Decision of the Dispute Resolution Chamber passed in Zurich, Switzerland, on 24 March 2004, in the following composition: Slim Aloulou (Tunisia), Chairman Theo van Seggelen (Netherlands), member Michele Colucci (Italy), member Maurice Watkins (England), member Jean-Marie Philips (Belgium), member on the claim presented by Player A, as Claimant against Club B, as Respondent regarding a contractual dispute between the parties involved
Facts of the case - On 15 July 2002, player A and club B signed an employment contract valid from 12 July 2002 until 31 May 2003, according to which the player was entitled to receive a monthly salary of X (from October 2002 until April 2003 in the total amount of X), and signing-on fees in the total amount of X, to be paid in the following conditions: - X, 15 days after the signature of the contract, - X, in October 2002, - X, in January 2003, - X, in May 2003. - The player was also entitled to receive, among other financial privileges, the amount of X as match bonus, for each match he would play in the starting eleven and X if part of the 18. In this regard, the player is claiming the amount of X. The Football Association C did not inform the FIFA Administration about the number of matches that the player played for its affiliated club during the 2002/2003 sports season, despite having been requested to do so. - With regard to the financial rights stipulated in this employment contract, the player asserts that he has only received the amount of X as signing-on fees, which was paid to him within 15 days after the signature of the contract and therefore, the amount of X remained outstanding. - However, on 14 July 2003, the player and the club entered into a new contract valid until 31 May 2004, according to which, player A waived his right to receive the aforementioned amount, which was still outstanding under the first employment contract, provided that club B would comply with the following contractual obligations: - X, in accordance with clause 2 of the contract, as compensation for the amounts that were due under the first employment contract, to be paid in three separate instalments, in particular, on 6 August 2003 (X), 1 September 2003 (X) and 1 December 2003 (X). - X, in accordance with clause 3 of the contract, to be paid in five separate instalments, one in advance (in the amount of X) and the other four on 31 October 2003, 31 January 2004, 31 March 2004 and 30 April 2004, in the amount of X each. - X as match bonus per match, in accordance with clause 4 of the contract. - X, regarding two return flight tickets to Y, in accordance with clause 7 of the contract. - Finally, the club is responsible to provide the player with transport and accommodation, in accordance with clause 6 of the contract. A Copy of the aforementioned contract has been provided to the FIFA Administration. - Player A has informed the FIFA Administration that, by the present date and with respect to the second employment contract, he has only received the amount of X from club B (paid to him in December 2003). - The player remained with club B until 27 February 2004. On this date, due to the amounts claimed by the player and mainly, to the aforementioned lack of reply from club B, the FIFA Administration authorized player A, at his request, to sign for another club of his choice. - In light of the above, and after deducting the amounts that he recognises to have already received from club B (with respect to both employment contracts), player A is presently claiming the total amount of X, in accordance with the content of the second employment contract, as follows: - X, which corresponds to the amount outstanding under the first contract, in accordance with clause 8 of the second contract, which content stipulates that, If payments are late more 2
than 30 days, full compensation will be requested from FIFA for 2002/2003 contract and plus 2003/2004 contract. - X, in accordance with clause 3 of the second contract. - X with regard to 11 match bonuses for the 2003/2004 sports season, in accordance with clause 4 of the second contract. In this respect, the Football Association C has informed the FIFA Administration that, with regard to the 2003/2004 sports season and by 20 February 2004, the player had only participated in 7 matches for its affiliated club. - Flight tickets in the amount of X, in accordance with clause 7 of the second contract. - Car rental in the amount of X, in accordance with clause 6 of the second contract. Player A has not provided the FIFA Administration with any evidence concerning this expense and moreover, the relevant contract does not mention a specific amount to be paid by the club, in this regard. - Legal expenses in the amount of X. Evidence of these expenses has been provided to the FIFA Administration. - Despite several deadlines given by the FIFA Administration in order to be provided with the club s position on the present matter, club B has not offered any reaction to date. 3
