F.I.F.A. – Camera di Risoluzione delle Controversie (2013-2014) – controversie di lavoro – ———- F.I.F.A. – Dispute Resolution Chamber (2013-2014) – labour disputes – official version by www.fifa.com – Decision of the Dispute Resolution Chamber passed in Zurich, Switzerland, on 31 October 2013, in the following composition: Geoff Thompson (England), Chairman Ivan Gazidis (England), member Joaquim Evangelista (Portugal), member on the claim presented by the player, Player B, from country P as Claimant against the club, Club L, from country Q as Respondent regarding an employment-related dispute between the parties

F.I.F.A. - Camera di Risoluzione delle Controversie (2013-2014) - controversie di lavoro - ---------- F.I.F.A. - Dispute Resolution Chamber (2013-2014) - labour disputes – official version by www.fifa.com – Decision of the Dispute Resolution Chamber passed in Zurich, Switzerland, on 31 October 2013, in the following composition: Geoff Thompson (England), Chairman Ivan Gazidis (England), member Joaquim Evangelista (Portugal), member on the claim presented by the player, Player B, from country P as Claimant against the club, Club L, from country Q as Respondent regarding an employment-related dispute between the parties I. Facts of the case 1. On 7 July 2010, Player B, from country P (hereinafter: player or Claimant), and the Club L, from country Q (hereinafter: club or Respondent), signed an employment contract valid from 1 July 2010 until 30 July 2013. 2. On 8 May 2012, the parties signed a termination agreement (hereinafter: agreement) by means of which the club inter alia, recognized that it still owed the player the total net amount of EUR 76,889.57; EUR 38,000 to be paid until 15 July 2012 and EUR 38,889.57 to be paid until 31 October 2012. 3. In addition, art. 4 of the above-mentioned agreement indicates that “if Club L doesn´t pay any of the referred instalments (totally or partially) in the due dates above stipulated, this payment agreement should be considered definitely breached, giving the PLAYER the possibility of demanding the immediate payment of the remaining amounts, plus default interest at legal rate, and a penal clause in the amount correspondent to 10% (ten percent) of the total amount still in debt”. 4. On 31 October 2012, the player lodged a claim against the club before FIFA maintaining that the club had failed to comply with the financial obligations deriving from the above-mentioned agreement. 5. In light of the aforementioned, the player is requesting to be awarded the following amounts: • EUR 76,889.57 as established in the termination agreement; • EUR 7,688.96 as per the penalty clause; • EUR 1,295.19 “of default interest calculated over the capital debt, at the rate of 5% per year, from the respective due date, until 31 of October 2012”; • EUR 10.53 “per each day of delay, also as default interest at the rate of 5% per year, from 1st November 2012 until effective and integral payment of the referred €76.889,57”. 6. In its reply, the club informed FIFA that on 4 December 2012, the Regional Court of Club L “decreed the bankruptcy of Club L with possibility of composition agreements”. According to the club, as of 4 December 2012, “until finishing insolvency proceedings Club L is not allowed to realize any payment of obligations which are included to bankruptcy estate”. 7. Moreover, the club indicates that “all obligations will be settled accordingly to composition agreements proposed and signed to all debtors, including Player B as well”. 8. Finally, and in line with the above-mentioned considerations, the club requests FIFA for a “formal motion to suspend terms of liabilities towards Player B till closing insolvency proceedings”. 9. On 14 March 2013, the country Q Football Association informed FIFA that the club was still affiliated to it and participated in its competitions. ***** 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 case at hand. In this respect, it took note that the present matter was submitted to FIFA on 31 October 2012. Consequently, the Rules Governing the Procedures of the Players’ Status Committee and the Dispute Resolution Chamber (edition 2008; hereinafter: Procedural Rules) are applicable to the matter at hand (cf. art. 21 of the 2008 and 2012 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 in combination with art. 22 lit. b) of the Regulations on the Status and Transfer of Players (edition 2012), 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 country P player and a country Q club. 