F.I.F.A. – Dispute Resolution Chamber / Camera di Risoluzione delle Controversie – labour disputes / controversie di lavoro (2016-2017) – fifa.com – atto non ufficiale – Decision 13 October 2016

Decision of the

Dispute Resolution Chamber

passed in Zurich, Switzerland, on 13 October 2016,

in the following composition:

Geoff Thompson (England), Chairman

Theo van Seggelen (Netherlands), member

Wouter Lambrecht (Belgium), 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

arisen between the parties

I. Facts of the case

1. On 21 January 2015, the Player of Country B Player A (hereinafter: the player or Claimant) and the Club of Country D Club C (hereinafter: the club or Respondent) signed an employment contract, valid as from 21 January 2015 until 31 May 2015 (hereinafter: the contract).

2. According to the contract, the player was entitled to receive, inter alia, the total amount of EUR 100,000, payable as follows:

 the amount of EUR 25,000, due on 20 February 2015;

 the amount of EUR 25,000, due on 20 March 2015;

 the amount of EUR 25,000, due on 20 April 2015;

 the amount of EUR 25,000, due on 20 May 2015.

3. On 5 May 2015, the player and the club signed a document, referred to as ‘termination of professional football player contract’ (hereinafter: the termination agreement).

4. According to the termination agreement, the player was entitled to receive the amount of EUR 60,000 by no later than 30 June 2015, as the total outstanding amount at the date of the signing of the termination agreement. Furthermore, based on said document, the contract would end on 31 May 2015 and the player was released from the obligation to participate ‘in practices and games’ in the period between 6 May 2015 and 31 May 2015.

5. On 11 September 2015, the player lodged a claim before FIFA against the club, claiming outstanding remuneration in the total amount of EUR 60,591.78, specified as follows:

 the amount of EUR 60,000 as per the termination agreement, due as from 30 June 2015;

 the amount of EUR 591.78 as interest, according to the player corresponding as 5% interest p.a. as from the respective due dates of the payments under the contract, because the club failed to timely pay him the first three instalments as per the contract.

In addition, the player requested ‘interests due for the delay of the agreed payment’, as from 30 June 2015 until the date of effective payment.

6. In his claim, the player explains that in April 2015, the club had failed to pay him the first three instalments of the contract, as a result of which on 21 April 2015, he put the club in default for the amount of EUR 75,000, requesting for the payment of said amount in 5 days.

7. After not having received the amount of EUR 75,000 on 26 April 2015, however only the amount of EUR 15,000 ‘on May of 2015’, the player and the club signed - on 5 May 2015 - the termination agreement.

8. Moreover, the player explains that the club failed to meet the deadline for payment of the amount of EUR 60,000, i.e. before 30 June 2015. The player holds to have put the club again in default on 2 July 2015, requesting for the payment of the outstanding amount of EUR 60,000 within 5 days. The player states that the club failed to pay him the requested amount before 7 July 2015.

9. Despite being invited to do so and having requested for an extension of the deadline, the club did not reply as to the substance of the claim of the player.

II. Considerations of the Dispute Resolution Chamber

1. First of all, the Dispute Resolution Chamber (hereinafter also referred to as Chamber or DRC) analysed whether it was competent to deal with the matter at hand. In this respect, it took note that the present matter was submitted to FIFA on 11 September 2015. Consequently, the Rules Governing the Procedures of the Players’ Status Committee and the Dispute Resolution Chamber (edition 2015; 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 2 in combination 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, it confirmed that in accordance with art. 26 par. 1 and 2 of the Regulations on the Status and Transfer of Players (edition 2016), and considering that the present claim was lodged on

11 September 2015, the 2015 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 Chamber 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 submitted by the parties. However, the Chamber 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 members of the Chamber acknowledged first that following the conclusion of an employment contract on 21 January 2015, the player and the club concluded a document referred to as ‘termination of professional football player contract’, by means of which they agreed that the club would pay to the player the amount of EUR 60,000 by no later than 30 June 2015.

6. Subsequently, the members of the Chamber noted that the player contacted FIFA on 11 September 2015, indicating that the club had not fulfilled its obligation as established in the termination agreement, since it failed to timely pay the amount of EUR 60,000, even after being put in default by the player on 2 July 2015. In this respect, the Chamber noted that the player also claimed to be awarded interest as from 30 June 2015 on the amount of EUR 60,000 as a result of the delay in payment of this amount, as well as additional interest in the amount of EUR 591.78, because ‘the club failed to timely pay him the salaries under the employment contract’.

7. Furthermore, the Chamber noted that the club was given the opportunity to reply to the claim submitted by the player, but that the club failed to present its response in this respect. In this way, so the members of the Chamber deemed, the club renounced to its right of defence.

8. As a consequence of the preceding consideration, the Chamber established that in accordance with art. 9 par. 3 of the Procedural Rules, it shall take a decision upon the basis of the documents on file.

9. On account of the aforementioned considerations, the Chamber established that the club failed to pay to the player the amount of EUR 60,000 as agreed upon in the termination agreement. Consequently, the Chamber concluded that, in accordance with the general legal principle of “pacta sunt servanda”, the club is liable to pay the player the amount of EUR 60,000.

10. In continuation, taking into account the player’s request for interest and the constant practice of the Chamber, the members of the Chamber decided that the Claimant is entitled to receive interest at the rate of 5% p.a. on the amount of EUR 60,000 as of 1 July 2015 until the date of effective payment.

11. Furthermore, as regards the player’s claim for additional interest in the amount of EUR 591.78, the Chamber reiterated the legal principle of the burden of proof and noted that the termination agreement, on which the player bases this part of his claim, does not contain a clause on the basis of which the request for additional interest could be accepted. As a result thereof, the Chamber agreed that this part of the player’s claim has to be rejected due to a lack of contractual basis.

12. The members of the Chamber concluded their deliberations in the present matter by establishing that any further claim lodged by the player is rejected.

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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, the amount of EUR 60,000 plus 5% interest p.a. as from 1 July 2015 until the date of effective payment.

3. 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.

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.

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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:

Marco Villiger

Deputy Secretary General

Encl. CAS Directives