano Sartori (Italy), member

Takuya Yamazaki (Japan), member

on the claim presented by the club,

Club A, Country B

as Claimant

against the club,

Club C, Country D

as Respondent

regarding training compensation in connection

with the player, Player E

I. Facts of the case

1. According to the player passport issued by the Football Federation of Country B (Football Federation F), the player, Player E (hereinafter: the player), born on 1 October 1993, was registered with its affiliated clubs as follows:

Club Registration dates Status Category

Club G

as from 9 September 2005 until 30 June 2006

Amateur

4

Club G

as from 14 September 2006 until 30 June 2007

Amateur

4

Club G

as from 14 September 2007 until 30 June 2008

Amateur

4

Club H

as from 4 August 2009 until 27 August 2010

Amateur

1

Club A

as from 27 August 2010 until 30 June 2011

Amateur

2

Club A

as from 12 August 2011 until 30 June 2012

Amateur

2

Club J

as from 22 August 2012 until 30 June 2013

Amateur

4

Club J

as from 21 August 2013 until 29 January 2014

Amateur

4

Club K

as from 30 January 2014 until 30 June 2014

Amateur

3

Club L

as from 22 August 2014 until 30 June 2015

Amateur

3

Club L

as from 19 August 2015 until 30 June 2016

Amateur

3

Club M

as from 29 July 2016 until 14 December 2016

Amateur

3

2. The football season in Country B runs from 1 July until 30 June of the following year.

3. According to the information contained in the Transfer Matching System (TMS), on 4 January 2017, the player was registered with the Club of Country D, Club C (hereinafter: the Respondent) as a professional. The player’s International Transfer Certificate (ITC) contained in TMS was issued by the Football Federation F in favour of the Football Federation of Country D (Football Federation N), indicating “Club M” as the player’s former club.

4. Also according to TMS, the Respondent belonged to the club category 2 at the time the player was registered with it.

5. On 12 December 2017, the Club of Country B, Club A (hereinafter: the Claimant), lodged a claim against the Respondent before FIFA asking to be awarded training compensation in the amount of EUR 151,108 for the first professional registration of the player with the Respondent.

6. In this context, the Claimant submitted a copy of an agreement (hereinafter: the agreement) it entered into with Club J dated 14 February 2017, which refers to an agreement of subsidiary that the aforementioned parties apparently entered into in 2011, by means of which Club J would register the Claimant’s players in order to train them and, in exchange, the Claimant would cover the expenses relating to coaches, education and care. Equally, clause 1 of the agreement stipulates that Club J transferred its entitlement to training compensation for the player to the Claimant. Similarly, clause 3 of the agreement stipulates that the Claimant would pay Club J 3% of the amount received as training compensation for players that, in accordance with the agreement of subsidiary, have been registered as non-professional with the 3rd division team of Club J.

7. In light of the foregoing, the Claimant stated that it is entitled to receive training compensation for the period of time during which the player was registered with both the Claimant and Club J.

8. In spite of having been invited to do so, the Respondent did not reply to the Claimant’s claim.

II. Considerations of the sub-committee of the DRC

1. First of all, the sub-committee of the Dispute Resolution Chamber (hereinafter also referred to as the sub-committee) analysed whether it was competent to deal with the case at hand. In this respect, it took note that the present matter was submitted to FIFA on 12 December 2017. Consequently, the 2017 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 matter at hand (cf. art. 21 of the Procedural Rules).

2. Subsequently, the sub-committee referred to art. 3 of the Procedural Rules, which states that the Dispute Resolution Chamber shall examine its jurisdiction in light of arts. 22 to 24 of the Regulations on the Status and Transfer of Players (edition 2018). In accordance with art. 3 of Annexe 6 in conjunction with art. 24 par. 3 and art. 22 lit. d) of the Regulations on the Status and Transfer of Players, the sub-committee is competent to decide on the present dispute relating to training compensation between clubs belonging to different associations handled through TMS.

3. Furthermore, the sub-committee 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, it confirmed that in accordance with art. 26 par. 1 and 2 of the Regulations on the Status and Transfer of Players (2018), and considering that the player was registered with the Respondent on 4 January 2017, the 2016 edition of the Regulations on the Status and Transfer of Players (hereinafter: the Regulations) is applicable to the matter at hand as to the substance.

