F.I.F.A. – Dispute Resolution Chamber / Camera di Risoluzione delle Controversie – solidarity contribution / contributo di solidarietà – (2016-2017) – fifa.com – atto non ufficiale – Decision 28 January 2016

Decision of the
Dispute Resolution Chamber (DRC) judge
passed in Zurich, Switzerland, on 28 January 2016,
by Theo van Seggelen (Netherlands), DRC judge,
on the claim presented by the club,
Club A, Country B,
as Claimant
against the club,
Club C, Country B
as Respondent
regarding solidarity contribution in connection with the international transfer of the Player E
I. Facts of the case
1. According to the player passport issued by the Football Federation of country B, the Player E, born on 29 April 1984, was registered with its affiliated Club A (hereinafter: Club A or Claimant) from 7 October 2003 until 31 December 2005.
2. The football season in Country B follows the calendar year.
3. On 23 June 2015, Club A lodged a claim in front of FIFA claiming its proportion of the solidarity contribution in connection with the transfer of the player from the Club from country E, Club F (hereinafter: Club F), to the Club from country B, Club C (hereinafter: Club C or Respondent). In particular Club A requested 1,1164% of the total transfer compensation in the amount of EUR 6,698.63, plus 5% as from the relevant due dates (cf. point 5 below).
4. According to the information contained in the Transfer Matching System (TMS), the player was registered with Club F on 5 July 2013.
5. According to the information contained in the Transfer Matching System, Club F and Club C agreed on transfer compensation of EUR 600,000 payable as follows:
- “EUR 100,000 (one hundred thousand euros) which shall be paid no later than 2013, August;
- EUR 100,000 (one hundred thousand euros) which shall be paid no later than 2013, December;
- EUR 100,000 (one hundred thousand euros) which shall be paid no later than 2014, March;
- EUR 100,000 (one hundred thousand euros) which shall be paid no later than 2014, September;
- EUR 100,000 (one hundred thousand euros) which shall be paid no later than 2015, January;
- EUR 100,000 (one hundred thousand euros) which shall be paid no later than 2015, February.”
6. In spite of having been invited to do so, Club C did not reply to the claim.
II. Considerations of the DRC judge
1. First, the DRC 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 23 June 2015. Consequently, the DRC judge concluded that the 2015 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 par. 2 and par. 3 of the Procedural Rules).
2. Subsequently, the DRC judge referred to art. 3 par. 1 of the Procedural Rules, and confirmed that in accordance with art. 24 par. 1, in conjunction with art. 22 lit. d of the Regulations on the Status and Transfer of Players (edition 2015) he is competent to deal with the matter at stake, which concerns a dispute relating to the solidarity mechanism in relation to a transfer between clubs belonging to different associations.
3. Furthermore, the DRC 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 referred, on the one hand, to art. 26 par. 1 and 2 of the Regulations on the Status and Transfer of Players (edition 2015) and, on the other hand, to the fact that the present claim was lodged on 23 June 2015 and that the player was registered with the Respondent on 5 July 2013. In view of the aforementioned, the DRC judge concluded that the 2012 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 DRC judge and the applicable regulations having been established, the DRC judge entered into the substance of the matter. In doing so, the DRC judge started by acknowledging the aforementioned facts of the case as well as the documents contained in the file.
5. In this respect, the DRC judge noted that the Claimant claimed the payment of the amount of EUR 6,698.63 as solidarity contribution from the Respondent, corresponding to 1,1164 of the total compensation, plus 5% interest since the date on which the payments were due.
6. In addition to the above, the DRC judge took into account that according to the information contained in the Transfer Matching System, Club F and the Respondent agreed on transfer compensation of EUR 600,000 payable as follows:
- EUR 100,000 payable by no later than August 2013;
- EUR 100,000 payable by no later than December 2013;
- EUR 100,000 payable by no later than March 2014;
- EUR 100,000 payable by no later than September 2014;
- EUR 100,000 payable by no later than January 2015;
- EUR 100,000 payable by no later than February 2015.
7. Furthermore, the DRC judge duly noted that the Respondent never took position in the present matter, although having been invited to do so by FIFA. Therefore, the DRC judge deemed that, in this way, the Respondent renounced to its right to a defence and accepted the allegations of the Claimant.
8. As a consequence of the aforementioned consideration, the DRC judge established 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.
