Solidarity Contribution
Texto da decisão
Decision of the Dispute Resolution Chamber
passed in Zurich, Switzerland, on 23 September 2005,
in the following composition:
Slim Aloulou (Tunisia), Chairman
Theo Van Seggelen (Netherlands), member
Michele Colucci (Italy), member
David Mayebi (Cameroon), member
John Didulica (Australia), member
Philippe Diallo (France), member
Paulo Rogerio Amoretty Souza (Brazil), member
Eissa M. Selah Al-Housaini (U.A.E.), member
Peter Friend (Australia), member
on the claim presented by
Club A,
as Claimant
against
Club R
as Respondent
regarding the solidarity contribution related to the transfer of the player
D
./…
Facts of the case:
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The player D was born on 10 June 1981.
On 31 August 2004, the club A presented a complaint at its Association, which the
latter remitted to FIFA, against the club R regarding payment of the solidarity
contribution in respect of the transfer of the federative rights to the player D from
the club M to the club R.
According to the Association, the player D was registered with the club A as of 6
March 1992 until 26 February 1997, between the ages of 10 and 15, for 6 sport
seasons.
The player D was transferred from club M to R on 18 February 2004, when the player
was 22 years old.
A transfer contract was signed by the clubs M and R, in which the parties agreed on
a transfer amount totalling USD 1,800,000.
The Association provided the FIFA Administration with a copy of the relevant
transfer agreement concluded between M and R. the Association remarked that the
transfer amount of USD 1,800,000 is established in the contract in clause 2 and
clause 9. The clause 2 stated a direct payment to M of USD 1,100,000 and clause 9
established a payment of USD 700,000 to a company (Galen Consulting LTD) to
which the club M owed economical benefits in relation with the transfer of the
player D.
According to the article 25 of the FIFA Regulations for the Status and Transfer of
Players (edition September 2001), the new club concerned has to distribute 5 % of
this compensatory amount to the club(s) where the player has played between the
ages of 12 and 23.
In view of the above the Club A is claiming the relevant solidarity contribution.
The FIFA Administration requested the Respondent club R to pay the respective
amount of solidarity contribution to the club A or to provide valid reasons for not
doing so.
However, the Respondent has failed to answer FIFA Administration’s requests and
has ignored every letter sent to it.
Considerations of the Dispute Resolution Chamber
The members of the Dispute Resolution Chamber were summoned to pass a decision on
this matter by the Chairman pursuant to Art. 1 point 6) of the Rules Governing the
Practice and Procedures of the Dispute Resolution Chamber.
The Dispute Resolution Chamber of the FIFA Players’ Status Committee shall review
disputes coming under its jurisdiction pursuant to Art. 42 of the FIFA Regulations for
the Status and Transfer of Players, edition September 2001, (hereinafter: the
Regulations) at the request of one of the parties to the dispute.
According to art. 25 of the Regulations it falls within the purview of the Dispute
Resolution Chamber to review disputes concerning the distribution of the solidarity
contribution.
Consequently, the Chamber established that it was competent to deal with the present
litigation.
Distribution of the Solidarity Contribution for the Player D
(Club A /Club R)
Page 2 of 5
In continuation, the Chamber reproached the behaviour of the Respondent, who never
took position in the dispute, despite having been asked to do so by the FIFA
administration on several occasions. The deciding body emphasized that in this way the
Respondent renounced to its right to defence and accepts the allegations of the
Claimant.
Subsequently , and entering into the substance of the matter the Chamber first referred
to article 25 of the Regulations, which establishes that the new club of the player is
obliged to distribute 5% of any compensation paid to the player’s previous club to
those club(s) where the player has played between the ages of 12 and 23.
In the present case, the Chamber outlined that the period to be taken into
consideration went from the sporting season 1993/1994, when the player was 12, until
the sporting season 2003/2004, at the age of 23.
The Chamber made further reference to Art. 10 of the Regulations governing the
Application of the Regulations for the Status and Transfer of Players (edition September
2001), which provides the figures for the distribution of the solidarity contribution,
according to the time the player was effectively trained by a specific club.
In the case at hand, the deciding body acknowledged that according to the documents
sent by the National Association, the player D was registered for the club A from 6
March 1992 to 26 February 1997.
Consequently, the Chamber concluded that the period of effective training to be taken
into account in the light of the Regulations corresponds to 4 years namely the sporting
seasons 1993/1994 and 1996/1997.
Therefore, the Chamber established that, in accordance with the breakdown provided
for in Article 10 of the Regulations governing the Application of the Regulations for the
Status and Transfer of Players (edition September 2001) and the aforementioned
reasons, the Claimant is entitled to receive 30% of the 5% of the compensation paid in
relation to the transfer of the federative rights to the player D from the M to the club
R.
The Chamber noted that AFA had presented a copy of the transfer contract concluded
between M and the R. Therein it could be ascertained that the amount paid for the
transfer of the federative rights to the player was USD 1,800,000.
However, this amount was paid as follows:
- Clause 2 of the relevant contract stated a direct payment by R to the club M of
USD 1,100,000 and
- Clause 9 established a payment by the Respondent of USD 700,000 to a company
(Galen Consulting LTD) to which the club M owed economical benefits in relation
with the transfer of the player D.
Distribution of the Solidarity Contribution for the Player D
(Club A /Club R)
Page 3 of 5
In this respect, the Chamber was of the unanimous opinion that, under these
circumstances, the entire amount of compensation paid by club R for the acquisition of
the player’s federative rights has to be taken into consideration.
Therefore, the Chamber concluded that the amount of USD 1,800,000 has to be put at
the basis of the calculation of the solidarity contribution due to the club A.
Taking into account all of the above the Dispute Resolution Chamber decided that the
Respondent must pay to the Claimant 30% of the 5% of the transfer compensation paid
in relation to the transfer of the player D from club M to the club R, i.e. USD 27,000.
Distribution of the Solidarity Contribution for the Player D
(Club A /Club R)
Page 4 of 5
Decision of the Dispute Resolution Chamber
1.
The claim of the Club A is accepted.
2.
The Respondent R has to pay the amount of USD 27,000 to the Claimant.
3.
The amount due to the Claimant has to be paid by the Respondent within 30 days
as from the date of 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. Furthermore, the FIFA
Administration will be entitled to submit the file to the Disciplinary Committee.
5.
The Claimant is directed to inform the Respondent immediately of the account
number to which the remittance is to be made and to notify the Dispute
Resolution Chamber of every payment received.
6.
According to art. 60 par. 1 of the FIFA Statutes this decision may be appealed
before the Court of Arbitration for Sport (CAS). 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 Beaumont 2
1012 Lausanne
Switzerland
Tel: +41 21 613 50 00
Fax: +41 21 613 50 01
e-mail: [email protected]
www.tas-cas.org
For the Dispute Resolution Chamber:
Urs Linsi
General Secretary
Encl.
Distribution of the Solidarity Contribution for the Player D
(Club A /Club R)
Page 5 of 5