F.I.F.A. – Camera di Risoluzione delle Controversie (2014-2015) – controversie di lavoro – ———- F.I.F.A. – Dispute Resolution Chamber (2014-2015) – labour disputes – official version by www.fifa.com – Decision of the Dispute Resolution Chamber passed in Zurich, Switzerland, on 10 April 2015, in the following composition: Thomas Grimm (Switzerland), Deputy Chairman John Bramhall (England), member Jon Newman (USA), member Taku Nomiya (Japan), member Mario Gallavotti (Italy), member on the claim presented by the player, Player A, from country B as Claimant against the club, Club C, from country D as Respondent regarding an employment-related dispute arisen between the parties
F.I.F.A. - Camera di Risoluzione delle Controversie (2014-2015) - controversie di lavoro - ---------- F.I.F.A. - Dispute Resolution Chamber (2014-2015) - labour disputes – official version by www.fifa.com –
Decision of the
Dispute Resolution Chamber
passed in Zurich, Switzerland, on 10 April 2015,
in the following composition:
Thomas Grimm (Switzerland), Deputy Chairman
John Bramhall (England), member Jon Newman (USA), member Taku Nomiya (Japan), member Mario Gallavotti (Italy), member
on the claim presented by the player,
Player A, from country B
as Claimant
against the club,
Club C, from country D
as Respondent
regarding an employment-related dispute arisen between the parties
I. Facts of the case
1. On 25 July 2012, the player from country B, Player A (hereinafter: the Claimant), and the club from country D, Club C (hereinafter: the Respondent) concluded an employment contract (hereinafter: the contract), valid from 1 August 2012 until 31 July 2014.
2. On 22 August 2013, the parties signed a termination agreement, by means of which the parties terminated the contract and established that the Claimant was entitled to receive the amount of EUR 656,000 divided as follows:
- EUR 56,000 on 24 August 2013;
- EUR 150,000 on 1 December 2013;
- EUR 150,000 on 1 March 2014;
- EUR 150,000 on 1 June 2014;
- EUR 150,000 on 1 September 2014.
3. Clause 4 of the termination agreement establishes that “the club will deliver the player the guaranteed checks corresponding to the aforementioned amounts not later than Sunday, August 25th 2013”.
4. On 23 December 2014, the Claimant lodged a claim against the Respondent, claiming the payment of the outstanding payments in accordance with the termination agreement, amounting to EUR 450,000 plus 5% interest as of due dates.
5. In this respect, the Claimant held that the parties terminated the contract by mutual agreement and that, in accordance with clause 4 of the termination agreement, the Respondent delivered 5 checks to guarantee the payment of the different instalments. The Claimant held that the Respondent only made funds available to cover the first two instalments.
6. According to the Claimant, the checks regarding the third and fourth instalments were returned by the bank for insufficient funds and the cheque regarding the fifth instalment was never processed, since the Respondent had no funds in the bank.
7. Finally, the Claimant affirmed that although he put the Respondent in default several times, the latter did neither reply nor pay the relevant instalments.
8. The Respondent replied to the claim, stating “being fully committed to refund the full amount of EUR 450,000 to the player”. Moreover, the Respondent alleged it was facing financial difficulties and asked the proceedings to be suspended as well as to pay the amount in instalments.
9. The Claimant did not accept the offer, stating that the parties had already agreed on payment in instalments under the termination agreement and the Respondent did not comply with it.
II. Considerations of the DRC
1. First of all, the Dispute Resolution Chamber (hereinafter: the Chamber or the DRC) analysed whether it was competent to deal with the matter at stake. In this respect, the DRC took note that the present matter was submitted to FIFA on 23 December 2014. Consequently, the DRC concluded that the 2014 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 DRC referred to art. 3 par. 2 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 2014) the DRC is competent to deal with the matter at stake, which concerns an employment–related dispute with an international dimension between a player from country B and a club from country D.
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, the DRC confirmed that in accordance with art. 26 par. 1 and 2 of the Regulations (edition 2014) and considering that the present claim was lodged in front of FIFA on 23 December 2014, the 2014 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 and the applicable regulations having been established, the members of the DRC 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 and first of all, the DRC acknowledged that following the conclusion of an employment contract on 25 July 2012, the Claimant and the Respondent had concluded a termination agreement, by means of which the parties terminated the contractual relationship and agreed that the Respondent would pay to the Claimant the amount of EUR 656,000 divided in 5 instalments as follows: a) 56,000 on 24 August 2013; b) EUR 150,000 on 1 December 2013; c) EUR 150,000 on 1 March 2014; d) EUR 150,000 on 1 June 2014; and e) EUR 150,000 on 1 September 2014.
6. In particular, the members of the DRC took note that it remained undisputed that the Respondent delivered 5 different cheques for the respective instalments to guarantee the payment of EUR 656,000, in accordance with clause 4 of the termination agreement.
7. Subsequently, the Chamber took note that the Claimant lodged a claim in front of FIFA on 23 December 2014 indicating that the Respondent had not fulfilled its obligations as established in the termination agreement, failing to pay the three last instalments of EUR 150,000 each. In particular, the Chamber took note that, according to the Claimant, the third and fourth cheque were returned due to insufficient funds and the fifth cheque was never processed by the bank.
8. Moreover, the members of the Chamber noted that the Respondent had accepted the allegations of the Claimant, recognizing owing him the amount claimed. In this respect, the members of the Chamber considered that the Respondent only alleged having financial difficulties to justify its failure to pay the amounts claimed.
9. On account of the aforementioned considerations, the members of the Chamber declared that they could only come to the conclusion that the Respondent had failed to pay to the Claimant the amounts as agreed upon in the termination agreement, totalling EUR 450,000, corresponding to the last three instalments of EUR 150,000 each. Consequently, the DRC concluded that, in accordance with the general legal principle of “pacta sunt servanda”, the Respondent is liable to pay the Claimant the amount of EUR 450,000.
10. Equally, the DRC decided that the Claimant has to return to the Respondent the three cheques amounting to EUR 150,000 each, bearing the date of 1 March 2014, 1 June 2014 and 1 September 2014, respectively.
11. In continuation and with regard to the Claimant's request for interest, the DRC decided that the Claimant is entitled to receive interest at the rate of 5% p.a. on the outstanding amounts as from the respective due dates.
12. The Chamber concluded its deliberations in the present matter by establishing that any further claim lodged by the Claimant is rejected.
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, within 30 days as from the date of notification of this decision, the amount of EUR 450,000 plus 5% interest until the date of effective payment as follows:
a. 5% p.a. as of 2 March 2014 on the amount of EUR 150,000;
b. 5% p.a. as of 2 June 2014 on the amount of EUR 150,000;
c. 5% p.a. as of 2 September 2014 on the amount of EUR 150,000;
3. In the event that the aforementioned sum plus interest is not paid with the stated limit, the present matter shall be submitted, upon request, to the FIFA Disciplinary Committee for consideration and a formal decision.
4. The Claimant is ordered to return to the Respondent within 30 days as from the date of notification of this decision, the three cheques amounting to EUR 150,000 each, bearing the date of 1 March 2014, 1 June 2014 and 1 September 2014, respectively.
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.
*****
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
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