F.I.F.A. – Dispute Resolution Chamber / Camera di Risoluzione delle Controversie – overdue payables / debiti scaduti – (2017-2018) – fifa.com – atto non ufficiale – Decision 1 December 2017

Decision of the

Dispute Resolution Chamber

passed on 1 December 2017,

in the following composition:

Geoff Thompson (England), Chairman

Mario Gallavotti (Italy), member

Jon Newman (USA), member

on the claim presented by the player,

Player A, Country B

as Claimant

against the club,

Club C, Country D

as Respondent

regarding an employment-related dispute

between the parties in connection with overdue payables

I. Facts of the case

1. On a non-specified date, the Player of Country B, Player A (hereinafter: Claimant), and the Club of Country D, Club C (hereinafter: Respondent), signed an employment contract valid for the 2016-2017 season (hereinafter: the contract), “until the last official match”.

2. In accordance with art. 8 of the contract, the Respondent undertook to pay to the Claimant a remuneration of EUR 120,000, as follows:

a) EUR 24,000 as signing-on fee on the date of signature;

b) EUR 96,000 in ten instalments of EUR 9,600, payable on the 15th day of each month as from August 2016 until April 2017 and on 1 May 2017.

3. Furthermore, according to art. 9-1 of the contract, the Claimant was entitled to a bonus of EUR 15,000 in case he played fifteen official matches with the club, payable once the player “has completed his 20th match”.

4. By correspondence dated 31 July 2017, the Claimant put the Respondent in default of payment of EUR 96,170, composed of EUR 81,170 for outstanding salaries and EUR 15,000 for the bonus under art. 9-1 of the contract, setting a 10 days’ time limit in order to remedy the default.

5. On 18 July 2017, and completed on 30 August 2017, the Claimant lodged a claim against the Respondent in front of FIFA asking that the Respondent be ordered to pay to him overdue payables in the total amount of EUR 96,170 plus 5% interest p.a., as follows:

a) EUR 965 as remainder of the signing-on fee, plus interest as of 2 July 2016;

b) EUR 1,430 as remainder of the monthly salary of August 2016, plus interest as of 16 August 2016;

c) EUR 1,975 as remainder of the monthly salary of September 2016, plus interest as of 16 September 2016;

d) EUR 9,600 for the monthly salary of October 2016, plus interest as of 16 October 2016;

e) EUR 9,600 for the monthly salary of November 2016, plus interest as of 16 November 2016;

f) EUR 9,600 for the monthly salary of December 2016, plus interest as of 16 December 2016;

g) EUR 9,600 for the monthly salary of January 2017, plus interest as of 16 January 2017;

h) EUR 9,600 for the monthly salary of February 2017, plus interest as of 16 February 2017;

i) EUR 9,600 for the monthly salary of March 2017, plus interest as of 16 March 2017;

j) EUR 9,600 for the monthly salary of April 2017, plus interest as of 16 April 2017;

k) EUR 9,600 for the monthly salary of May 2017, plus interest as of 16 May 2017.

l) EUR 15,000 for the bonus under art. 9-1 of the contract, plus interest as of 8 April 2017. In this regard, the Claimant enclosed information taken from the internet regarding his appearances with the club.

6. The Claimant further asked that the Respondent be ordered to pay a contribution to his legal expenses in the amount of EUR 5,000.

7. In spite of having been invited to do so, the Respondent has not replied to the claim.

II. Considerations of the Dispute Resolution Chamber

1. First of all, the Dispute Resolution Chamber (hereinafter also referred to: the Chamber or DRC) analysed whether it was competent to deal with the matter at hand. In this respect, the Chamber took note that the present matter was submitted to FIFA on 18 July 2017. Consequently, the Rules Governing the Procedures of the Players’ Status Committee and the Dispute Resolution Chamber (edition 2017; hereinafter: Procedural Rules) are applicable to the matter at hand (cf. art. 21 of the Procedural Rules).

2. Subsequently, the members of the Chamber referred to art. 3 par. 1 of the Procedural Rules and confirmed that, in accordance with art. 24 par. 1 and par. 2 in conjunction with art. 22 lit. b) of the Regulations on the Status and Transfer of Players (edition 2016), the Dispute Resolution Chamber is competent to deal with the matter at stake, which concerns an employment-related dispute with an international dimension between a Player of Country B and a Club of Country D.

3. Furthermore, the Chamber 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 2016), and considering that the present claim was lodged on 18 July 2017, the 2016 edition of said regulations (hereinafter: Regulations) is applicable to the matter at hand as to the substance.

4. The competence of the Chamber and the applicable regulations having been established, the DRC entered into the substance of the matter. In this respect, the Chamber started by acknowledging all the above-mentioned facts as well as the arguments and the documentation on file. However, the DRC emphasised 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.

5. Having said this, the members of the Chamber acknowledged that the Claimant and the Respondent signed an employment contract valid for the season 2016-2017, in accordance with which the Claimant was entitled to receive from the Respondent a salary of EUR 120,000 and a bonus of EUR 15,000 once the player “has completed his 20th match”.

6. In continuation, the DRC took note that the Claimant lodged a claim against the Respondent in front of FIFA, maintaining that the Respondent has overdue payables towards him in the total amount of EUR 96,170, corresponding to EUR 81,170 for outstanding salaries and to EUR 15,000 for the bonus provided in the contract.

7. In this context, the members of the Chamber took particular note of the fact that, on 31 July 2017, the Claimant put the Respondent in default of payment of the aforementioned amount, setting a ten days’ time limit in order to remedy the default.

