DRC Overdue Payables
Texto da decisão
REF. FPSD-xxxxx
Decision of the
Dispute Resolution Chamber
passed on 14 November 2024
regarding an employment-related dispute concerning
the player A
COMPOSITION:
Clifford J. HENDEL (USA & France), Deputy Chairperson
Iñigo RIESTRA (Mexico), Member
Gonzalo DE MEDINILLA (Spain), Member
CLAIMANT:
Player A, Country A
RESPONDENT:
Club B, Country B
pg. 2
REF. FPSD-xxxxx
I. Facts of the case
1.
According to the Country A player, Player A (hereinafter: the Player or the Claimant), as the
start of a process to go on loan to the Country B club Club B (hereinafter: the Club or the
Respondent), he signed a form (hereinafter: Form) on 2 September 2023, which stated that
his contract, although not yet signed, would end on 31 May 2024.
2.
Clause 5 of this document established the following:
“5. The Period of the Agreement
This Agreement is being made for the 2023/2024 season from 09.09.2023 until
31.05.2024. At the end of the period of the Agreement the directives of the "Registration"
Codex will apply to the Player.”
3.
Furthermore, clause 6.a of the Form stipulated that the Club undertook to pay the Player
nine monthly wage payments in the amount of CURRENCY COUNTRY B 56,472, which
amounts to CURRENCY COUNTRY B 42,000 net, totalling CURRENCY COUNTRY B 508,248
for the period of the contract.
4.
On 4 September 2023, the Player and the Club concluded an employment contract
(hereinafter: Contract) valid for the 2023-2024 football season in Country B. The Contract
included an option for the Club to extend the agreement for the 2024/2025 football season.
5.
In clause 3, the parties stipulated the Player’s remuneration as follows (quoted verbatim):
“3. Remuneration for the 2023-2024 football season
3.1. Basic salary: Basic salary in total sum of Country B Currency 508,248 gross,
equivalent to EUR gross, reflecting a total sum of Country B Currency 378,000 net
equivalent to USD 108,000 net (the "Basic Salary"). The Basic Salary shall be paid to the
Player in 9 monthly payments of Country B Currency 56,472 gross, reflecting a sum of
Country B Currency 42,000, equivalent to USD 12,000 net, starting from 10 of Oct 2023
3.2. If the team qualify to upper playoff(1-6) in the end of the regular season, he will
receive a bonus of Country B Currency 35,000 net, equivalent to USD 10,000 net.
3.3. If the team win the Country B cup, he will receive a bonus of Country B Currency
35,000 net, equivalent to USD 10,000 net.
3.4. If the team finish as the champion of the Country B league, he will receive a bonus
of Country B Currency 35,000 net, equivalent to USD 10,000 net.
3.5. Additional benefits: 1. The player receives a car from the club. 2. The player receives
a house rent of up to Country B Currency 4,000 from the club, for the avoidance of
doubt1 if the house rises above this amount' the player will pay it himself or the team
will pay the difference and deduct from the player's salary. 3. The player receives a 3
ticket(for himself his wife and the son) from his place to City A and return ticket Each
payment shall be paid to the Player by the 9th day of the month after the month for
which the payment is being made.
pg. 3
REF. FPSD-xxxxx
3.6. If the Player is transferred or sub-loaned to another Club during the term of the
Agreement, the aforesaid payments shall not be paid to the Player during the period of
his transfer or loan, including the wages, bonuses, premiums, etc.
3.7. It is hereby clarified that the bonuses, premiums, or any payment of any other bonus
shall not be deemed, in any event or circumstances, as labor wages, and shall not be
taken into consideration when calculating the basis for the Player's entitlement to social
benefits, if applicable, such as severance payments, pension contributions, prior notice,
vacation pay and the like.”
6.
