F.I.F.A. – Commissione per lo Status dei Calciatori (2015-2016) – controversie tra società – ———- F.I.F.A. – Players’ Status Committee (2015-2016) – club vs. club disputes – official version by www.fifa.com – Decision of the Single Judge of the Players’ Status Committee passed in Zurich, Switzerland, on 11 August 2015, by Geoff Thompson (England) Single Judge of the Players’ Status Committee, on the claim presented by the club, Club A, Country B as Claimant against the club, Club C, Country D as Respondent regarding a contractual dispute between the parties relating to the Player E

F.I.F.A. - Commissione per lo Status dei Calciatori (2015-2016) – controversie tra società – ---------- F.I.F.A. - Players’ Status Committee (2015-2016) – club vs. club disputes – official version by www.fifa.com – Decision of the Single Judge of the Players’ Status Committee passed in Zurich, Switzerland, on 11 August 2015, by Geoff Thompson (England) Single Judge of the Players’ Status Committee, on the claim presented by the club, Club A, Country B as Claimant against the club, Club C, Country D as Respondent regarding a contractual dispute between the parties relating to the Player E I. Facts of the case 1. On 20 December 2013, the Club of Country B, Club A (hereinafter: the Claimant), and the Club of Country D, Club C (hereinafter: the Respondent), signed a transfer agreement for the transfer of the Player E (hereinafter: the player) from the Claimant to the Respondent. 2. In accordance with the transfer agreement, the Respondent would pay the Claimant the amount of USD 1,200,000 as follows: - USD 300,000 on 20 March 2014; - USD 300,000 on 30 June 2014; - USD 300,000 on 10 October 2014; and - USD 300,000 on 15 December 2014. 3. Art. 2.1.1. of the transfer agreement stipulates “(…) If [the Respondent] does not make the payment of the agreed value of the parcels within established and exceeded 07 (seven) days to pay without payment having been made, [the Respondent] shall pay to [the Claimant], as contractual fine, for each delay, the percentage of 10% (ten percent) of the value of each overdue parcel (…) plus default interest of 1% per month and inflation.” 4. On 20 March 2015, the Claimant lodged a claim in front of FIFA against the Respondent stating that the latter, despite having sent reminders on 23 July 2014, 4 August 2014 and 9 February 2015, had paid the amount due on 30 June 2014 late and failed to pay the instalments due on 10 October and 15 December 2014. 5. As a result, the Claimant requested to be awarded as follows: - USD 300,000 concerning the payment due on 10 October 2014; - USD 300,000 concerning the payment due on 15 December 2014; - USD 30,000 concerning the fine for the payment due on 30 June 2014; - USD 30,000 concerning the fine for the payment due on 10 October 2014; - USD 30,000 concerning the fine for the payment due on 15 December 2014; - 1% interest per month on USD 300,000 as from 30 June 2014 until 26 September 2014; - 1% interest per month on USD 300,000 as from 10 October 2014; - 1% interest per month on USD 300,000 as from 15 December 2014; - EUR 20,000 in legal costs. 6. The Claimant emphasised that in its letters dated 23 July 2014 and 4 August 2014, it had explicitly reserved its right to claim the relevant fine and interest regarding the payment of the 2nd instalment due on 30 June 2014. 7. In reply to the claim lodged against it, the Respondent indicated that the fine as well as the interest rate provided for in the transfer agreement are excessive and disproportionate, reason for which they shall be reduced in accordance with art. 163 of the Swiss Code of Obligations. 8. In the alternative, the Respondent holds that the fine and interest on the 2nd instalment should be considered as “unbalanced”. The Respondent explains that the 2nd instalment had been paid and that the delay was caused due to issues involving the 2014 FIFA World Cup in Brazil “once some matches of this competition were held within the Respondent’s stadium.” In addition, the Respondent made reference to the Claimant’s letter dated 9 February 2015 in which the Claimant confirmed that the 2nd instalment was “finally settled” without mentioning anything in relation to a fine or interest. 