F.I.F.A. – Dispute Resolution Chamber / Camera di Risoluzione delle Controversie – solidarity contribution/ contributo di solidarietà – (2019-2020) – fifa.com – atto non ufficiale – Decision 26 July 2019

Decision of the

Single Judge of the sub-committee of the

Dispute Resolution Chamber (DRC)

passed in Zurich, Switzerland, on 26 July 2019,

by Johan van Gaalen (South Africa),

Single Judge of the sub-committee of the DRC,

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 Federation of Country B, the player, Player E (hereinafter: the Player), born on 20 June 1997, was registered with the club of Country B, Club A (hereinafter: the Claimant), as of 1 June 2016 until 31 December 2017.

2. The football seasons in Country B during the relevant period of time ran as follows: from 1 January until 31 December.

3. According to the information contained in the Transfer Matching System (TMS), the player was registered with the club of Country D, Club C, at that time called Club F, (hereinafter: the Respondent), on 17 July 2018, which engaged the player “out of contract free of payment” directly from the Claimant.

4. Equally, according to the information contained in TMS, the Respondent belonged to the category II (indicative amount of EUR 60,000 per year within UEFA) at the moment that the player was registered with it.

5. On 1 April 2019, the Claimant lodged a claim in front of FIFA requesting training compensation for the period of 1 June 2016 until 31 December 2016 and 1 January 2017 until 31 December 2017 on the ground that the transfer occurred before the end of the season of the player’s 23rd birthday. In particular, the Claimant requested EUR 95,178, plus 5% interest as from the due date.

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 sub-committee of the DRC

1. First of all, the Single Judge of the sub-committee of the DRC (hereinafter also: the Single Judge) analysed whether he was competent to deal with the case at hand. In this respect, he took note that the present matter was submitted to FIFA on 1 April 2019. Consequently, the 2018 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 2018 edition of the Procedural Rules).

2. Subsequently, the Single Judge referred to art. 3 par. 2 of the Procedural Rules, which states that he shall examine his jurisdiction in light of art. 24 par. 2 of the Regulations on the Status and Transfer of Players (edition June 2019). In accordance with art. 3 of Annexe 6 in conjunction with art. 24 and art. 22 lit. d) of the Regulations on the Status and Transfer of Players, the Single Judge is competent to decide on the present dispute relating to training compensation between clubs belonging to different associations.

3. Furthermore, 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 confirmed that in accordance with art. 26 par. 1 and 2 of said regulations (edition June 2019) and considering that the player was registered with the Respondent on 17 July 2018, the June 2018 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. The competence of the Single Judge and the applicable regulations having been established, and entering into the substance of the matter, the Single Judge started by acknowledging the above-mentioned facts as well as the documentation 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. First of all, the Single Judge took note that the Claimant maintained that it is entitled to receive training compensation from the Respondent in the amount of EUR 95,178, indicating that the transfer of the player occurred before the end of the season of his 23rd birthday.

6. Furthermore, the Single Judge duly noted that the Respondent never took position in the present matter, although having been invited to do so by FIFA. Therefore, the Single Judge deemed that, in this way, the Respondent renounced its right of defence and accepted the allegations of the Claimant.

7. As a consequence of the aforementioned consideration, the Single Judge established that, in accordance with art. 9 par. 3 of the Procedural Rules, he shall take a decision upon the basis of the documents on file.

8. Having established the above, the Single Judge referred to the rules applicable to training compensation and stated that, as established in art. 1 par. 1 of Annexe 4 in combination with art. 2 par. 1 lit. ii. of Annexe 4 of the Regulations, training compensation is payable, as a general rule, for training incurred between the ages of 12 and 21, 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 of a subsequent transfer of a professional, art. 3 par. 1 of Annexe 4 of the Regulations sets forth that the club with which the player is registered is responsible for paying training compensation to the former club, for the time the player was effectively trained by the latter, within 30 days of registration.

9. Reverting to the facts of the matter at hand, and based on the documentation provided by the Federation of Country B and the information contained in TMS, the Single Judge concluded that it could indeed be established that the player had been registered with the Claimant from 1 June 2016 until 31 December 2017, indicated by the Claimant as the seasons of the player’s 19th and 20th birthday.