By correspondence dated 10 November 2023, the Player put the Club in default and
requested payment of USD 24,000, setting a 15 days’ time limit in order to remedy the
default. The Player argued that in the event of non-compliance with the payment, he could
terminate the Contract with just cause. Furthermore, the Player requested that the Club
ensured his work permit and visa.
7.
On 9 August 2024, the Claimant put the Respondent in default again and requested
payment of USD 28,000, setting a 10 days’ time limit in order to remedy the default. In this
regard, the Player stated that the debt was composed of 25% of the monthly salary for
October 2023, 25% of the monthly salary for November 2023, 100% of the monthly salary
for May 2024, and a bonus for qualifying among the top six teams.
II. Proceedings before FIFA
8.
On 28 August 2024, the Claimant filed the claim at hand before FIFA. A summary of the
parties’ position is detailed below.
a. Position of the Claimant
9.
According to the Claimant, the Club failed to pay 25% of his salary for October 2023, 25%
of his salary for November 2023, 100% of his salary for May 2024, and a bonus for qualifying
among the top six teams.
10. Additionally, the Player argued that, although the Contract did not specify the date of
expiration, the Form stated that the employment contract was valid until 31 May 2024.
However, this date does not coincide with the Country A Federation’s registration period,
which starts on 8 July 2024. In this regard, the Club breached the RSTP by stating the end
of the employment contract on 31 May 2024, which falls outside the registration period.
Therefore, the Player asserted that he is entitled to pro-rata salaries for June and July 2024.
11. Based on the abovementioned, the Player argued that he is entitled to:
a. USD 3,000 of the salary for October 2023, plus 5% interest p.a as of 10 October
2023;
pg. 4
REF. FPSD-xxxxx
b. USD 3,000 of the salary for November 2023, plus 5% interest p.a as of 10
November 2023;
c. USD 12,000 for the full salary for May 2024, plus 5% interest p.a as of 10 May 2024;
d. USD 10,000 for the bonus, plus 5% interest p.a as of 10 May 2024;
e. USD 12,000 for the full salary of June 2024, plus 5% interest p.a as of 10 June 2024.
f. USD 10,451.61 for the pro-rata salary from June 10 to 7 July, plus 5% interest p.a.
as of the 10 of July 2024.
12. The requests for relief of the Claimant were the following:
“As a consequence of all of the above, I am requesting the FIFA DRC to order the Club to
pay me the following amounts:
USD 50.010,45 as outstanding remuneration + 5% interest as from the due dates.
Moreover, sanction according to art. 12 bis should be applied, on top of disciplinary
sanctions for the breach of contract by failing to pay the salaries for such a long period,
plus having me undergo unnecessary stress because of the Visa requirement.”
b. Position of the Respondent
13. Despite having been invited to do so, the Respondent failed to reply to the claim.
pg. 5
REF. FPSD-xxxxx
III. Considerations of the Dispute Resolution Chamber
a. Competence and applicable legal framework
14. First of all, the Dispute Resolution Chamber (hereinafter: the Chamber or DRC) analysed
whether it was competent to deal with the case at hand. In this respect, it took note that
the present matter was presented to FIFA on 28 August 2024 and submitted for decision
on 14 November 2024. Taking into account the wording of art. 34 of the March 2023 edition
of the Procedural Rules Governing the Football Tribunal (hereinafter: the Procedural Rules),
the aforementioned edition of the Procedural Rules is applicable to the matter at hand.
15. Furthermore, the Chamber referred to art. 2 par. 1 of the Procedural Rules and observed
that in accordance with art. 23 par. 1 in combination with art. 22 par. 1 lit. b) of the
Regulations on the Status and Transfer of Players (October 2024 edition), 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 Country A player
and an Country B club.