9. Finally, in accordance with art. 2.1.1. of the transfer agreement, the Respondent claims that the fine and interest shall only apply as of 7 days from when the payment was to be made. II. Considerations of the Single Judge of the Players’ Status Committee 1. First of all, the Single Judge of the Players’ Status Committee (hereinafter: the Single Judge) analysed which edition of the Rules Governing the Procedures of the Players’ Status Committee and the Dispute Resolution Chamber (hereinafter: Procedural Rules) were applicable to the matter at hand. In this respect, he referred to art. 21 of the Procedural Rules as well as to the fact that the present matter was submitted to FIFA on 20 March 2015. Therefore, the Single Judge concluded that the 2014 edition of the Procedural Rules is applicable to the matter at hand. 2. Subsequently, the Single Judge analysed which edition of the Regulations on the Status and Transfer of Players is 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 and, on the other hand, once again to the fact that the claim was lodged in front of FIFA on 20 March 2015. In view of the foregoing, the Single Judge concluded that the 2015 edition of the Regulations on the Status and Transfer of Players (hereinafter: the Regulations) is applicable to the case at hand. 3. Furthermore, the Single Judge confirmed that, based on art. 3 par. 1 and 2 of the Procedural Rules in connection with art. 23 par. 1 and 3 as well as art. 22 lit. f) of the Regulations, he was competent to deal with the present matter since it concerns a dispute between clubs affiliated to two different associations. 4. The competence of the Single Judge and the applicable regulations having been established, and entering into the substance of the matter, the Single Judge started by acknowledging the above-mentioned facts as well as the arguments and the documentation submitted by the parties. However, the Single Judge emphasised that in the following considerations he will refer only to the facts, arguments and documentary evidence that he considered pertinent for the assessment of the matter at hand. 5. First of all, the Single Judge took note that the Claimant maintained that it is entitled to receive USD 600,000 from the Respondent regarding the 3 rd and 4th instalment of the transfer agreement signed between the parties on 20 December 2013. 6. Equally, the Single Judge noted that the Claimant deemed that in accordance with art. 2.1.1. of the transfer agreement, it was entitled to a penalty fee corresponding to 10% of each unpaid and delayed installment as well as interest at a rate of 1% per month of delay. Finally, the Single Judge noted that the Claimant requested legal costs in the amount of EUR 20,000. 7. Moreover, the Single Judge observed that, in its reply, the Respondent did not dispute that a debt in the amount of USD 600,000 existed towards the Claimant. In fact, the Respondent solely disputed the application of the penalty fee and the interest rate, stressing that they are excessive and disproportionate. 8. Having recalled the aforementioned, the Single Judge first determined that in accordance with the basic legal principle of pacta sunt servanda, which in essence means that agreements must be respected by the parties in good faith, the Respondent has to fulfill its contractual obligations towards the Claimant. Therefore, and considering that there is no dispute in relation to the payment of the 3rd and 4th installment, the Single Judge concluded that the Respondent has to pay the Claimant the amount of USD 600,000 as the outstanding transfer compensation. 9. In continuation, the Single Judge addressed the Claimant’s requests regarding the penalty fee corresponding to 10% of each of the 2 nd , 3 rd and 4th installment of the transfer compensation as well as the Claimant’s request for interest at a rate of 1% per month. 10. In this context, the Single Judge observed that both the penalty fee as well as the interest rate are stipulated in the transfer agreement and, thus, contractually agreed upon between the Claimant and Respondent. Furthermore, and contrary to the Respondent’s opinion, the Single Judge finds that the contractually agreed penalty fee as well as the interest rate are not excessive or disproportionate, and can therefore be granted. 11. As a result, the Single Judge determined to accept the requests of the Claimant regarding the penalty fee and the interest on the 3 rd and 4th installment of the transfer compensation. 12. As to the penalty fee as well as the interest rate regarding the 2nd installment of the transfer compensation, i.e. the instalment that had been paid with delay by the Respondent, the Single Judge duly noted that the Respondent explained that such delay was caused due to issues involving the 2014 FIFA World Cup in Brazil and that the Respondent held that the Claimant already confirmed on 9 February 2015 that such instalment was “finally settled”. 