F.I.F.A. – Dispute Resolution Chamber / Camera di Risoluzione delle Controversie – labour disputes / controversie di lavoro (2019-2020) – fifa.com – atto non ufficiale – Decision 5 May 2020

Decision of the

Dispute Resolution Chamber (DRC) judge

passed on 5 May 2020,

by Pavel Pivovarov (Russia), DRC judge

on the claim presented by the player,

Mohammed Ahmed Atwa Ahmed Aboustait, Egypt

represented by Mr Habib Grami

as Claimant

against the club,

Al Raed Saudi Club, Saudi Arabia

as Respondent

regarding an employment-related dispute

between the parties

I. Facts of the case

1. According to the information contained in the Transfer Matching System (hereinafter: the TMS), on 27 January 2018, the Egyptian player, Mohammed Ahmed Atwa Ahmed Aboustait (hereinafter: the Claimant or the player) and the Saudi Arabian club, Al Raed Saudi Club (hereinafter: the Respondent or the club) concluded an employment contract (hereinafter: the contract).

2. Subsequently, on 23 July 2019, the parties concluded a “Financial Clearance” (hereinafter: the agreement), according to which the Respondent committed itself to pay to the Claimant the amount of Saudi Riyal (SAR) 379,642, payable within 60 days as from the date of signature of the agreement.

3. On 24 November 2019, the Claimant allegedly put the Respondent in default of payment of SAR 379,642. As per the player, the default letter remained unanswered by the Respondent.

4. On 4 January 2020, the Claimant lodged a claim in front of FIFA against the Respondent alleging that the latter had breached the agreement and requesting the payment of SAR 379,642, plus 5% interest.

5. Despite being invited to do so, the Respondent did not reply to the player’s claim.

II. Considerations of the Dispute Resolution Chamber (DRC) judge

1. First of all, the Dispute Resolution Chamber judge (hereinafter: the DRC Judge) analysed whether he was competent to deal with the case at hand. In this respect, he referred to the wording of art. 21 of the 2019 edition of the Rules Governing the Procedures of the Players’ Status Committee and the Dispute Resolution Chamber (hereinafter: the Procedural Rules) as well as to the fact that the present matter was submitted to FIFA on 4 January 2020 and decided on 5 May 2020. Therefore, the DRC Judge concluded that the 2019 edition of the Procedural Rules is applicable to the matter at hand.

2. Furthermore, the DRC Judge analysed which regulations should be applicable as to the substance of the matter. In this respect, he confirmed that in accordance with art. 26 par. 1 and 2 of the Regulations on the Status and Transfer of Players, and considering that the present claim was lodged on 4 January 2020, the January 2020 edition of said regulations (hereinafter: the Regulations) is applicable to the matter at hand as to the substance.

3. Subsequently, the DRC Judge referred to art. 3 par. 1 and 2 of the Procedural Rules and confirmed that, in accordance with art. 24 par. 1 and 2 in combination with art. 22 lit. b of the Regulations, he is competent to adjudicate on the present employment-related dispute between an Egyptian player and a Saudi Arabian club.

4. His competence and the applicable regulations having been established, the DRC Judge entered into the substance of the matter, by acknowledging the above-mentioned facts as well as the documentation contained in the file in relation to the substance of the matter. However, the DRC 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. In this respect, the DRC Judge acknowledged that the player and the club signed an employment contract on 27 January 2018.

6. In addition, the DRC Judge further took note of the fact that, on 23 July 2019, the parties concluded an agreement pursuant to which the Respondent undertook to pay to the Claimant “the remaining of [the player’s] contract”, i.e. SAR 379,642, within 60 days as from the date of signature of the agreement.

7. The DRC Judge noted that, on 4 January 2020, the Claimant lodged a claim against the Respondent in front of FIFA, requesting the total amount of SAR 379,642, plus 5% interest.

8. Subsequently, the DRC Judge took into account that the Respondent, for its part, failed to present its response to the claim of the Claimant, in spite of having been invited to do so. In this context, the DRC Judge considered that the Respondent renounced its right to defence.

9. Furthermore, as a consequence of the aforementioned consideration, the DRC Judge concurred that in accordance with art. 9 par. 3 of the Procedural Rules he shall take a decision upon the basis of the documents already on file, in other words, upon the statements and documents presented by the Claimant.

10. Taking into account the documentation presented by the Claimant in support of his petition as well as the lack of response from the Respondent, the DRC Judge concluded that the Claimant had substantiated his claim pertaining to outstanding remuneration (SAR 379,642) with sufficient documentary evidence.

11. On account of the aforementioned considerations, the DRC Judge established that the Respondent failed to remit the Claimant’s remuneration in the total amount of SAR 379,642.

12. Consequently, the DRC Judge decided that, in accordance with the general legal principle of pacta sunt servanda, the Respondent is liable to pay to the Claimant outstanding remuneration in the total amount of SAR 379,642.

13. In addition, taking into account the Claimant’s request as well as the constant practice of the DRC in this regard, the DRC Judge decided that the Respondent must pay to the Claimant interest of 5% p.a. on the aforementioned amount as of the due date, i.e. 24 August 2019, until the date of effective payment.

14. Furthermore, taking into account the consideration under number II.2. above, the DRC Judge 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 amount of outstanding remuneration.

15. In this regard, the DRC Judge 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 amount is paid and for the maximum duration of three entire and consecutive registration periods.

16. Therefore, bearing in mind the above, the DRC Judge decided that, in the event that the Respondent does not pay the amount 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.

17. The DRC Judge recalled that the above-mentioned ban will be lifted immediately and prior to its complete serving upon payment of the due amount, in accordance with art. 24bis par. 3 of the Regulations.

***

III. Decision of the Dispute Resolution Chamber (DRC) Judge

1. The claim of the Claimant, Mohammed Ahmed Atwa Ahmed Aboustait, is accepted.

2. The Respondent, Al Raed Saudi Club, has to pay the Claimant SAR 379,642, plus interest at the rate of 5% p.a. as from 24 August 2019 until the date of effective payment.

3. 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 plus interest mentioned under point III.2. above.

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

5. In the event that the amount plus interest due in accordance with point III.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 amount is 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).

6. The ban mentioned in point III.5. above will be lifted immediately and prior to its complete serving, once the due amounts are paid.

7. 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.

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Note related to the publication:

The FIFA administration may publish decisions issued by the Players’ Status Committee or the Dispute Resolution Chamber. Where such decisions contain confidential information, FIFA may decide, at the request of a party within five days of the notification of the motivated decision, to publish an anonymised or a redacted version (cf. article 20 of the Rules Governing the Procedures of the Players’ Status Committee and the Dispute Resolution Chamber).

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 (CAS)

Avenue de Beaumont 2

CH-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 (DRC) Judge:

Emilio García Silvero

Chief Legal & Compliance Officer