4. Its competence and the applicable regulations having been established, the sub-committee entered into the substance of the matter. The sub-committee started by acknowledging the above-mentioned facts of the case as well as the documentation on file. However, the sub-committee emphasized that in the following considerations it will refer only to the facts, arguments and documentary evidence which it considered pertinent for the assessment of the matter at hand. In particular, the sub-committee recalled that in accordance with art. 6 par. 3 of Annexe 3 of the Regulations, FIFA may use, within the scope of proceedings pertaining to the application of the Regulations, any documentation or evidence generated or contained in the Transfer Matching System (TMS).

5. First of all, the sub-committee took note that the Claimant maintained that it is entitled to receive training compensation from the Respondent in the amount of EUR 151,108, indicating that the player had signed his first professional contract with the Respondent before the end of the season of his 23rd birthday.

6. Furthermore, the sub-committee took into account that the Respondent never took position in the present matter, although having been invited to do so by FIFA via TMS in accordance with art. 7 par. 1 of Annexe 6 of the Regulations. Therefore, the sub-committee deemed that, in this way, the Respondent renounced to its right to defence and accepted the allegations of the Claimant.

7. Furthermore, as a consequence of the aforementioned consideration, the sub-committee established that, in accordance with art. 9 par. 3 of the Procedural Rules in combination with art. 7 par. 3 of Annexe 6 of the Regulations, it shall take a decision upon the basis of the documents already on file.

8. Having established the above, the sub-committee referred to the rules applicable to matters regarding training compensation and stated that, as established in art. 20 of the Regulations as well as in art. 2 par. 1 of Annexe 4 of the Regulations, training compensation is payable, as a general rule, when a player is registered for the first time as a professional before the end of the season of the player’s 23rd birthday or when a professional is transferred between clubs of two different associations before the end of the season of the player’s 23rd birthday. In case the player is registered for the first time as a professional, art. 3 par. 1 sent. 1 of Annexe 4 of the Regulations sets forth that the club with which the player is registered is responsible for paying training compensation within 30 days of registration to every club with which the player has previously been registered and that has contributed to his training starting from the season of his 12th birthday.

9. With respect to the case at hand, taking into account the details set out in the relevant player passport issued by the Football Federation F, the sub-committee established that the player had at all times been registered as an amateur in Country B prior to his registration as a professional with the Respondent.

10. The aforementioned having been established, the sub-committee referred to art. 6 of Annexe 4 of the Regulations, which contains special provisions regarding players moving from one association to another association inside the territory of the European Union (EU)/European Economic Area (EEA). In this regard, the sub-committee indicated that, since the player moved from one association to another association inside the territory of the EU, said article is applicable. Hence, the sub-committee concluded that art. 6 par. 3 of Annexe 4 of the Regulations applies in the case at hand as lex specialis.

11. However, in this regard, the sub-committee pointed out that, in casu, a possible obligation to offer the player a contract in compliance with art. 6 par. 3 of Annexe 4 of the Regulations would in principle lie with the former club of the player and not with the Claimant. Indeed, according to the said art. 6 par. 3, inter alia, if the former club does not offer the player a contract, no training compensation is payable unless the former club can justify that it is entitled to such compensation. As further stated in art. 6 par. 3 of Annexe 4 of the Regulations, said provision is without prejudice to the right of training compensation of the player’s previous club(s).

12. On account of the above considerations, the sub-committee decided that the Claimant is entitled to receive training compensation from the Respondent for the player in accordance with art. 2 par. 1 (i) of Annexe 4 of the Regulations.

13. Turning its attention to the calculation of the amount of training compensation payable by the Respondent to the Claimant, the sub-committee recalled that the player was born on 1 October 1993 and was registered with the Claimant as from 27 August 2010 until 30 June 2011 and as from 12 August 2011 until 30 June 2012 in accordance with the player passport issued by the Football Federation F.

14. In this context, the sub-committee noted that the Claimant maintains that it is entitled to receive training compensation for the period of time the player was registered both with the Claimant as well as with the Club of Country B, Club J, on the basis of an agreement of subsidiary allegedly concluded by said parties in 2011.

