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 15 December 2016

Decision of the

Dispute Resolution Chamber

passed in Zurich, Switzerland, on 15 December 2016,

in the following composition:

Thomas Grimm (Switzerland), Deputy Chairman

John Bramhall (England), member

Mario Gallavotti (Italy), member

on the claim presented by the

Football Federation of Country A

as Claimant

against the club,

Club B, Country C

as Respondent

regarding solidarity contribution in connection with

the transfer of the Player D

I. Facts of the case

1. According to the player passport issued by the Football Federation of Country A (hereinafter: the Claimant), the Player D (hereinafter: the player), born on 6 December 1989, was registered with the following Clubs of Country A:

Club Registration dates

Club E

from 18 August 2000 until 1 August 2001

Club F

from 2 August 2001 until 14 August 2003

Club G

from 15 August 2003 until 6 September 2005

Club H

from 7 September 2005 until 21 February 2008

Club J

from 22 February 2008 until 21 July 2008

Club K

from 22 July 2008 until 7 August 2009

Club L

from 8 August 2009 until 30 June 2010

Club M

from 22 July 2010 until 22 August 2010

Club L

from 23 August 2010 until 30 June 2012

Club M

from 1 July 2012 until 30 June 2013

2. The football seasons in Country A during the period of time the player was registered with the aforementioned Clubs of Country A ran from 1 July until 30 June of the following year.

3. The Football Federation of Country C confirmed that the player was registered with the Club of Country C, Club B (hereinafter: the Respondent), on 24 July 2013.

4. According to the information contained in the Transfer Matching System (TMS), on 2 July 2013, the Club of Country A, Club M, and the Respondent concluded a transfer agreement for the definitive transfer of the player from Club M to the Respondent for a compensation amounting to EUR 1,200,000, payable by no later than 15 July 2013.

5. On 27 May 2014, the DRC rendered a decision with respect to the distribution of the solidarity contribution in connection with the transfer of the player from Club M to the Respondent, opposing Club H, Club J, Club F and Club L to the Respondent, according to which the following amounts were granted to the aforementioned Clubs of Country A:

Club Amount granted

Club F

EUR 6,000, plus 5% interest p.a. as of 15 August 2013

Club H

EUR 14,724, plus 5% interest p.a. as of 1 November 2013

Club J

EUR 2,496, plus 5% interest p.a. as of 15 August 2013

Club L

EUR 16,500, plus 5% interest p.a. as of 15 August 2013

6. On 29 July 2015, the Claimant contacted FIFA claiming its proportion of the solidarity contribution in connection with the transfer of the player from Club M to the Respondent. In particular, the Claimant requested, after amending its claim on 30 June 2016, 20.8% of the 5% of the transfer compensation for the period the player was registered with and trained by Club G and Club K, plus 5% interest p.a. as of 14 August 2013.

7. In particular, the Claimant argued that the player was trained from the age of 12 to the age of 23 by Clubs of Country A which have failed to claim their proportion of solidarity contribution and are no longer affiliated to the Claimant. As a result and on the basis of art. 2 par. 3 of Annexe 4 of the FIFA Regulations on the Status and Transfer of Players (edition 2012), the Claimant is claiming solidarity contribution in order to allegedly develop youth football in Country A.

8. In this respect, the Claimant referred to the jurisprudence of the Dispute Resolution Chamber (DRC) and submitted that there are many reasons why a club is not able to claim its portion of the solidarity contribution, resulting in the entitlement of the National Association to claim those payments.

9. In this context, the Claimant provided a copy of a “solution in short” of the “Court no. C5”, dated 20 January 2016 according to which, “the Court orders the cessation of reorganization and beginning of bankruptcy proceedings in the general procedure of the debtor Club N” as well as a confirmation of the Association O in accordance with which Club G is no longer affiliated and does not take part in any of the competitions organized by said regional association.

10. In its reply to the claim, the Respondent held that it has already paid solidarity contribution in connection with the transfer of the player and provided the following proof of payments dated 30 March 2015:

Club Amount paid

Club F

EUR 6,488

Club H

EUR 15,764

Club J

EUR 2,700

Club L

EUR 17,842

II. Considerations of the Dispute Resolution Chamber

1. First of all, the Dispute Resolution Chamber (hereinafter also referred to as DRC or Chamber) 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 29 July 2015. Consequently, 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 of the 2015 edition 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 2 in combination with art. 22 lit. (d) of the Regulations on the Status and Transfer of Players (edition 2016), the Dispute Resolution Chamber is competent to deal with the matter with an international dimension concerning the distribution of the solidarity contribution claimed by the Claimant, the Football Federation of Country A, in connection with the international transfer of the professional player, Player E.

3. Furthermore, the Chamber 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 (editions 2012, 2014, 2015 and 2016), and considering that the player was registered with the Respondent on 24 July 2013, 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 and the applicable regulations having been established, the Chamber entered into the substance of the matter. The members of the Chamber started by acknowledging the facts of the case as well as 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. In this respect, the DRC took note that the Claimant requested, after amending its claim, 20.8% of 5% of the alleged transfer compensation of EUR 1,200,000 as solidarity contribution, relating to the period of the player was registered with and trained by Club G and Club N, from the Respondent in relation with the transfer of the player from Club M to the Respondent.

6. In this context, the Chamber underlined that in the present case, it was an association and not a club which claimed the payment of the solidarity contribution. Therefore, it first had to analyse whether the conditions set forth in art. 2 par. 3 of Annexe 5 of the Regulations were fulfilled.

