F.I.F.A. – Commissione per lo Status dei Calciatori (2014-2015) – controversie tra società – ———- F.I.F.A. – Players’ Status Committee (2014-2015) – 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 14 January 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.

F.I.F.A. - Commissione per lo Status dei Calciatori (2014-2015) – controversie tra società – ---------- F.I.F.A. - Players’ Status Committee (2014-2015) – 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 14 January 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 23 August 2013, the club from country B, Club A (hereinafter: the Claimant) and the club from country D, Club C (hereinafter: the Respondent), concluded a loan agreement for the loan transfer of the player, Player E (hereinafter: “the player”) from the Claimant to the Respondent. 2. The aforesaid loan agreement stipulated, inter alia, that: “[The Respondent] is obliged to pay for the temporary transfer (hosting) of the player the remuneration in the manner stated below: Prior to entering into this contract: EUR 25,000 On 31 October 2013: EUR 25,000 (Bank from country D check will begiven for this payment) Unless [the Respondent] pays the second instalment by 31 October 2013, [the Respondent] is obliged to pay interest on late payment in the amount of 30% p.a. from the owed sum up to the moment of payment.” 3. On 25 August 2014, the Claimant lodged a claim in front of FIFA against the Respondent for breach of contract. The Claimant indicated that the Respondent had paid the first instalment of EUR 25,000 “prior to the entering into the contract”. However, the Claimant stated that the Respondent had failed to pay the second instalment of EUR 25,000. 4. The Claimant explained that the Respondent had issued a cheque but that said cheque was “supported by insufficient funds”. Thereafter, by means of an exchange of correspondence, the parties agreed upon 10 November 2013 as the new payment date for the second instalment. However, the Respondent again failed to pay the second instalment. In view of the foregoing, the Claimant requested the payment of EUR 25,000 plus 30% interest p.a. as from 11 November 2013 as well as EUR 117 for damages, EUR 1,440 for legal fees and CHF 2,000 for costs of proceedings. 5. Despite having been granted a deadline extension by FIFA, upon request of the Respondent, to provide its position regarding the claim, the Respondent did not make any further statements during the course of the investigation. 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 Procedural Rules were applicable to the matter at hand. In this respect, he referred to art. 21 of the Rules Governing the Procedures of the Players’ Status Committee and the Dispute Resolution Chamber (edition 2014) as well as to the fact that the present matter was submitted to FIFA on 25 August 2014, thus after 1 August 2014. Therefore, the Single Judge concluded that the 2014 edition of the Rules Governing the Procedures of the Players’ Status Committee and the Dispute Resolution Chamber (hereinafter: 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 2014 edition of the Regulations on the Status and Transfer of Players and, on the other hand, to the fact that the claim was lodged in front of FIFA on 25 August 2014. In view of the foregoing, the Single Judge concluded that the 2014 edition of the Regulations on the Status and Transfer of Players (hereinafter: the Regulations) is applicable to the case at hand as to the substance. 3. Furthermore, the Single Judge confirmed that, on the basis of art. 3 par. 1 and par. 2 of the Procedural Rules in connection with art. 23 par. 1 and par. 3 as well as art. 22 lit. f) of the Regulations, he was competent to deal with the present matter since it concerned a dispute between two 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 which 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 EUR 25,000 from the Respondent, indicating that the Respondent had failed to pay the second instalment of the loan compensation agreed upon in the loan agreement dated 23 August 2013. 6. Furthermore, the Single Judge stressed that the Respondent never took position in the present matter, although having been invited to do so by FIFA. Therefore, the Single Judge deemed that, in this way, the Respondent renounced its right of defence and accepted the allegations of the Claimant. 7. As a consequence of the aforementioned consideration, the Single Judge established that, in accordance with art. 9 par. 3 of the Procedural Rules, he shall take a decision upon the basis of the documents on file. 8. In this respect, the Single Judge emphasized once more that the Respondent had not contested the allegations of the Claimant and had, thus, not provided any valid argument which would justify the non-payment of the second instalment of the loan compensation. Therefore, the Single Judge decided that the Respondent had failed to respect the terms of the loan agreement it had entered into with the Claimant on 23 August 2013. 9. Consequently, the Single Judge held 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, the Single Judge held that the Respondent has to pay the Claimant the amount of EUR 25,000. 10. Having established the above, the Single Judge went on to examine the Claimant’s request to be awarded with interest of 30% for late payment, basing its request on the provision contained in the loan agreement that reads as follows: “Unless [the Respondent] pays the second instalment by 31 October 2013, [the Respondent] is obliged to pay interest on late payment in the amount of 30% p.a. from the owed sum up to the moment of payment.” 11. After analysing the relevant provision contained in the loan agreement, the Single Judge concluded that a clause stipulating an interest rate of 30% p.a. for late payment is to be considered as manifestly disproportionate and exorbitant, and as such, cannot be enforced. In view of the foregoing, the Single Judge held that the relevant clause contained in the transfer agreement concluded between the parties should be disregarded and that, as an alternative and in accordance with the longstanding practice of the Players’ Status Committee, the Respondent has to pay 5% default interest on the outstanding instalment. 12. In this respect, the Single Judge recalled that the parties had agreed upon 10 November 2013 as the new deadline for the payment of the second instalment of the loan compensation. Consequently, the Single Judge decided that the aforementioned interest shall be applied as of 11 November 2013. 13. In addition, as regards the claimed legal expenses, the Single Judge referred to art. 18 par. 4 of the Procedural Rules as well as to its long-standing and wellestablished jurisprudence, in accordance with which no procedural compensation shall be awarded in proceedings in front of the Players’ Status Committee. Consequently, the Single Judge decided to reject the Claimant’s request relating to legal fees. 14. Subsequently, the Single Judge analysed the request of the Claimant corresponding to compensation for damages in the amount of EUR 117. In this regard, the Single Judge 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 the damage suffered or its quantity. 15. In conclusion, the Single Judge decided to partially accept the claim of the Claimant and determined that the Respondent is liable to pay to the Claimant the total amount of EUR 25,000 plus 5% interest p.a. on said amount as from 11 November 2013 until the date of effective payment. 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 EUR 25,000. Consequently, the Single Judge concluded that the maximum amount of costs of the proceedings corresponds to CHF 5,000. 19. In conclusion, taking into account the degree of success as well as that the Respondent never took stance in the procedure, the Single Judge of the Players’ Status Committee determined the costs of the current proceedings to CHF 5,000, 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 EUR 25,000 plus 5% interest p.a. on said amount as of 11 November 2013 until the date of effective payment. 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 claim lodged by the Claimant is rejected. 5. The final amount of costs of the proceedings in the amount of CHF 5,000 are to be paid by the Respondent within 30 days as from the date of notification of the present decision as follows: 5.1. The amount of CHF 4,000 has to be paid to FIFA to the following bank account with reference to case nr. XXXX: UBS Zurich Account number 366.677.01U (FIFA Players’ Status) Clearing number 230 IBAN: CH27 0023 0230 3666 7701U SWIFT: UBSWCHZH80A 5.2. The amount of CHF 1,000 has to be paid directly to the Claimant. 6. The Claimant is directed to inform the Respondent immediately and directly of the account number to which the remittances under points 2. and 5.2. above are to be made 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 Deputy Secretary General Encl. CAS Directives