16. Subsequently, 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 Players (October 2024 edition), and
considering that the present claim was lodged on 28 August 2024, the June 2024 edition of
said regulations (hereinafter: the Regulations) is applicable to the matter at hand as to the
substance.
b. Burden of proof
17. The Chamber recalled the basic principle of burden of proof, as stipulated in art. 13
par. 5 of the Procedural Rules, according to which a party claiming a right on the basis of
an alleged fact shall carry the respective burden of proof. Likewise, the Chamber stressed
the wording of art. 13 par. 4 of the Procedural Rules, pursuant to which it may consider
evidence not filed by the parties, including without limitation the evidence generated by or
within the Transfer Matching System (TMS).
c. Merits of the dispute
18. Having established the competence and the applicable regulations, the Chamber entered
into the merits of the dispute. In this respect, the Chamber started by acknowledging all
the above-mentioned facts as well as the arguments and the documentation on file.
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
assessing the matter at hand.
pg. 6
REF. FPSD-xxxxx
i. Main legal discussion and considerations
19. The Chamber then moved to the substance of the matter and took note of the fact that this
is a claim of a player against a club for overdue payables.
20. The Chamber recalled that, according to the Player, the Club failed to pay him the balance
of the salaries for October and November 2023, the full salary of May 2024, and a bonus
stipulated in the Contract. Additionally, as the Form stated that the employment contract
was valid until 31 May 2024, which does not coincide with the Country A transfer period,
the Player asserted that he is entitled to the salary for June 2024 and a prorated amount
for July 2024.
21. Since the Respondent did not provide its position on the claim, and according to the longstanding jurisprudence of the Football Tribunal, it must be considered that it renounced its
right to defence. Consequently, the decision shall be taken based on the documentation
already in the file (i.e., the statements and documents presented by the Claimant).
22. In this context, the Chamber acknowledged that its task was to determine (i) the end date
of the Contract and (ii) whether the Club owes a debt to the Player.
23. First, the Chamber reverted to the arguments of the Player and in particular, to the
statement that the Club breached art. 10 of the RSTP and shall be liable for paying the
salaries until the date when the registration period in Country A opened.
24. In this respect, the Chamber mentioned that the Contract stated that it was valid until the
end of the 2023/2024 football season in Country B. While it is true that the Contract did
not stipulate an exact date, from the information retrieved from TMS, the Chamber
observed that the end date of the loan was 31 May 2024. Additionally, the loan agreement
concluded between the clubs, also retrieved from TMS, stipulated that the loan would
end with the conclusion of the competition period in Country B. According to TMS, the
competition period in Country B ended on 30 May 2024.
25. Therefore, the Chamber considered that all the elements indicate that the Contract was
valid until the end of May 2024, which is consistent with the term “football season” used in
the Contract.
26. Hence, the Chamber concluded that the parties agreed that the expiration term of the
Contract was at the end of May 2024, without referencing the start of the registration
period in Country A, which was on 8 July 2024.
27. Nevertheless, and while it is true that the end date of the Contract did not coincide with
the registration period in Country A, the Chamber highlighted that the RSTP do not
establish that, if the end date of a loan agreement does not fall within one of the
registration periods of the association of the former club, the contract with the new club
pg. 7
REF. FPSD-xxxxx
will be considered extended until such date or that the new club shall be liable for paying
additional salaries.
28. For the sake of completeness, the Chamber found important to point out that regardless
of the expiration date of the Contract, both the Contract and the Form were consistent in
stating that the parties fixed a total value to be paid for the employment relationship.
29. In this regard, the Chamber clarified that the Player is not entitled to any amount other
than those fixed in the Contract. In addition, the Chamber pointed out that the Player failed
to provide any evidence to the contrary.
30. Then, the Chamber noted that the Player argued that the Club failed to pay him (i) 25% of
the salary for October 2023, (ii) 25% of the salary for November 2023, (iii) the full salary for
May 2024, (iv) the full salary for June 2024, (v) the prorated salary for July 2024 and (vi) a
bonus for classifying in the top six of the league.
31. First, the Player argued that the Club failed to pay him 25% of the salary for October and
November 2023, amounting to USD 3,000 each. The Club, having failed to respond to the
claim, did not provide any evidence of having paid this amount.
