F.I.F.A. – Dispute Resolution Chamber / Camera di Risoluzione delle Controversie – labour disputes / controversie di lavoro (2018-2019) – fifa.com – atto non ufficiale – Decision 26 June 2019

Decision of the

Dispute Resolution Chamber

passed in Zurich, Switzerland, on 26 June 2019,

in the following composition:

Geoff Thompson (England), Chairman

Eirik Monsen (Norway), member

Stéphane Burchkalter (France), member

Jospeh Antoine Bell (Cameroon), member

Stefano La Porta (Italy), member

on the claim presented by the player,

Player A, Country B,

as Claimant

against the club,

Club C, Country D

as Respondent

regarding an employment-related dispute

between the parties

I. Facts of the case

1. On 24 January 2018, the Player of Country B, Player A (hereinafter: the player or the Claimant) concluded an employment contract (hereinafter: the contract) with the Club of Country D, Club C (hereinafter: the club or the Respondent), valid between 24 January and 31 May 2018.

2. According to the contract, the player was entitled to receive the total amount of USD 90,000, broken down as follows:

 USD 45,000 ‘after the contract being signed by both parties’;

 USD 15,000 due on 28 February 2018;

 USD 15,000 due on 30 March 2018;

 USD 15,000 due on 30 April 2018.

3. According to the player, he fulfilled his contractual obligations towards the club in the period between 24 January and 31 May 2018, the date on which the contract expired by law.

4. Furthermore, according to the player, the club failed to fulfill ‘any of its obligations’ and ‘did not pay anything to him’.

5. On 1 November 2018, the player lodged a claim for outstanding remuneration and requested the payment of the following amounts:

 USD 45,000, plus 5% interest p.a. as from 25 January 2018;

 USD 15,000, plus 5% interest p.a. as from 1 March 2018;

 USD 15,000, plus 5% interest p.a. as from 31 March 2018;

 USD 15,000, plus 5% interest p.a. as from 1 May 2018.

6. The player further requested that the club be ordered to pay procedural costs.

7. The player considered that, since the club failed to pay any of the contractually amounts to him, it should be ordered to pay him the total contractual value of USD 90,000.

8. Despite being invited to do so, the club failed to reply to the player’s claim.

II. Considerations of the Dispute Resolution Chamber

1. First of all, the Dispute Resolution Chamber (hereinafter also referred to as DRC or Chamber) analysed whether it was competent to deal with the case at hand. In this respect, the Chamber took note that the present matter was submitted to FIFA on 1 November 2018. Consequently, the DRC concluded that the 2018 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 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 June 2018), 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 Player of Country B and a Club of Country D.

3. Furthermore, the Chamber analysed which regulations should be applicable as to the substance of the matter. In this respect, it confirmed that in accordance with art. 26 par. 1 and 2 of the Regulations on the Status and Transfer of Player (edition June 2018), and considering that the present claim was lodged on 1 November 2018, the June 2018 edition of said regulations (hereinafter: the 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 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. Having said that, the members of the Chamber acknowledged that, on 24 January 2018, the Claimant and the Respondent signed an employment contract pursuant to which the Respondent undertook to pay to the Claimant the total amount of USD 90,000 for the whole duration of the employment relationship.

6. More in particular, the DRC observed that the Claimant’s financial entitlements were to be paid in 4 instalments, as follows: USD 45,000 ‘after the contract being signed by both parties’; USD 15,000 due on 28 February 2018; USD 15,000 due on 30 March 2018; and USD 15,000 due on 30 April 2018.

7. The Dispute Resolution Chamber further acknowledged that, according to the Claimant, the Respondent had failed to pay him any of the amounts specified in the contract.

8. Furthermore, the Chamber took note that the Respondent, for its part, failed to present its response to the claim of the Claimant, despite having been invited to do so. In this way, so the Chamber deemed, the Respondent renounced its right to defence and, thus, accepted the allegations of the Claimant.

9. Moreover, and as a consequence of the aforementioned consideration, the Chamber established that in accordance with art. 9 par. 3 of the Procedural Rules it shall take a decision upon the basis of the documents already on file.

10. Having said that, the Chamber highlighted that it remained uncontested that the Respondent had not fulfilled its financial obligations set forth in the employment contract signed between the parties and that it failed to pay to the Claimant the amount of USD 90,000, corresponding to the entire value of the contract.

