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 25 October 2018

Decision of the

Dispute Resolution Chamber

passed in Zurich, Switzerland, on 25 October 2018,

in the following composition:

Geoff Thompson (England), Chairman

Stefano La Porta (Italy), member

Muzammil Bin Mohamed (Singapore), member

Tomislav Kasalo (Croatia), member

Joaquim Evangelista (Portugal), 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 an unspecified date, the player of Country B, Player A (hereinafter: the Claimant), and the club of Country D, Club C (hereinafter: the Respondent), signed an employment contract valid as from 16 December 2017 until 20 May 2018.

2. According to art. 2 of the employment contract, the Claimant was entitled, inter alia, to the total amount of USD 75,000 for the entire duration of the employment relationship.

3. According to art. 3 of the employment contract, the above-mentioned amount was to be paid in 4 instalments of USD 18,750 each as follows: a. the first “after the contract being signed by both parties”; b. the second “within January to February 2018”; c. the third “within April to May 2018” and d. the fourth “at the end of the contract”.

4. By letter dated 29 June 2018, the Claimant put the Respondent in default of payment of USD 56,250, corresponding to the second, the third and the fourth instalment of the employment contract, asking to be paid by 7 July 2018.

5. On 10 July 2018, the Claimant lodged a claim against the Respondent in front of FIFA requesting to be awarded:

a. USD 56,250, corresponding to his outstanding salaries;

b. USD 100,000 as compensation “for all the image and moral damages suffered”;

c. 5% interest p.a. “since the moment the due amount became outstanding”.

6. With his claim, the Claimant further requested that sporting sanctions be imposed on the Respondent.

7. More in particular, the Claimant explained that, after he had been regularly paid USD 18,750 as first instalment of the contract on 16 December 2017, he did not receive any payments from the Respondent until the contract expired on 20 May 2018.

8. Furthermore, the Claimant argued that, as a consequence of the Respondent’s stance, he suffered “several sporting, financial, image and moral damages” for which he deemed he had to be compensated.

9. Despite having been invited by FIFA to provide its comments on the present matter, the Respondent did not answer to the claim.

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 10 July 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 10 July 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, on an unspecified date, the Claimant and the Respondent signed an employment contract pursuant to which the Respondent undertook to pay to the Claimant, inter alia, to the total amount of USD 75,000 for the whole duration of the employment relationship.

6. More in particular, the DRC observed that the Claimant’s financial entitlements were to be paid in 4 instalments of USD 18,750 each, according to the following schedule: i. the first instalment was due “after the contract being signed by both parties”; ii. the second was due “within January to February 2018”; iii. the third “within April to May 2018” and iv. the last “at the end of the contract”.

7. The Dispute Resolution Chamber further acknowledged that, according to the Claimant, the Respondent had failed to remit him the amounts corresponding to the second, the third and the fourth instalment and that, consequently, he put the Respondent in default of payment of USD 56,250 on 29 June 2018.

8. 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.

9. 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.

10. Having said that, the Chamber highlighted that it remained uncontested that the Respondent had not fulfilled its financial obligations set forth in the employment contract signed between the parties and that it failed to pay to the Claimant the amount of USD 56,250 in accordance with said contract.

11. 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 amount of USD 56,250 to the Claimant.

12. In addition, taking into account the Claimant’s claim and bearing in mind that the documentation on file did not allow the members of the Chamber to determine the due dates of the specific financial obligation, the Chamber decided to award the Claimant interest of 5% p.a. as of the day following the expiry of the employment contract.

13. Subsequently, the DRC analysed the request of the Claimant corresponding to compensation for image and moral damages in the amount of USD 100,000. In this regard, the Chamber deemed it appropriate to point out that the request for said compensation presented by the Claimant had no legal or regulatory basis and pointed out that no corroborating evidence had been submitted that demonstrated or quantified the damage suffered. Consequently, the DRC rejected the Claimant’s request relating to moral damages.

14. The Dispute Resolution Chamber concluded its deliberations in the present matter by establishing that any further claim lodged by the Claimant is rejected.

15. 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.

16. In this regard, the Chamber established that, in virtue of the aforementioned provision, it has competence to impose a sanction on the Respondent. More in particular, the DRC pointed out that, against clubs, the sanction shall consist in a ban from registering any new players, either nationally or internationally, up until the due amount is paid and for the maximum duration of three entire and consecutive registration periods.

17. Therefore, bearing in mind the above, the DRC decided that, in the event that the Respondent does not pay the amount 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.

18. Finally, the Chamber recalled that the above-mentioned sanction 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 partially accepted.

2. The Respondent, Club C, has to pay to the Claimant the amount of USD 56,250 plus 5% interest p.a. as of 21 May 2018 until the date of effective payment.

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

4. 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.

5. The Respondent shall provide evidence of payment of the due amount in accordance with point 2 above to FIFA to the e-mail address XXX, duly translated, if need be, into one of the official FIFA languages (English, French, German, Spanish).

6. In the event that the amount due plus interest 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 amount is 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).

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

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

*****

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 & Integrity Officer