10. In view of the foregoing considerations, the Single Judge concluded that it can be established that the player was subsequently transfered as professional between two clubs of two different associations before the end of the season of his 23rd birthday and, thus, the Claimant is entitled to receive training compensation from the Respondent.

11. Subsequently, the Single Judge considered that he had to determine which should be the relevant amount of training compensation to be paid by the Respondent to the Claimant. In this regard, the Single Judge went on to establish the proper calculation of the relevant training compensation due to the Claimant.

12. To that end, the Single Judge referred to art. 5 par. 1 and par. 2 of Annexe 4 of the Regulations, which stipulate that, as a general rule, to calculate the training compensation, it is necessary to take the costs that would have been incurred by the new club if it had trained the player itself.

13. In continuation, the Single Judge recalled that the player was born on 20 June 1997 and was registered with the Claimant from 1 June 2016 until 31 December 2017. Furthermore, the Single Judge noted that the player was subsequently transferred from the Claimant to the Respondent.

14. On account of the above, the Single Judge considered that the Claimant is, thus, entitled to receive training compensation for the period as from1 June 2016 until 31 December 2017, i.e. during 7 months of the season of the player’s 19th birthday and as from 1 January 2017 until 31 December 2017, i.e. during 12 months of the season of the player’s 20th birthday.

15. Furthermore, the Single Judge recalled that, according to the information contained in the TMS, the player was registered with the Respondent on 17 July 2018.

16. Equally, the Single Judge recalled that, according to the information contained in TMS, the Respondent belonged to the category II at the moment of the player’s registration with it (UEFA indicative amount of EUR 60,000 per year).

17. In view of all of the above, the Single Judge decided to partially accept the claim of the Claimant and held that the Respondent is liable to pay the amount of EUR 95,000 to the Claimant as training compensation in relation to the registration of the player with the Respondent.

18. Moreover, taking into consideration the Claimant’s claim as well as art. 3 par. 2 of Annexe 4 of the Regulations, the Single Judge decided that the Respondent has to pay, in conformity with the longstanding practice of the DRC, interest of 5% p.a. over the amount payable as training compensation as from 17 August 2018 until the date of effective payment.

19. 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 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 Annexe A of the Procedural Rules, the costs of the proceedings are to be levied on the basis of the amount in dispute.

20. In respect of the above, the Single Judge held that the amount to be taken into consideration in the present proceedings is EUR 95,178 related to the claim of the Claimant. Consequently, the Single Judge concluded that the maximum amount of costs of the proceedings corresponds to CHF 5,000 (cf. table in Annexe A of the Procedural Rules).

21. As a result, considering the degree of success as well as that the Respondent never replied to the claim, the Single Judge determined the final costs of the current proceedings to the amount of CHF 5,000 to be borne by the Respondent.

22. 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.

23. 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.

24. Therefore, bearing in mind the above, the Single Judge decided that, in the event that the Respondent does not pay the amounts 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.

25. 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 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 95,000, plus 5% interest p.a. on said amount as of 17 August 2018 until the date of effective payment.

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

4. The Claimant is directed to inform the Respondent, immediately and directly, of the relevant bank account to which the Respondent must pay the amount mentioned under point 2. above.

5. The Respondent shall provide evidence of payment of the due amount in accordance with point 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).

6. In the event that the amount due, plus interest, in accordance with point 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).

7. The ban mentioned in point 6. above will be lifted immediately and prior to its complete serving, once the due amount is paid.

8. 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.

9. The final costs of the proceedings in the amount of CHF 10,000 are to be paid by the Respondent within 45 days as from the date of notification of the present decision as follows:

9.1. The amount of CHF 3,000 has to be paid to the Claimant.

9.2. The amount of CHF 7,000 has to be paid to FIFA to the following bank account with reference to case nr. XXX XXXX/XXX:

UBS Zurich

Account number 366.677.01U (FIFA Players’ Status)

Clearing number 230

IBAN: CH27 0023 0230 3666 7701U

SWIFT: UBSWCHZH80A

10. 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 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

e-mail: info@tas-cas.org

For the Single Judge of the

sub-committee of the DRC:

Emilio García Silvero

Chief Legal & Compliance Officer

Encl. CAS directives