32. In this regard, the Chamber observed that, although the Contract stated an amount in
CURRENCY COUNTRY B, the parties specified an equivalence in USD. Hence, in the
Chamber’s opinion, the intention of the parties was for the Player to receive a specified
amount in USD. Otherwise, they would not have included the amount also in USD.
Additionally, the Player is requesting the amount in USD, and the Club did not dispute
such request.
33. Therefore, the Chamber decided to award the Player USD 3,000 as the balance for October
2023 and USD 3,000 as the balance for November 2023.
34. Additionally, the Chamber noted that the Player requested interest starting from 10
October 2023 and 10 November 2023 respectively. However, clause 3.5 stipulated that the
payment was to be made on the 9th day of the following month. Thus, since the Player is
requesting the balance of the salaries for October and November, the Chamber decided to
award interest at 5% p.a. starting from 10 November 2023 and 10 December 2023.
35. Regarding the salary for May 2024, the Player stated that the Club failed to pay him it in full
and owes him USD 12,000. In this case, the Club also did not provide any evidence of having
paid this amount and the Chamber decided to award the Player USD 12,000. Based on
clause 3.5 of the Contract, the Chamber decided to award interest at 5% p.a. starting from
10 June 2024, instead of 10 May 2024, as requested.
36. In connection with the salaries for June and July 2024, the Chamber reiterated that the
Contract ended at the end of May 2024. Therefore, the Player is not entitled to the salaries
for June and July.
pg. 8
REF. FPSD-xxxxx
37. For the sake of completeness, the Chamber also remarked that the parties stipulated a
total amount for the employment relationship to be paid in nine instalments. The first
instalment was to be paid in October 2023, corresponding to the salary for September 2023
and, therefore, the last instalment was to be paid in June 2024, corresponding to the salary
for May 2024, which is already being awarded to the Player. In any case, the Player would
not have been entitled to any amount other than those specified in the Contract.
38. Therefore, the Chamber decided to reject this claim.
39. Finally, the Player argued that he is entitled to a bonus of USD 10,000, as the Club qualified
among the top six teams of the league. While it is true that clause 3.2 of the Contract stated
that if the team qualified to the playoffs at the end of the regular season, the Player would
be entitled to a bonus of CURRENCY COUNTRY B 35,000, equivalent to USD 10,000, it is
also true that the Player failed to provide any evidence demonstrating that the condition
was fulfilled.
40. Thus, the Chamber considered that, based on art. 13 par. 5 of the Procedural Rules, it is
not possible to award the Player this amount, as he did not demonstrate that he was
entitled to it.
ii. Art. 12bis of the Regulations
41. In continuation, the Chamber referred to art. 12bis par. 2 of the Regulations, which
stipulates that any club found to have delayed a due payment for more than 30 days
without a prima facie contractual basis may be sanctioned in accordance with art. 12bis par.
4 of the Regulations.
42. To this end, the Chamber confirmed that the Player put the club in default of payment of
the amounts sought and granted the club a 10-day deadline to cure such breach of
contract.
43. Accordingly, the Chamber confirmed that the Club had delayed a due payment without a
prima facie contractual basis for more than 30 days. It followed that the criteria enshrined
in art. 12bis of the Regulations was met in the case at hand.
44. The Chamber further established that by virtue of art. 12bis par. 4 of the Regulations it has
competence to impose sanctions on the Club. On account of the above, the Chamber
decided to impose a warning on the Club in accordance with art. 12bis par. 4 lit. a) of the
Regulations.
45. In this connection, the Chamber highlighted that a repeated offence will be considered as
an aggravating circumstance and lead to a more severe penalty in accordance with art.
12bis par. 6 of the Regulations.
pg. 9
REF. FPSD-xxxxx
iii. Compliance with monetary decisions
46. Finally, taking into account the applicable Regulations, the Chamber referred to art. 24 par.
1 and 2 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.