13. In this respect, the Single Judge outlined that he did not consider the arguments of the Respondent in relation to the delay of the payment of the 2 nd installment as valid; the Single Judge finds that no evidence has been rovided that there were any “issues” during this time span and, what is more, the Respondent had ample time at its disposal to anticipate the payment of the relevant installment. Also, after analyzing the Claimant’s letter dated 9 February 2015, the Single Judge did not agree with the Respondent that the Claimant had waived its entitlement to request the fine as well as the interest on the 2nd installment by stating that the payment had been “finally settled”. In the Single Judge’s view, the Claimant merely confirmed to the Respondent that this payment had finally been received. 14. As a consequence of the foregoing considerations, the Single Judge determined that i) the Respondent has to pay to the Claimant the amount of USD 90,000 as a penalty fee corresponding to 10% of the 2nd, 3rd and 4th installment of the transfer compensation, and ii) the Respondent has to pay to the Claimant interest at the rate of 12% p.a. on the amount of USD 900,000 as from the relevant due dates. In this context, the Single Judge agrees with the Respondent that the interest shall only apply as from 7 days of the payment date, as clearly stipulated in art. 2.1.1. of the transfer agreement. 15. As to the legal costs, the Single Judge decides to reject such request in accordance with art. 18 par. 4 of the Procedural Rules. 16. Lastly, the Single 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 Players’ Status Committee including its Single Judge, costs in the maximum amount of CHF 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). 17. In respect of the above, and taking into account that the Claimant is the successful party in the present proceedings, the Single Judge concluded that the Respondent has to bear the full costs of the current proceedings before FIFA. 18. Furthermore and 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. On that basis, the Single Judge held that the amount to be taken into consideration in the present proceedings is USD 690,000. Consequently, the Single Judge concluded that the maximum amount of costs of the proceedings corresponds to CHF 25,000. 19. In conclusion, the Single Judge of the Players’ Status Committee determined the costs of the proceedings to the amount of CHF 15,000, which shall be borne by the Respondent. III. Decision of the Single Judge of the Players’ Status Committee 1. The claim of the Claimant, Club A, is partially 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 USD 600,000 plus default interest as follows: - 12% p.a. on the amount of USD 300,000 as of 8 July 2014 until 26 September 2014; - 12% p.a. on the amount of USD 300,000 as of 18 October 2014 until the date of effective payment; - 12% p.a. on the amount of USD 300,000 as of 23 December 2014 until the date of effective payment. 3. In the event that the aforementioned sum plus interest due to the Claimant is not paid by the Respondent 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. The Respondent has to pay to the Claimant the amount of USD 90,000 as a penalty fee, within 30 days as from the date of notification of this decision. 5. In the event that the amount due to the Claimant in accordance with the above-mentioned number 4. is not paid by the Respondent within the stated time limit, interest at the rate of 5% p.a. will apply as of the expiry of the stipulated time limit and the present matter shall be submitted, upon request, to the FIFA Disciplinary Committee for consideration and a formal decision. 6. Any further claim lodged by the Claimant is rejected. 7. The final costs of the proceedings in the amount of CHF 15,000 are to be paid by the Respondent within 30 days as from the date of notification of the present decision as follows: 7.1. The amount of CHF 10,000 has to be paid to FIFA to the following bank account: UBS Zurich Account number 366.677.01U (FIFA Players’ Status) Clearing number 230 IBAN: CH27 0023 0230 3666 7701U SWIFT: UBSWCHZH80A 7.2. The amount of CHF 5,000 has to be paid directly to the Claimant. 8. The Claimant is directed to inform the Respondent directly and immediately of the account number to which the remittances are to be made in accordance with the above points 2., 4. and 7.2. and to notify the Single Judge of the Players’ Status Committee of every payment received. ***** Note relating to the motivated decision (legal remedy): According to article 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 Single Judge of the Players’ Status Committee: Markus Kattner Acting Secretary General Encl. CAS Directives