11. On account of the above considerations and of the documentation on file, the DRC decided that, in accordance with the general legal principle of “pacta sunt servanda”, the Respondent is liable to pay the amount of USD 90,000 to the Claimant.

12. In addition, taking into account the Claimant’s claim, the Chamber decided to award the Claimant interest of 5% p.a. on each of the relevant instalments, as of the day following their due date, as per the employment contract.

13. Subsequently, the DRC analysed the request of the Claimant regarding the imposition of procedural costs on the Respondent. In this respect, the Chamber referred to art. 18 par. 2 of the Procedural Rules, according to which “DRC proceedings relating to disputes between clubs and players in relation to the maintenance of contractual stability as well as international employment related disputes between a club and a player are free of charge”. Thus, the Chamber rejected this part of the Claimant’s claim.

14. The Dispute Resolution Chamber concluded its deliberations in the present matter by establishing that the claim of the Claimant is partially accepted.

15. Furthermore, taking into account the consideration under number II./3. above, the Chamber referred to par. 1 and 2 of art. 24bis of the Regulations, which stipulate that, with its decision, the pertinent FIFA deciding body shall also rule on the consequences deriving from the failure of the concerned party to pay the relevant amounts of outstanding remuneration and/or compensation in due time.

16. In this regard, the Chamber pointed out that, against clubs, the consequence of the failure to pay the relevant amounts in due time shall consist of a ban from registering any new players, either nationally or internationally, up until the due amounts are paid and for the maximum duration of three entire and consecutive registration periods.

17. Therefore, bearing in mind the above, the DRC decided that, in the event that the Respondent does not pay the amounts due to the Claimant within 45 days as from the moment in which the Claimant, following the notification of the present decision, communicates the relevant bank details to the Respondent, a ban from registering any new players, either nationally or internationally, for the maximum duration of three entire and consecutive registration periods shall become effective on the Respondent in accordance with art. 24bis par. 2 and 4 of the Regulations.

18. Finally, the Chamber recalled that the above-mentioned ban will be lifted immediately and prior to its complete serving upon payment of the due amounts, in accordance with art. 24bis par. 3 of the Regulations.

***

III. Decision of the Dispute Resolution Chamber

1. The claim of the Claimant, Player A, is partially accepted.

2. The Respondent, Club C, has to pay to the Claimant outstanding remuneration in the amount of USD 90,000, plus 5% interest p.a. until the date of effective payment as follows:

a. 5% p.a. as of 25 January 2018 on the amount of USD 45,000;

b. 5% p.a. as of 1 March 2018 on the amount of USD 15,000;

c. 5% p.a. as of 31 March 2018 on the amount of USD 15,000;

d. 5% p.a. as of 1 May 2018 on the amount of USD 15,000.

3. Any further claim lodged by the Claimant is rejected.

4. The Claimant is directed to inform the Respondent, immediately and directly, preferably to the e-mail address as indicated on the cover letter of the present decision, of the relevant bank account to which the Respondent must pay the amount mentioned under point 2. above.

5. The Respondent shall provide evidence of payment of the due amount in accordance with point 2. above to FIFA to the e-mail address psdfifa@fifa.org, duly translated, if need be, into one of the official FIFA languages (English, French, German, Spanish).

6. In the event that the amount due plus interest in accordance with point 2. above is not paid by the Respondent within 45 days as from the notification by the Claimant of the relevant bank details to the Respondent, the Respondent shall be banned from registering any new players, either nationally or internationally, up until the due amounts are paid and for the maximum duration of three entire and consecutive registration periods (cf. art. 24bis of the Regulations on the Status and Transfer of Players).

7. The ban mentioned in point 6. above will be lifted immediately and prior to its complete serving, once the due amounts are paid.

8. In the event that the aforementioned sum plus interest is still not paid by the end of the ban of three entire and consecutive registration periods, the present matter shall be submitted, upon request, to FIFA’s Disciplinary Committee for consideration and a formal decision.

*****

Note relating to the motivated decision (legal remedy):

According to article 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 Dispute Resolution Chamber:

Emilio García Silvero

Chief Legal & Compliance Officer

Encl.: CAS directives