47. In this regard, the DRC highlighted 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. The overall
maximum duration of the registration ban shall be of up to three entire and consecutive
registration periods.
48. Therefore, bearing in mind the above, the DRC decided that the Respondent must pay the
full amount due (including all applicable interest) to the Claimant within 45 days of
notification of the decision, failing which, at the request of the Claimant, a ban from
registering any new players, either nationally or internationally, for the maximum duration
of three entire and consecutive registration periods shall become immediately effective on
the Respondent in accordance with art. 24 par. 2, 4, and 7 of the Regulations.
49. The Respondent shall make full payment (including all applicable interest) to the bank
account provided by the Claimant in the Bank Account Registration Form, which is attached
to the present decision.
50. The DRC 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. 24 par. 8 of
the Regulations.
d. Costs
51. The Chamber referred to art. 25 par. 1 of the Procedural Rules, according to which
“Procedures are free of charge where at least one of the parties is a player, coach, football agent,
or match agent”. Accordingly, the Chamber decided that no procedural costs were to be
imposed on the parties.
52. Likewise, and for the sake of completeness, the Chamber recalled the contents of art. 25
par. 8 of the Procedural Rules and decided that no procedural compensation shall be
awarded in these proceedings.
pg. 10
REF. FPSD-xxxxx
53. Lastly, the DRC concluded its deliberations by rejecting any other requests for relief made
by any of the parties.
pg. 11
REF. FPSD-xxxxx
Decision of the Dispute Resolution Chamber
1.
The claim of the Claimant, Player A, is partially accepted.
2.
The Respondent, Club B, must pay to the Claimant the following amount:
- USD 18,000 as outstanding remuneration plus 5% interest p.a. as follows:
- 5% interest p.a. over the amount USD 3,000 of as from 10 November 2023 until the date
of effective payment;
- 5% interest p.a. over the amount USD 3,000 of as from 10 December 2023 until the date
of effective payment;
- 5% interest p.a. over the amount USD 12,000 of as from 10 June 2024 until the date of
effective payment.
3.
Any further claims of the Claimant are rejected.
4.
A warning is imposed on the Respondent.
5.
Full payment (including all applicable interest) shall be made to the bank account indicated
in the enclosed Bank Account Registration Form.
6.
Pursuant to art. 24 of the Regulations on the Status and Transfer of Players, if full payment
(including all applicable interest) is not made within 45 days of notification of this decision,
the following consequences shall apply:
1. The Respondent shall be banned from registering any new players, either nationally or
internationally, up until the due amount is paid. The maximum duration of the ban shall
be of up to three entire and consecutive registration periods.
2. The present matter shall be submitted, upon request, to the FIFA Disciplinary Committee
in the event that full payment (including all applicable interest) is still not made by the
end of the three entire and consecutive registration periods.
7.
The consequences shall only be enforced at the request of the Claimant in accordance
with art. 24 par. 7 and 8 and art. 25 of the Regulations on the Status and Transfer of Players.
pg. 12
REF. FPSD-xxxxx
8.
This decision is rendered without costs.
For the Football Tribunal:
Emilio García Silvero
Chief Legal & Compliance Officer
pg. 13
REF. FPSD-xxxxx
NOTE RELATED TO THE APPEAL PROCEDURE:
According to article 57 par. 1 of the FIFA Statutes, this decision may be appealed against before
the Court of Arbitration for Sport (CAS) within 21 days of receipt of the notification of this
decision.
NOTE RELATED TO THE PUBLICATION:
FIFA may publish this decision. For reasons of confidentiality, 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 17 of the Procedural Rules Governing the Football
Tribunal).
CONTACT INFORMATION
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396 Alhambra Circle, 6th floor, Coral Gables, Miami, Florida, USA 33134
legal.fifa.com | [email protected] | T: +41 (0)43 222 7777
pg. 14