Considerations of the Dispute Resolution Chamber The Dispute Resolution Chamber shall review disputes coming under its jurisdiction pursuant to art. 42 of the revised FIFA Regulations for the Status and Transfer of Players, at the request of one of the parties to the dispute. According to art. 42, par. 1 lit. (b) of the revised FIFA Regulations for the Status and Transfer of Players, the triggering elements of the dispute (i.e. whether a contract was breached, with or without just cause, or sporting just cause), will be decided by the Dispute Resolution Chamber. If an employment contract is breached by a party, the Dispute Resolution Chamber is responsible to verify whether a party is accountable for compensation and outstanding payments. Also, the Dispute Resolution Chamber will establish the amount of compensation to be paid and decide whether sports sanctions must be imposed (cf. art. 42, par. 1, b, ii and iii in connection with art. 22 and 23 of the aforementioned Regulations). Consequently, the Dispute Resolution Chamber is the competent body to decide on the present litigation concerning the alleged breach of contract between the claimant and the respondent. Once its competence was thus established, the Dispute Resolution Chamber went on to treat the substance of the case. It was noted that player A is claiming the payment of several outstanding amounts based on his employment contracts with club B, signed on 15 July 2002 (hereinafter: first contract) and 14 July 2003 (hereinafter: second contract), respectively. The Dispute Resolution Chamber acknowledged that player A, in support of his allegations, has provided the FIFA Administration with copies of the aforementioned employment contracts. Regarding player A financial claim, the members of the Chamber reached the conclusion that most of the claimed financial privileges as well as the respective amounts, are effectively contractually stipulated in the relevant employment contracts. 4
However, concerning the match bonuses, the Dispute Resolution Chamber considered that the player is only entitled to receive the total amount of X, taking into consideration the amounts stipulated in clause 4 of the second contract (X per match) and the number of matches that he participated for club B (7 matches), which were duly specified in the list provided to the FIFA Administration by the Football Association C. The claimant s inability to prove the expenses connected with his car rent, left the members of the Chamber with no other choice but to reject this part of the claim. Furthermore, the Dispute Resolution Chamber stressed that, in accordance with its well-established jurisprudence, the parties legal expenses are not taken into consideration and therefore, these would not be granted to the player. In addition to the aforementioned, the members of the Chamber took into consideration that player A acknowledged having received the amount of X from club B in December 2003. The Dispute Resolution Chamber underlined the fact that, club B failed to provide the FIFA Administration with its position on the present matter, despite having been given several opportunities to do so, which was interpreted as a sign of recognition from the club B, of its breach of contract. In light of the above, and for all the aforementioned reasons, the Dispute Resolution Chamber reached the conclusion that club B has unilaterally breached its labour contract with player A without just cause. The Dispute Resolution Chamber therefore decided to partially accept player A s claim. Consequently, club B shall be liable to pay the player the outstanding amounts that are duly stipulated in the first and second employment contracts, as well as the amounts that the player was entitled to receive until the end of the second contract, i.e. until 31 May 2004, after deduction of the previously mentioned payment already effectuated by the club B. In conclusion, the members of the Chamber condemned club B to pay player A the amounts of X corresponding to the outstanding amounts under the first contract (in accordance with clause 8 of the second contract), X in accordance with clause 3 of the second contract, X as match bonuses in accordance with clause 4 of the second contract, and X regarding flight tickets in accordance with clause 7 of the second contract. Finally, the Dispute Resolution Chamber confirmed the termination of the working relationship between player A and club B. 5
Decision of the Dispute Resolution Chamber 1. The claim of player A is partially accepted. 2. The respondent, club B, must pay the total amounts of X and X to the claimant, player A. 3. Club B is directed to pay the amount due to player A within 30 days as from the date of the notification of this decision. 4. In the event that the debt of the Respondent is not paid within the stated deadline, an interest rate of 5% per year will apply. 5. If the aforementioned sums are not paid within the stipulated deadline, the present matter shall be submitted to FIFA s Disciplinary Committee, so that the necessary disciplinary sanctions may be imposed. 6. This decision may be appealed before the Court of Arbitration for Sport (CAS) in accordance with art. 60 par. 1 of the FIFA Statutes. The statement of appeal must be sent to the CAS directly within 10 days of receiving notification of this decision and has to contain all elements in accordance with point 2 of the directives issued by the CAS, copy of which we enclose hereto. Within another 10 days following the expiry of the time limit for the filing of the statement of appeal, the appellant shall file with the CAS a brief stating the facts and legal arguments giving rise to the appeal (cf. point 4 of the directives). The full address and contact numbers of the CAS are the following: Avenue de l Elysée 28 1006 Lausanne Tel: +41 21 613 50 00 Fax: +41 21 613 50 01 e-mail: info@tas-cas.org www.tas-cas.org 6
For the Dispute Resolution Chamber: Urs Linsi General Secretary Enclosed: CAS directives 7