8. Consequently, the Chamber 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 obligation(s).

9. Subsequently, the DRC took into account that the Respondent, for its part, failed to present its response to the claim of the Claimant, in spite of having been invited to do so. In this way, the members of the Chamber 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 Chamber concurred that, in accordance with art. 9 par. 3 of the Procedural Rules, it 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 Chamber acknowledged that, in accordance with the contract, the Respondent was obliged to pay to the Claimant the amount of EUR 120,000 for the salaries, where EUR 24,000 were payable as signing-on fee and EUR 96,000 in ten instalments payable on the 15th day of each month as from August 2016 until April 2017 and on 1 May 2017. In this regard, the members of the Chamber recalled that the Claimant maintained that the Respondent did not provide him with the payment of outstanding salaries in the amount of EUR 81,170. Furthermore, the Chamber acknowledged that, pursuant to the contract, the Respondent was obliged to pay to the Claimant the amount of EUR 15,000 for the bonus, once the player “has completed his 20th match”. In this respect, from the documentation submitted by the Claimant, the members of the Chamber took note that the Claimant played his 20th match with the Respondent on 20 April 2017.

12. Taking into account the documentation presented by the Claimant in support of his petition, the Chamber concluded that the Claimant had substantiated his claim pertaining to overdue payables with sufficient documentary evidence in accordance with art. 12 par. 3 of the Procedural Rules. That is, the Chamber concluded that the Claimant presented sufficient documentation relating to his claim for the outstanding salaries and the bonus provided by the contract.

13. On account of the aforementioned considerations, the DRC established that the Respondent failed to remit the Claimant’s remuneration in the total amount of EUR 96,170.

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

15. Consequently, the Chamber 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 96,170.

16. In continuation, taking into account the Claimant’s request as well as the constant practice of the Dispute Resolution Chamber, the Chamber decided that the Respondent must pay to the Claimant interest on the amount of EUR 96,170, as follows:

a) 5% p.a. as of 2 July 2016 on the amount of EUR 965;

b) 5% p.a. as of 16 August 2016 on the amount of EUR 1,430;

c) 5% p.a. as of 16 September 2016 on the amount of EUR 1,975;

d) 5% p.a. as of 16 October 2016 on the amount of EUR 9,600;

e) 5% p.a. as of 16 November 2016 on the amount of EUR 9,600;

f) 5% p.a. as of 16 December 2016 on the amount of EUR 9,600;

g) 5% p.a. as of 16 January 2017 on the amount of EUR 9,600;

h) 5% p.a. as of 16 February 2017 on the amount of EUR 9,600;

i) 5% p.a. as of 16 March 2017 on the amount of EUR 9,600;

j) 5% p.a. as of 16 April 2017 on the amount of EUR 9,600;

k) 5% p.a. as of 21 April 2017 on the amount of EUR 15,000;

l) 5% p.a. as of 16 May 2017 on the amount of EUR 9,600.

17. In addition, as to the claimed legal expenses in the amount of EUR 5,000, the Chamber referred to art. 18 par. 4 of the Procedural Rules as well as to its long-standing and well-established jurisprudence, in accordance with which no procedural compensation shall be awarded in proceedings in front of the Dispute Resolution Chamber. Consequently, the Chamber decided to reject the Claimant’s request in this respect.

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

19. In this regard, the Chamber established that, by virtue of art. 12bis par. 4 of the Regulations, it has competence to impose sanctions on the Respondent. Therefore, and bearing in mind that the Respondent did not reply to the claim of the Claimant, the DRC decided to impose a fine on the Respondent in accordance with art. 12bis par. 4 lit. c) of the Regulations. Furthermore, taking into consideration the amount due of EUR 96,170, the members of the Chamber regarded a fine amounting to CHF 15,000 as appropriate and hence decided to impose said fine on the Respondent.

20. In this respect, the DRC wished to highlight that a repeated offence will be considered as an aggravating circumstance and lead to more severe penalty in accordance with art. 12bis par. 6 of the Regulations.

21. The members of the Chamber concluded their deliberations by rejecting any further claim of the Claimant.

III. Decision of the Dispute Resolution Chamber

1. The claim of the Claimant, Player 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, overdue payables in the amount of EUR 96,170, plus interest at the rate of 5% p.a. as follows:

a) 5% p.a. as of 2 July 2016 on the amount of EUR 965;

b) 5% p.a. as of 16 August 2016 on the amount of EUR 1,430;

c) 5% p.a. as of 16 September 2016 on the amount of EUR 1,975;

d) 5% p.a. as of 16 October 2016 on the amount of EUR 9,600;

e) 5% p.a. as of 16 November 2016 on the amount of EUR 9,600;

f) 5% p.a. as of 16 December 2016 on the amount of EUR 9,600;

g) 5% p.a. as of 16 January 2017 on the amount of EUR 9,600;

h) 5% p.a. as of 16 February 2017 on the amount of EUR 9,600;

i) 5% p.a. as of 16 March 2017 on the amount of EUR 9,600;

j) 5% p.a. as of 16 April 2017 on the amount of EUR 9,600;

k) 5% p.a. as of 21 April 2017 on the amount of EUR 15,000;

l) 5% p.a. as of 16 May 2017 on the amount of EUR 9,600.

3. In the event that the amount plus interest due to the Claimant is not paid by the Respondent within the stated time limit, the present matter shall be submitted, upon request, to the FIFA Disciplinary Committee for consideration and a formal decision.

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

5. The Claimant is directed to inform the Respondent immediately and directly of the account number to which the remittance is to be made and to notify the Dispute Resolution Chamber of every payment received.

6. The Respondent is ordered to pay a fine in the amount of CHF 15,000. The fine is to be paid within 30 days of notification of the present decision 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

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 Dispute Resolution Chamber:

Omar Ongaro

Football Regulatory Director

Encl: CAS directives