F.I.F.A. – Camera di Risoluzione delle Controversie (2012-2013) – contributo di solidarietà – ———- F.I.F.A. – Dispute Resolution Chamber (2012-2013) – solidarity contribution – official version by www.fifa.com –Decision of the Dispute Resolution Chamber (DRC) judge passed in Zurich, Switzerland, on 17 May 2013, by Theo van Seggelen (Netherlands), DRC judge, on the claim presented by the club Club H, from country D as Claimant against the club Club G, from country I as Respondent regarding a solidarity contribution dispute related to the the transfer of the player B
F.I.F.A. - Camera di Risoluzione delle Controversie (2012-2013) - contributo di solidarietà – ---------- F.I.F.A. - Dispute Resolution Chamber (2012-2013) - solidarity contribution – official version by www.fifa.com –Decision of the
Dispute Resolution Chamber (DRC) judge
passed in Zurich, Switzerland, on 17 May 2013,
by Theo van Seggelen (Netherlands), DRC judge,
on the claim presented by the club
Club H, from country D
as Claimant
against the club
Club G, from country I
as Respondent
regarding a solidarity contribution dispute
related to the the transfer of the player B
I. Facts of the case
1. The country D Football Federation confirmed that the player B (hereinafter: the player), born in March 1987, was registered with its affiliated club, Club H (hereinafter: the Claimant), as from 1 August 1998 until 31 July 2007.
2. The football season in country D ran as from 1 July until 30 June of the following year.
3. The country I Football Federation informed FIFA that the player was registered with its affiliated club, Club G (hereinafter: the Respondent), on 18 August 2010.
4. Before a claim was lodged in front of FIFA, the Respondent informed the Claimant that the Club P, from country E and the Respondent agreed upon a transfer compensation for the transfer of the player amounting to EUR 5,750,000, payable in four installments, the first three installments of EUR 1,475,000 each, amounting to EUR 4,425,000 and the last installment of EUR 1,325,000 being due on 15 July 2011. On 9 December 2010 and in relation to the first three installments, the Respondent proposed to the Claimant that it would pay the latter the amount of EUR 157,184.75 as follows:
- EUR 52,395 by 1 February 2011;
- EUR 52,395 by 30 April 2011;
- EUR 52,395 by 31 August 2011.
5. In reply to such proposal, the Claimant informed the Respondent in writing that it agreed with the proposal but added that “if you are in default with one of these installments or parts of such for more than 7 days, the whole amount still due at that time will become immediately due and subject to interest of 10% from then on”. On 25 February 2011, the Respondent informed the Claimant it had paid to the latter the first installment of EUR 52,395 and later informed the Claimant that a further amount of EUR 47,066.62 was due as of 31 August 2011.
6. On 14 November 2011, the Claimant lodged a claim in front of FIFA claiming its proportion of the solidarity contribution in connection with the abovementioned transfer and, after amending its claim, requesting EUR 121,856, made up as follows:
- three installments of EUR 52,395 each for a total amount of EUR 157,185,
- the final installment of EUR 47,066,
- minus the amount of EUR 82,395 paid by the Respondent, i.e. EUR 52,395 paid on 25 February 2011 and a further EUR 30,000 paid on 17 April 2012.
In addition to that, the Claimant is requesting 10% interest p.a.:
- over the amount of EUR 52,395 as from 1 May 2011,
- over the amount of EUR 99,461 (EUR 52,395 + EUR 47,066) as from 1 September 2011 until 30 April 2012, and
- over the amount of EUR 69,461 (EUR 52,395 + EUR 47,066 – EUR 30,000) as from 1 May 2012.
7. In its position, the Claimant stated that the interest rate of 10% p.a. was allegedly agreed upon between the parties on 9 December 2010, 20 December 2010 and 25 February 2011, when the Respondent, by fax, acknowledged the Claimant’s confirmation of the Respondent’s “proposal of instalment payment”, agreeing upon the following payment plan for the outstanding solidarity contribution:
“EUR 52,395 each on until Feb. 1, 2011; April 30, 2011; Aug. 31, 2011”
8. In its reply, the Respondent acknowledged the outstanding sum of EUR 121,856 still payable to the Claimant and, in view of its financial situation, proposed a payment plan of nine installments, which was never explicitly accepted by the Claimant:
- EUR 21,856 payable until 28 February 2013
- EUR 12,500 payable until 31 March 2013,
- EUR 12,500 payable until 30 April 2013,
- EUR 12,500 payable until 31 May 2013,
- EUR 12,500 payable until 30 June 2013,
- EUR 12,500 payable until 31 July 2013,
- EUR 12,500 payable until 31 August 2013,
- EUR 12,500 payable until 30 September 2013,
- EUR 12,500 payable until 31 October 2013.
9. In its final position, the Claimant insisted on its claim and indicated that the Respondent neither complied with the payment plan it proposed (cf. point 8) nor paid any other amounts to the Claimant.
10. Despite having been reminded to do so by the Claimant, the Respondent did not pay the outstanding amounts. Therefore the Claimant insisted on its claim as outlined in point 6. above.
II. Considerations of the DRC judge
1. First of all, 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 14 November 2011. Consequently, the DRC judge concluded that the 2008 edition of the Rules Governing the Procedures of the Players’ Status Committee and the Dispute
Resolution Chamber 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. 2 and 3 of the Procedural Rules and confirmed that in accordance with art. 24 par. 1 and 2 in conjunction with art. 22 lit. d) of the Regulations on the Status and Transfer of Players (edition 2010), he is competent to decide on the present matter, which concerns a dispute relating to the solidarity mechanism 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 2010) and, on the other hand, to the fact that the present claim was lodged on 14 November 2011 and that the player was registered with the Respondent on 18 August 2010. In view of the aforementioned, the DRC judge concluded that the 2009 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 above-mentioned facts of the case as well as the documents contained in the file.