7. The DRC recapitulated that the aforementioned provision stipulates that the solidarity contribution shall be paid to the association(s) of the country where the professional player was trained if it can provide evidence that the club in question – which was involved in the professional’s training and education – has in the meantime ceased to participate in organised football and/or no longer exists due to, in particular, bankruptcy, liquidation, dissolution or loss of affiliation.

8. On this basis, the Chamber outlined that the aforementioned provision stipulates that the solidarity contribution shall be paid to the association of the country where the professional was trained. Thus, the first requirement in order for an association to be entitled to the relevant proportion of the solidarity contribution is that such association can prove that the player was in fact trained in the country of the association.

9. In continuation, the Chamber took note of the fact that it is undisputed that the player was continuously trained in Country A before his transfer to the Respondent and that, in this respect and in support of its claim, the Claimant submitted a copy of the player passport. Consequently, the DRC concluded that the Claimant fulfilled the first requirements to be entitled to claim solidarity contribution.

10. Moreover, the members of the DRC pointed out that the second condition stipulated in art. 2 par. 3 of Annexe 5 of the Regulations is that the clubs that trained and educated the player have in the meantime ceased to participate or to exist. In this context, the DRC underscored that the Claimant held that Club G and Club K were no longer affiliated to it. In this respect, the Claimant submitted evidence that Club G is indeed no longer affiliated and that a Court of Country A ordered the cessation of Club K’ reorganization and its bankruptcy respectively. In view of the aforementioned, the Chamber took note that this requirement was fulfilled and that the Claimant was, consequently, entitled to claim the relevant proportion of the 5% pertaining to the solidarity contribution.

11. Furthermore, the DRC duly noted that the Respondent, in its reply, argued that it had already paid solidarity contribution in connection with the transfer of the player from Club M to the Respondent. In this respect, the Respondent provided a copy of proof of payments of the solidarity contribution to Club F, Club H, Club J and Club L.

12. Having established the above, the DRC referred to art. 21 of the Regulations in combination with art. 1 of Annexe 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.

13. In this respect, the Chamber emphasised that it appears that the Respondent paid the proportion of solidarity contribution to some, but not to all, of the Clubs of Country A that trained and educated the player and that, solidarity contribution was therefore payable to the Claimant for the period of time the player was registered with Club G and Club K.

14. Subsequently, the DRC considered that it had to determine which should be the relevant amount of the solidarity contribution to be paid by the Respondent to the Claimant. In this regard, the DRC went on to establish the proper calculation of the relevant proportion of solidarity contribution due to the Claimant.

15. To that end, the DRC referred to art. 1 of Annexe 5 of the Regulations which provides the figures for the distribution of the solidarity contribution, according to the period of time the player was effectively trained by a specific club and taking into consideration the age of the player at the time he was being trained and educated by the club(s) concerned.

16. In this respect, the DRC recalled that, according to the player passport issued by the Claimant, the player, born on 6 December 1989, was registered with Club G as from 15 August 2003 until 6 September 2005. Equally, the Chamber noted that the player was registered with Club K as from 22 July 2008 until 7 August 2009.

17. On account of the above and in accordance with art. 1 of Annexe 5 of the Regulations, the DRC considered that the Claimant is, thus, entitled to receive solidarity contribution for the aforementioned periods.

18. Furthermore, the members of the Chamber recalled that, according to the information contained in TMS, Club M and the Respondent agreed upon a transfer compensation amounting to EUR 1,200,000, payable by no later than 15 July 2013.

19. In view of all the above, taking into account the claimed percentage by the Claimant, the DRC decided that the Respondent must pay to the Claimant the amount of EUR 12,480 as solidarity contribution in relation to the transfer of the player from Club M to the Respondent.

20. Furthermore, and taking into consideration both the claim of the Claimant as well as art. 2 par. 1 of Annexe 5 of the Regulations, the Chamber decided that the Respondent has to pay interest at a rate of 5% p.a. on the said amount as of 15 August 2013 until the date of effective payment.

21. Lastly, the DRC referred to art. 18 par. 1 of the Procedural Rules, according to which, in proceedings before the DRC relating to disputes regarding training compensation and the solidarity mechanism, 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, 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.

22. In respect of the above, the DRC held that the amount to be taken into consideration in the present proceedings is EUR 12,480 related to the percentage claimed by the Claimant. Consequently, the DRC concluded that the maximum amount of costs of the proceedings corresponds to CHF 5,000 (cf. table in Annexe A of the Procedural Rules).

23. As a result, considering the degree of success, the DRC determined the final costs of the current proceedings to the amount of CHF 5,000 which shall be borne by the Respondent.

*****

III. Decision of the Dispute Resolution Chamber

1. The claim of the Claimant, the Football Federation of Country A, is partially accepted.

2. The Respondent, Club B, has to pay to the Claimant within 30 days of the date of notification of this decision, the amount of EUR 12,480 plus 5% interest as of 15 August 2013 until the date of effective payment.

3. The amount in the previous paragraph shall be reserved for youth football development programmes of the Football Federation of Country A.

4. In the event that the aforementioned sum plus interest 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.

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

6. 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:

UBS Zurich

Account number 366.677.01U (FIFA Players’ Status)

Clearing number 230

IBAN: CH27 0023 0230 3666 7701U

SWIFT: UBSWCHZH80A

7. The Claimant is directed to inform the Respondent immediately and directly of the account number to which the remittance under point 2. is to be made and to notify the Dispute Resolution Chamber 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 Dispute Resolution Chamber:

Marco Villiger

Deputy Secretary General

Encl.: CAS directives