15. However, without analysing as to whether the Claimant had corroborated such claim with sufficient documentary evidence, the sub-committee concurred that it can only take into consideration the official player passport issued by the Football Federation F in accordance with the Regulations when establishing the amount payable as training compensation to the Claimant. The sub-committee agreed that any arrangements made between the training clubs, in particular the agreement signed by the Claimant and Club J, cannot be considered in this regard.

16. On account of the above and in accordance with art. 20 in combination with Annexe 4 of the Regulations, the sub-committee established that the Claimant is entitled to receive training compensation for the period of time it registered the player as indicated in the relevant player passport, i.e. as from 27 August 2010 until 30 June 2011 and as from 12 August 2011 until 30 June 2012.

17. In this context, the sub-committee referred to the FIFA circular no. 1537 dated 3 May 2016 which provides details for the calculation of training compensation as well as to art. 5 paras. 1 and 2 of Annexe 4 of the Regulations, which stipulate that as a general rule, to calculate the training compensation due to a player’s former club, it is necessary to take the costs that would have been incurred by the new club if it had trained the player itself. Furthermore, the sub-committee referred to art. 6 of Annexe 4 of the Regulations which contains special provisions in case a player moves from a lower to a higher category club or from a higher to a lower category club within the territory of the EU/EEA. However, since in the matter at hand both clubs belong to the same category, this provision is irrelevant in this context.

18. In continuation, the sub-committee took into account that both the Claimant and the Respondent belonged to the category 2 within UEFA, which corresponds to the amount of EUR 60,000 per year, and that the player, born on 1 October 1993, was registered with the Claimant as from as from 27 August 2010 until 30 June 2011 and as from 12 August 2011 until 30 June 2012, i.e. during 10 months of the season of the player’s 17th birthday as well as 11 months of the season of his 18th birthday. In view of the foregoing, the DRC judge decided that the Respondent has to pay the amount of EUR 105,000 to the Claimant as training compensation.

19. In view of all of the above, the sub-committee decided to partially accept the claim of the Claimant and held that the Respondent is liable to pay the amount of EUR 105,000 to the Claimant as training compensation in relation to the first professional registration of the player with the Respondent.

20. Lastly, the sub-committee 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 DRC relating to disputes regarding training compensation, costs in the maximum amount of CHF 25,000 are levied. It is further stipulated that the costs are to be borne in consideration of the parties’ degree of success in the proceedings and that, in accordance with Annex A of the Procedural Rules, the costs of the proceedings are to be levied on the basis of the amount in dispute.

21. In respect of the above, the sub-committee held that the amount to be taken into consideration in the present proceedings is EUR 151,108 related to the claim of the Claimant. Consequently, the Chamber concluded that the maximum amount of costs of the proceedings corresponds to CHF 20,000 (cf. table in Annex A).

22. As a result, the Chamber determined the costs of the current proceedings to the amount of CHF 20,000, which, considering the degree of success, shall be split between the parties.

*****

III. Decision of the sub-committee of the DRC

1. The claim of the Claimant, Club A, is partially accepted.

2. The Respondent, Club C, has to pay to the Claimant the amount of EUR 105,000 within 30 days as from the date of notification of this decision.

3. In the event that the aforementioned sum is not paid by the Respondent within the stated time limit, interest of 5% p.a. falls due as of expiry of the stipulated 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 claim lodged by the Claimant is rejected.

5. The final costs of the proceedings in the amount of CHF 20,000 are to be paid, within 30 days of notification of the present decision, to FIFA to the following bank account with reference to case no. XXX:

UBS Zurich

Account number 366.677.01U (FIFA Players’ Status)

Clearing number 230

IBAN: CH 27 0023 0230 3666 7701U

SWIFT: UBSWCHZH80A as follows:

5.1. The amount of CHF 16,000 has to be paid by the Respondent;

5.2. The amount of CHF 4,000 has to be paid by the Claimant, which amount has already been paid by the Claimant to FIFA as an advance of costs at the start of the proceedings.

6. The Claimant is directed to inform the Respondent immediately and directly of the account number to which the remittance under point 2. above is to be made and to notify the sub-committee of the DRC 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 sub-committee of the DRC:

Omar Ongaro

Football Regulatory Director

Encl.: CAS directives