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 par. 2 of the Regulations on the Status and Transfer of Players (editions 2010 and 2012), and considering that the present claim was lodged in front of FIFA on 31 October 2012, the 2010 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 the above-mentioned facts as well as the arguments and the documentation submitted by the parties. 5. In this respect, the DRC firstly acknowledged that, on 7 July 2010, the Claimant and the Respondent had concluded an employment contract valid as from 1 July 2010 until 30 July 2013. 6. Equally, the Chamber took note that, on 8 May 2012, the parties had concluded an agreement by means of which the Respondent had recognised that it owed the Claimant the total net amount of EUR 76,889.57; EUR 38,000 to be paid until 15 July 2012 and EUR 38,889.57 to be paid until 31 October 2012 whilst further agreeing upon the following: “if {the club} doesn´t pay any of the referred instalments (totally or partially) in the due dates above stipulated, this payment agreement should be considered definitely breached, giving the PLAYER the possibility of demanding the immediate payment of the remaining amounts, plus default interest at legal rate, and a penal clause in the amount correspondent to 10% (ten percent) of the total amount still in debt”. 7. In continuation, the Chamber noted that according to the Claimant, the Respondent had not complied with the abovementioned agreement, failing to pay him any amount whatsoever. Consequently, and in clear reference to art. 4 of the termination agreement, the Claimant asks that the Respondent be ordered to pay the full amount of EUR 76,889.57 at once as well as the amount of EUR 7,688.96 relating to the 10% penalty fee plus 5% interest p.a. as from the respective due dates. 8. The Chamber took into account that the Respondent, for its part, does not contest that it owes the Claimant the amounts in question, hence implicitly confirming that it has not made any payment whatsoever to the Claimant. The Respondent’s sole line of defense is that it has been declared under administration and that “until finishing insolvency proceedings [the club] is not allowed to realize any payment of obligations which are included to bankruptcy estate”. 9. With due consideration to the above, the members of the Chamber noted that it was undisputed by the parties that the amount of EUR 76,889.57 had not yet been paid by the Respondent and that failure in doing so, had effectively triggered the explicitly and contractually agreed penalty fee. In this respect, the Chamber stressed that the financial situation of the Respondent did not form a justification for the non-payment of the relevant amounts. 10. This said, and in the specific case at hand, the members of the Chamber deemed that the penalty fee of 10% of the total outstanding amount, which the parties contractually agreed upon in the context of terminating the employment relation, is both proportionate and reasonable. 11. On account of all the above and, bearing in mind that it was undisputed that no payment whatsoever had been made in accordance with the agreement, as well as the legal principle of pacta sunt servanda, the Chamber decided that the Respondent is liable to pay the Claimant the amount of EUR 76,889.57. 12. Equally, with regard to the claimed interest, the Chamber decided that the Respondent has to pay to the Claimant interest at the rate of 5% p.a. on the outstanding partial amounts as follows: a) 5% p.a. as of 16 July 2012 on the amount of EUR 38,000; b) 5% p.a. as of 1 November 2012 on the amount of EUR 38,889.57. 13. Finally, the Chamber decided that the Respondent is liable to pay to the Claimant the amount of EUR 7,688.96 relating to the 10% penalty fee as foreseen in the termination agreement. ***** III. Decision of the Dispute Resolution Chamber 1. The claim of the Claimant, Player B, is accepted. 2. The Respondent, Club L, has to pay to the Claimant, within 30 days as from the date of notification of this decision, the amount of EUR 7,688.96 as well as the amount of EUR 76,889.57, plus 5% interest p.a. on the latter amount until the date of effective payment as follows: a. 5% p.a. as of 16 July 2012 on the amount of EUR 38,000; b. 5% p.a. as of 1 November 2012 on the amount of EUR 38,889.57. 3. If the aforementioned sums plus interest are not paid within the stated time limit, the present matter shall be submitted, upon request, to the FIFA Disciplinary Committee for consideration and a formal decision. 4. The Claimant is directed to inform the Respondent immediately and directly of the account number to which the remittances are 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. 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 Dispute Resolution Chamber: Jérôme Valcke Secretary General Encl.: CAS directives