F.I.F.A. – Dispute Resolution Chamber / Camera di Risoluzione delle Controversie – labour disputes / controversie di lavoro (2016-2017) – fifa.com – atto non ufficiale – Decision 22 September 2016
Decision of the
Single Judge of the sub-committee of the Dispute Resolution Chamber (DRC)
passed on 22 September 2016,
by Taku Nomiya (Japan),
Single Judge of the sub-committee of the DRC,
on the claim presented by the club,
Club A, country B
as Claimant
against the club,
Club C, country D
as Respondent
regarding solidarity contribution in connection with the transfer
of the Player E
I. Facts of the case
1. According to the player passport issued by the Football Association of country B, the player, Player E, born on 14 May 1995, was registered with Club A (hereafter: the Claimant) as from 13 June 2008 until 30 June 2014.
2. The relevant sporting seasons in country B ran as from 1 July until 30 June of the following year.
3. Moreover, according to the information contained in the Transfer Matching System (TMS), the player was registered with the club from country D, Club C (hereinafter: the Respondent), on 1 September 2015.
4. According to the information contained in the TMS, on 30 June 2015, Club F and the Respondent agreed upon a transfer compensation for the transfer of the player amounting to EUR 3,500,000 payable as follows:
EUR 875,000 on 30 August 2015;
EUR 875,000 on 30 November 2015;
EUR 875,000 on 29 February 2016;
EUR 875,000 on 30 June 2016.
5. On 31 May 2016, the Claimant lodged a claim in front of FIFA claiming its proportion of the solidarity contribution in connection with the transfer of the player from Club F to the Respondent. In particular, the Claimant requested 2.562% of the transfer compensation, plus 5% interest as of each due date.
6. In its reply to the claim, the Respondent pointed out that the Claimant’s position was not consistent since on 25 April 2016, it sent it a default notice requesting 2.762%, whereas it is now claiming 2.562%.
7. In its replica, the Claimant confirmed its claim of 2.562% of the total transfer compensation.
8. In spite of having been invited to do so, the Respondent did not submit any final comments.
II. Considerations of the Single Judge of the sub-committee of the DRC
1. First of all, the Single Judge of the sub-committee of the DRC (hereinafter: the Single 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 31 May 2016. Consequently, the Single Judge concluded that the 2015 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 Single 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 2016), 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 Single 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 2016) and, on the other hand, to the fact that the player was registered with the Respondent on 1 September 2015. In view of the aforementioned, 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 matter at hand as to the substance.
4. The competence of the Single Judge and the applicable regulations having been established, the Single Judge entered into the substance of the matter. In doing so, the Single Judge started by acknowledging the above-mentioned facts of the case as well as the documents contained in the file. However, the Single Judge emphasised that in the following considerations he will refer only to facts, arguments and documentary evidence which he considered pertinent for the assessment of the matter at hand.
5. In this respect, the Single Judge noted that the Claimant is requesting, as solidarity contribution, 2.562% of the transfer compensation paid by the Respondent to the club from country G, Club F. On the other hand, the Single Judge observed that the Respondent does not deny having the obligation to pay its proportion of solidarity contribution to the Claimant, but merely outlines the inconsistency of the latter’s calculations.
6. In continuation, the Single 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.
7. In this respect, the Single Judge recalled that the Football Association of country B had confirmed that the player, born on 14 May 1995, was registered with the Claimant as from 13 June 2008 until 30 June 2014.
8. As a result, the Single Judge concluded that, in accordance with art. 1 of Annexe 5 of the Regulations and since the player had been registered with the Claimant during 73 months between the seasons of his 13th birthday and his 19th birthday, the Respondent is obliged to pay to the Claimant the proportion of 50.41% of 5% of the relevant transfer compensation.
9. Turning his attention to the relevant calculation, the Signe Judge took into account that, according to the relevant transfer agreement dated 30 June 2015, the Respondent agreed to pay the total amount of EUR 3,500,000 in 4 installments of EUR 875,000 each, on the following dates: 30 August 2015, 30 November 2015, 29 February 2016 and 30 June 2016.
10. In view of all of the above, the Single Judge decided to partially accept the claim of the Claimant and held that the Respondent is liable to pay the amount of EUR 88,217.50 to the Claimant as solidarity contribution in relation to the transfer of the player from Club F to the Respondent.
11. Furthermore, and taking into consideration both the claim of the Claimant as well as art. 2 par. 1 of Annexe 5 of the Regulations, the Single Judge decided that the Respondent has to pay, in conformity with the longstanding practice of the DRC, interest at rate of 5% p.a. on the amount of EUR 88,217.50 until the date of effective payment as follows:
- 5% p.a. as of 30 September 2015 on the amount of EUR 22,054.375;
- 5% p.a. as of 31 December 2015 on the amount of EUR 22,054.375;
- 5% p.a. as of 31 March 2016 on the amount of EUR 22,054.375;
- 5% p.a. as of 31 July 2016 on the amount of EUR 22,054.375.
12. 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 DRC, including the Single Judge, relating to disputes regarding training compensation and the solidarity mechanism, 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).
13. In respect of the above, and taking into account that the Claimant is the successful party in the proceeding, the Single Judge concluded that the Respondent has to bear the costs of the current proceedings in front of FIFA.
14. According to Annex A of the Procedural Rules, the costs of the proceedings are to be levied on the basis of the amount in dispute.
15. On that basis, the Single Judge held that the amount to be taken into consideration in the present proceedings is EUR 89,670 related to the claim of the Claimant. Consequently, the Single Judge concluded that the maximum amount of costs of the proceedings corresponds to CHF 10,000 (cf. table in Annex A).
16. As a result, and taking into account the degree of success, the Single Judge determined the costs of the current proceedings to the amount of CHF 8,000, which shall be borne by the Respondent.
III. Decision of the Single Judge of the sub-committee of the DRC
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 88,217.50 plus 5% interest p.a. until the date of effective payment as follows:
- 5% p.a. as of 30 September 2015 on the amount of EUR 22,054.375;
- 5% p.a. as of 31 December 2015 on the amount of EUR 22,054.375;
- 5% p.a. as of 31 March 2016 on the amount of EUR 22,054.375;
- 5% p.a. as of 31 July 2016 on the amount of EUR 22,054.375.
3. In the event that the amount plus interest due to the Claimant in accordance with the above-mentioned point 2 is not paid by the Respondent 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. Any further claim lodged by the Claimant is rejected.
5. The costs of the proceedings in the amount of CHF 8,000 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 3,000 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 5,000 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 remittance under points 2. and 5.2. are to be made and to notify the Single Judge of the sub-committee of the DRC of every payment received.
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Note relating to the motivated decision (legal remedy):
According to art. 58 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
For the Single Judge of the
sub-committee of the DRC:
Marco Villiger
Deputy Secretary General
Enclosed: CAS directives