5. In this respect, the DRC judge took into account that the Respondent and Club P, from country E, agreed upon a transfer compensation for the transfer of the player amounting to EUR 5,750,000, payable in four installments. Thereof, the first three installments amounted to EUR 1,475,000, each with unspecified payment dates and the fourth installment amounted to EUR 1,325,000 due on 15 July 2011.
6. In this respect, the DRC judge noted that the Claimant, after amending its claim, claimed payment of the amount of EUR 121,856 as solidarity contribution from the Respondent, corresponding to 71,04% of the 5% of the total transfer compensation, since it received EUR 52,395 on 25 February 2011 and a further EUR 30,000 on 17 April 2012 from the Respondent.
7. In addition to that, the DRC judge took note that the Respondent acknowledged that the sum of EUR 121,856 was still outstanding and therefore payable to the Claimant, but proposed a new payment plan made up of nine instalments.
8. Furthermore, the DRC judge noted that the Respondent did not pay the outstanding amounts in accordance with the payment plan and therefore the Claimant insisted on its initial claim.
9. Having established the above, the DRC judge referred to art. 21 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 between the seasons of his 12th and 23rd birthday.
10. In view of the above, and given that the parties could not reach an amicable settlement on the payment, the DRC judge decided that the Claimant was entitled to receive from the Respondent the undisputed amount of EUR 121,856 as solidarity contribution for the transfer of the player from Club P to the Respondent, payable in accordance with the Claimant’s claim.
11. Furthermore, the DRC judge took note that on 14 November 2011 the Claimant lodged a claim in front of FIFA claiming its proportion of the solidarity contribution in connection with the abovementioned transfer and, after amending its claim, requesting EUR 121,856, made up as follows:
- three installments of EUR 52,395 each for a total amount of EUR 157,185,
- the final installment of EUR 47,066,
- minus the amount of EUR 82,395 paid by the Respondent, i.e. EUR 52,395 paid on 25 February 2011 and a further EUR 30,000 paid on 17 April 2012.
In addition to that, the DRC judge noted that the Claimant furthermore claimed 10% interest p.a.:
- over the amount of EUR 52,395 as from 1 May 2011,
- over the amount of EUR 99,461 (EUR 52,395 + EUR 47,066) as from 1 September 2011 until 30 April 2012, and
- over the amount of EUR 69,461 (EUR 52,395 + EUR 47,066 – EUR 30,000) as from 1 May 2012.
12. After careful examination of the various correspondences exchanged between the parties, the DRC judge came to the conclusion that from said correspondence it cannot be concluded that the Respondent agreed to pay interest at a rate of 10% p.a. in case of its default. Therefore, the DRC judge pointed out that in accordance with the constant practice of the DRC, default interest at a rate of 5% p.a. was applicable to the present case.
13. Consequently, and in view of the due dates of each installment of the transfer amount and the partial payments which have been made by the Respondent to the Claimant as outlined above, the DRC judge concluded that default interest at a rate of 5% p.a. was payable by the Respondent to the Claimant on the amount of EUR 22,395 as from 1 May 2011, on the amount of EUR 52,395 as from 1 September 2011 and on the amount of EUR 47,066 as from 14 November 2011.
14. Furthermore, the DRC judge concluded that any further claims lodged by the Claimant had to be rejected.
15. 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 Dispute Resolution Chamber in relation to disputes regarding training compensation, costs in the maximum amount of currency of country H 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).
16. In respect of the above, and taking into account that the claim of the Claimant was partially accepted, and considering the degree of success by the Claimant, the DRC judge concluded that the Respondent has to bear the costs of the current proceedings in front of FIFA.
17. According to Annexe A of the Procedural Rules, the costs of the proceedings are to be levied on the basis of the amount in dispute.
18. On that basis, the DRC judge held that the amount to be taken into consideration in the present proceedings is EUR 121,856, based on the claim of the Claimant. Consequently, the DRC judge concluded that the maximum amount of costs of the proceedings corresponds to currency of country S 20,000.
19. Considering the particularities of the case at hand as well as the complexity of the case, and that it was adjudicated by the DRC judge and not by the DRC, the DRC judge determined the costs of the current proceedings to the amount of currency of country S 8,000, which shall be borne by the Respondent.
III. Decision of the DRC judge
1. The claim of the Claimant, Club H, is partially accepted.
2. The Respondent, Club G, has to pay to the Claimant, within 30 days as from the date of notification of this decision, the amount of EUR 121,856, plus 5% interest p.a. on said amount until the date of effective payment, as follows:
- on the amount of EUR 22,395 as from 1 May 2011;
- on the amount of EUR 52,395 as from 1 September 2011;
- on the amount of EUR 47,066 as from 14 November 2011.
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 claims lodged by the Claimant are rejected.
5. The final costs of the proceedings in the amount of currency of country S 8,000 are to be paid by the Respondent within 30 days as from the date of the notification of the present decision, as follows:
5.1. The amount of currency of country S 4,000 to FIFA to the following bank account with reference to case nr. XX-XXXX:
5.2. The amount of currency of country S 4,000 directly to the Claimant.
6. The Claimant is directed to inform the Respondent immediately and directly of the account number to which the remittance under point 2. and 5.2. above is to be made and to notify the DRC judge of every payment received.
*****
Note relating to the motivated decision (legal remedy):
According to art. 67 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
www.tas-cas.org
For the DRC judge:
Markus Kattner
Deputy Secretary General
Enclosed: CAS directives
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