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 21 January 2020
Decision of the
Dispute Resolution Chamber (DRC) judge
passed in Zurich, Switzerland, on 21 January 2020,
by Omar Ongaro (Italy), DRC judge
on the claim presented by the player,
Mr Matúš Lacko, Slovakia,
represented by Mrs Markéta Vochoska Haindlová
as Claimant
against the club,
SC Znojmo fotbalový klub a.s, Czech Republic
as Respondent
regarding an employment-related dispute between the parties
I. Facts of the case
1. On 1 July 2017, the Slovak player, Matúš Lacko, (hereinafter: the Claimant), and the Czech club, SC Znojmo fotbalový klub a.s, (hereinafter: the Respondent) concluded an employment contract valid as from the date of signature until 30 June 2019 (hereinafter: the contract).
2. According to article VI, paragraph 1 of the contract “The contracting parties declare that the Player’s remuneration and its individual components and payments term are attached as Appendix No. 1 of this Contract.”
3. Pursuant to Appendix No. 1 of the contract, “the club is obliged to pay to the player a monthly remuneration amounting to CZK 28,000”.
4. On 1 January 2018, the parties amended the contract, according to which the player was entitled to a monthly remuneration amounting to Czech crowns (hereinafter: CZK) 30,000 plus housing allowance equal to CZK 3,000, amounts payable on the last day of following month.
5. On 17 June 2019, “having the club not fulfilled its obligation to provide the player with his monthly remuneration”, the Claimant sent the first reminder to the Respondent asking the payment of the basic monthly remuneration of CZK 30,000 and the housing allowance of CZK 3,000 related to the months of March and April 2019.
6. On 8 July 2019, the Claimant sent the second reminder to the Respondent, claiming “the monthly remuneration amounting to CZK 30,000 for March 2019, April 2019 and May 2019 as well as the housing allowance of CZK 3,000 per month for all three above-mentioned months. The total owed amount is then CZK 99,000.”
7. On 17 July 2019, the Respondent entered into an agreement with FC Vysocina Jihlava, club affiliated to the Fotbalové asociace České republiky, for the transfer of the Claimant. “said transfer would take place from 1 July 2019. (…) FC Vysocina Jihlava, decided to pay to the player the monthly remuneration and the housing for the month of June 2019 which the Club had to pay originally.”
8. On 21 August 2019, the Claimant lodged a claim against the Respondent in front of FIFA, claiming the total amount of CZK 198,000, broken down as follows: a. basic monthly remuneration for March, April and May 2019 equal to a total amount of CZK 90,000 “plus interest at 5% p.a. as of the date of effective payment as overdue payables.”; b. housing Allowance for March, April and May 2019 equal to a total amount of CZK 9,000 “plus interest at 5% p.a. as of the date of effective payment as overdue payables.”; c. “Additional compensation in the sense of art. 17, par. 1., point II. Of FIFA RSTP amounting at least three monthly salaries and three months of housing allowance, i.e. the minimal amount of CZK 99,000.”
9. Despite having been invited to do so, the Respondent did not submit an answer to the claim.
II. Considerations of the DRC judge
1. First of all, the DRC judge analysed whether he was competent to deal with the matter at stake. In this respect, the DRC judge took note that the present matter was submitted to FIFA on 21 August 2019 and decided on 21 January 2020. Taking into account 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), the aforementioned edition of the Procedural Rules is applicable to the matter at hand.
2. Subsequently, the DRC judge referred to art. 3 par. 1 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 on the Status and Transfer of Players, the DRC judge is competent to deal with the matter at stake, which concerns an employment–related dispute with an international dimension between a Slovakian player and a Czech club.
3. Furthermore, the DRC 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, the DRC judge confirmed that, in accordance with art. 26 par. 1 and par. 2 of the said Regulations and considering that the present claim was lodged in front of FIFA on 21 August 2019, the June 2019 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 DRC judge and the applicable regulations having been established, the DRC judge entered into the substance of the matter. In this respect, the DRC judge started by acknowledging all the above-mentioned facts as well as the arguments and the documentation submitted by the parties. However, the DRC judge 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. In this respect, the DRC judge acknowledged that, on 1 July 2017, the Claimant and the Respondent concluded an employment contract valid as from the date of signature until 30 June 2019, pursuant to which the Respondent undertook to pay to the Claimant a monthly salary of CZK 28,000.
