F.I.F.A. – Dispute Resolution Chamber / Camera di Risoluzione delle Controversie – labour disputes / controversie di lavoro (2018-2019) – fifa.com – atto non ufficiale – Decision 26 June 2019

Decision of the

Dispute Resolution Chamber

passed in Zurich, Switzerland, on 26 June 2019,

in the following composition:

Geoff Thompson (England), Chairman

Eirik Monsen (Norway), member

Stéphane Burchkalter (France), member

Joseph Antoine Bell (Cameroon), member

Stefano La Porta (Italy), 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

I. Facts of the case

1. On 20 May 2015, the player of Country B, Player A (hereinafter: the Claimant), concluded an employment contract with the club of Country D, Club C (hereinafter: the Respondent), valid as from 1 July 2015 until 31 May 2018.

2. In accordance with the “Schedule” of the employment contract, the Claimant was, inter alia, entitled to the following: a. USD 180,000 as sign on fee for the 2015/2016 season; b. USD 42,000 as monthly salary for the 2015/2016 season; c. USD 210,000 as sign on fee for the 2016/2017 season; d. USD 49,000 as monthly salary for the 2016/2017 season; e. USD 240,000 as sign on fee for the 2017/2018 season and e. USD 56,000 as monthly salary for the 2017/2018 season.

3. On 25 July 2016, the parties signed a “Mutual Agreement” (hereinafter: termination agreement) by means of which they terminated the contract and stipulated that the Respondent would pay to the Claimant the total amount of USD 555,000, as follows: a. USD 12,000 by 26 July 2016; b. USD 200,000 by 1 August 2017; c. USD 150,000 by 1 February 2018 and d. USD 193,000 by 1 August 2018.

4. On 17 September 2018, the Claimant informed the Respondent in writing that it had failed to “comply with the payment of USD 555,000”, and that he would “start legal procedure against [it] [before] FIFA”.

5. On 11 October 2018, the Claimant lodged a claim against the Respondent in front of FIFA for outstanding remuneration and requested the payment of the amounts set out in the termination agreement, as follows:

a. USD 12,000, plus 5% interest p.a. as from 27 July 2016;

b. USD 200,000, plus 5% interest p.a. as from 2 August 2017;

c. USD 150,000, plus 5% interest p.a. as from 2 February 2018;

d. USD 193,000, plus 5% interest p.a. as from 2 August 2018.

6. With his claim, the Claimant further requested the imposition of sporting sanctions against the Respondent.

7. In respect of the above, the Claimant specified that the Respondent never answered to the “default notice” of 17 September 2018, nor paid the outstanding remuneration.

8. Despite having been invited to do so, the Respondent failed to reply to the claim lodged by the Claimant.

II. Considerations of the Dispute Resolution Chamber

1. First of all, the Dispute Resolution Chamber (hereinafter also referred as DRC or Chamber) analysed whether it was competent to deal with the case at hand. In this respect, the Chamber took note that the present matter was submitted to FIFA on 11 October 2018. Consequently, the DRC concluded that 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 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 in combination with art. 22 lit. b) of the Regulations on the Status and Transfer of Players (edition June 2018), 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 Player (edition June 2018), and considering that the present claim was lodged on 11 October 2018, the June 2018 edition of said regulations (hereinafter: the 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. Having said that, the members of the Chamber acknowledged that, after having signed an employment contract on 20 May 2015, on 25 July 2016 the Claimant and the Respondent signed a termination agreement pursuant to which they put an end to their employment relationship and the Respondent undertook to pay to the Claimant the total amount of USD 555,000, in four instalments as follows: a. USD 12,000 by 26 July 2016; b. USD 200,000 by 1 August 2017; c. USD 150,000 by 1 February 2018 and d. USD 193,000 by 1 August 2018.

6. The Dispute Resolution Chamber further acknowledged that, according to the Claimant, the Respondent had failed to remit to him the total amount of USD 555,000 set forth in the termination agreement, notwithstanding his default notice dated 17 September 2018.

7. Furthermore, the Chamber took note that the Respondent, for its part, failed to present its response to the claim of the Claimant, despite having been invited to do so. In this way, so the Chamber deemed, the Respondent renounced its right to defence and, thus, accepted the allegations of the Claimant.

8. Moreover, and as a consequence of the aforementioned 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 already on file.

9. Having said that, the Chamber highlighted that it remained uncontested that the Respondent had not fulfilled its financial obligations set forth in the termination agreement signed between the parties on 25 July 2016 and that it failed to pay to the Claimant each and every of the four instalments provided therein for a total amount of USD 555,000.

10. On account of the above considerations and the documentation on file, the DRC decided that, in accordance with the general legal principle of “pacta sunt servanda”, the Respondent is liable to pay the requested total amount of USD 555,000 to the Claimant.

11. In addition, taking into account the Claimant’s claim, the Chamber decided to award the Claimant interest of 5% p.a. on the outstanding amounts as of the day following the expiry of the due dates of each of the instalments.

12. Furthermore, taking into account the consideration under number II./3. above, the Chamber 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.

13. In this regard, the Chamber 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.

14. Therefore, bearing in mind the above, the DRC 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.

15. Finally, the Chamber 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 Dispute Resolution Chamber

1. The claim of the Claimant, Player A, is accepted.

2. The Respondent, Club C, has to pay to the Claimant outstanding remuneration in the amount of USD 555,000 plus interest at the rate of 5% p.a. until the date of effective payment, as follows:

a. as from 27 July 2016, on the amount of USD 12,000;

b. as from 2 August 2017, on the amount of USD 200,000;

c. as from 2 February 2018, on the amount of USD 150,000;

d. as from 2 August 2018, on the amount of USD 193,000.

3. The Claimant is directed to inform the Respondent, immediately and directly, preferably to the e-mail address as indicated on the cover letter of the present decision, of the relevant bank account to which the Respondent must pay the amount mentioned under point 2. above.

4. 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).

5. In the event that the amount due 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 amounts are 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).

6. The ban mentioned in point 5. above will be lifted immediately and prior to its complete serving, once the due amount is paid.

7. In the event that the aforementioned sum 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.

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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 (CAS)

Avenue de Beaumont 2

CH-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:

Emilio García Silvero

Chief Legal & Compliance Officer

Encl.: CAS directives