9. Having established the above, the DRC judge referred to art. 21 of the Regulations in combination with art. 1 of Annex 5 of the Regulations which stipulate that if a professional moves during the course of a contract, 5% of any compensation, not including training compensation paid to his former club, shall be deducted from the total amount of this compensation and be distributed by the new club as a solidarity contribution to the club(s) involved in the training and education of the player in proportion of the number of years the player has been registered with the relevant club(s) between the seasons of his 12th and 23rd birthday.
10. In this respect, the DRC judge recalled that the Football Federation of country B had confirmed that the player, born on 29 April 1984, was registered with the Claimant as from 7 October 2003 until 31 December 2005.
11. On account of the above and in accordance with art. 1 of Annex 5 of the Regulations, the DRC judge considered that the Claimant is thus entitled to receive solidarity contribution for the period as from 7 October 2003 until 31 December 2005, i.e. for 3 months and two complete seasons.
12. In view of all of the above, the DRC judge decided to accept the claim of the Claimant and held that the Respondent is liable to pay the amount of EUR 6,698.63 to the Claimant as solidarity contribution in relation to the transfer of the player from Club F to the Respondent.
13. Furthermore, and taking into consideration both the claim of the Claimant as well as art. 2 par. 1 of Annex 5 of the Regulations, the DRC judge decided that the Respondent has to pay, in conformity with the longstanding practice of the DRC, interest at rate of 5% p.a. as follows:
- 5% p.a. on the amount of EUR 1,116.43 as from 1 October 2013;
- 5% p.a. on the amount of EUR 1,116.44 as from 31 January 2014;
- 5% p.a. on the amount of EUR 1,116.44 as from 1 May 2014;
- 5% p.a. on the amount of EUR 1,116.44 as from 31 October 2014;
- 5% p.a. on the amount of EUR 1,116.44 as from 3 March 2015;
- 5% p.a. on the amount of EUR 1,116.44 as from 31 March 2015.
12. Lastly, the DRC 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, including the DRC judge, relating to disputes regarding training compensation and the solidarity mechanism, costs in the maximum amount of CHF 25’000 are levied. The relevant provision further states that the costs are to be borne in consideration of the parties’ degree of success in the proceedings (cf. art. 18 par. 1 of the Procedural Rules).
13. In respect of the above, and taking into account that the claim of the Claimant has been accepted, the DRC judge concluded that the Respondent has to bear the costs of the current proceedings in front of FIFA.
14. According to Annex A of the Procedural Rules, the costs of the proceedings are to be levied on the basis of the amount in dispute.
15. On that basis, the DRC judge held that the amount to be taken into consideration in the present proceedings is EUR 6,698.63 related to the claim of the Claimant. Consequently, the DRC judge concluded that the maximum amount of costs of the proceedings corresponds to CHF 5,000 (cf. table in Annex A).
16. Considering that the case at hand did not compose any complex factual or legal issues and that it was adjudicated by the DRC judge and not by the DRC, in addition to the fact that the Respondent never replied to the claim after having been made aware of it, the DRC judge determined the costs of the current proceedings to the amount of CHF 5,000 to be paid by the Respondent.
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III. Decision of the DRC judge
1. The claim of the Claimant, Club A, is accepted.
2. The Respondent, Club C , has to pay to the Claimant within 30 days of the date of notification of this decision, the amount of EUR 6,698.63 plus 5% interest p.a. until the date of effective payment as follows:
a) 5% p.a. on the amount of EUR 1,116.43 as from 1 October 2013;
b) 5% p.a. on the amount of EUR 1,116.44 as from 31 January 2014;
c) 5% p.a. on the amount of EUR 1,116.44 as from 1 May 2014;
d) 5% p.a. on the amount of EUR 1,116.44 as from 31 October 2014;
e) 5% p.a. on the amount of EUR 1,116.44 as from 3 March 2015;
f) 5% p.a. on the amount of EUR 1,116.44 as from 31 March 2015.
3. In the event that the aforementioned sum and interest are 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.
4. The final costs of the proceedings in the amount of CHF 5,000 are to be paid by the Respondent within 30 days of notification of the present decision, to FIFA to the following bank account with reference to case no. xxxxxxxxx:
UBS Zurich
Account number 366.677.01U (FIFA Players’ Status)
Clearing number 230
IBAN: CH27 0023 0230 3666 7701U
SWIFT: UBSWCHZH80A
5. The Claimant is directed to inform the Respondent immediately and directly of the account number to which the remittances are to be made and to notify the DRC judge of every payment received.
Note relating to the motivated decision (legal remedy):
According to art. 63 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 DRC judge:
________________________
Markus Kattner
Acting Secretary General
Enclosed: CAS directives
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