6. Moreover, the DRC judge acknowledged that, on 1 January 2018, the Claimant and the Respondent amended the contract, according to which the player was entitled to a monthly remuneration amounting to CZK 30,000 plus housing allowance equal to CZK 3,000, amounts payable on the last day of following month.
7. Furthermore, the DRC judge took note that, on 17 June 2019, “having the club not fulfilled its obligation to provide the player with his monthly remuneration”, the Claimant sent the first reminder to the Respondent asking the payment of the basic monthly remuneration of CZK 30,000 and the housing allowance of CZK 3,000 related to the months of March and April 2019.
8. In addition, the DRC judge took note that, on 8 July 2019, the Claimant sent the second reminder to the Respondent, claiming “the monthly remuneration amounting to CZK 30,000 for March 2019, April 2019 and May 2019 as well as the housing allowance of CZK 3,000 per month for all three above-mentioned months. The total owed amount is then CZK 99,000.”
10. The DRC judge further noted that on 17 July 2019, the Respondent entered into an agreement with FC Vysocina Jihlava, club affiliated to the Fotbalové asociace České republiky, for the transfer of the Claimant. “said transfer would take place from 1 July 2019. (…) FC Vysocina Jihlava, decided to pay to the player the monthly remuneration and the housing for the month of June 2019 which the Club had to pay originally.”
9. Having recalled the above, the DRC judge observed that, the Claimant, in his claim lodged on 21 August 2019, claimed the total amount of CZK 198,000, broken down as follows: a. basic monthly remuneration for March, April and May 2019 equal to a total amount of CZK 90,000 “plus interest at 5% p.a. as of the date of effective payment as overdue payables.”; b. housing Allowance for March, April and May 2019 equal to a total amount of CZK 9,000 “plus interest at 5% p.a. as of the date of effective payment as overdue payables.”; c. “Additional compensation in the sense of art. 17, par. 1., point II. Of FIFA RSTP amounting at least three monthly salaries and three months of housing allowance, i.e. the minimal amount of CZK 99,000.”
10. In continuation, the DRC judge 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 DRC judge deemed, the Respondent renounced its right to defence and, thus, accepted the allegations of the Claimant.
11. In light of the above, the DRC judge highlighted that the Respondent must fulfill its obligations as per employment contract in accordance with the general legal principle of “pacta sunt servanda”. Consequently, the DRC judge decided that the Respondent is liable to pay to the player the remuneration that was outstanding at the time of the claim was lodged, i.e. the amount of CZK 99,000, corresponding to his basic monthly remuneration and accommodation fees for March, April and May 2019.
12. In addition, taking into consideration the claim lodged by the Claimant, as well as the constant practice of the DRC, the DRC judge decided to award the latter 5% interest p.a. on the above mentioned amount calculated as follows:
a. 5% p.a. on the amount of CZK 33,000 as of 1 April 2019 until the date of effective payment;
b. 5% p.a. on the amount of CZK 33,000 as of 1 May 2019 until the date of effective payment;
c. 5% p.a. on the amount of CZK 33,000 as of 1 June 2019 until the date of effective payment.
13. As to the Claimant’s request for additional compensation, the DRC judge noted that the contract expired naturally and was not early terminated by any of the parties. Thus, no compensation whatsoever was due to the Claimant and consequently this part of his claim must be rejected.
14. Furthermore, taking into account the consideration under number II./3. 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 amounts of outstanding remuneration and/or compensation in due time.
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 amounts are 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 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.
17. Finally, the DRC judge 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 DRC judge
1. The claim of the Claimant, Mr Matúš Lacko, is partially accepted.
2. The Respondent, SC Znojmo fotbalový klub a.s, has to pay to the Claimant the amount of CZK 99,000 plus 5% interest p.a. as follows:
d. 5% p.a. on the amount of CZK 33,000 as of 1 April 2019 until the date of effective payment;
e. 5% p.a. on the amount of CZK 33,000 as of 1 May 2019 until the date of effective payment;
f. 5% p.a. on the amount of CZK 33,000 as of 1 June 2019 until the date of effective payment.
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 amounts mentioned under point 2 above.
5. The Respondent shall provide evidence of payment of the due amounts 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 amount is 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.
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Note related to the publication:
The FIFA administration may publish decisions issued by the Players’ Status Committee or the DRC. 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 related to the appeal procedure:
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. 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 DRC judge:
Emilio García Silvero
Chief Legal & Compliance Officer