Labour Disputes
Texto da decisão
REF. FPSD-13351
Decision of the
Dispute Resolution Chamber
passed on 15 May 2024
regarding an employment-related dispute concerning
the player Filippo Falco
COMPOSITION:
Frans DE WEGER (The Netherlands), Chairperson
Mario FLORES CHEMOR (Mexico), member
Alexandra GOMEZ BRUINEWOUD (Uruguay/The Netherlands), member
Dana MOHAMED AL-NOAIMI (Qatar), member
Roy VERMEER (The Netherlands), member
CLAIMANT:
Filippo Falco, Italy
Represented by Piotr Miekus
RESPONDENT:
Crvena Zvezda, Serbia
Represented by Davor Radić
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I. Facts of the case
1.
On 28 January 2021, the Italian player Filippo Falco (hereinafter, the Player) and the Serbian club
Crvena Zvezda (hereinafter, the Club) concluded an employment contract (hereinafter, the Contract),
valid as from 28 January 2021 until 30 June 2024.
2.
In accordance with Clause 3 of the Contract, the Club undertook to pay to the Player (hereinafter,
jointly referred to as the Parties) a net monthly salary of RSD 34,000, payable by the 10th day of the
following month.
3.
Also on 28 January 2021, the Parties concluded an annex to the Contract (hereinafter, the Annex),
valid as from 28 January 2021 until 30 June 2024.
4.
According to Clause 3 of the Annex, the Parties agreed upon the following additional financial
benefits:
In addition to the amounts determined by the Professional Player Contract, the Club shall make
the following payments to the Player:
3.1. Fixed payments:
Loyalty fee: The Player is entitled to a loyalty fee for the period from 28 January 2021 to the 30
June 2024 in total net amount of EUR 2,921,000.00 payable as follows:
- In equal monthly instalments in the net amount of EUR 51,000, starting from February 2021
until June 2024; additionally:
- EUR 50,000.00 net until 15 July 2021
- EUR 50,000.00 net until 15 January 2022
- EUR 50,000.00 net until 15 July 2022
- EUR 50,000.00 net until 15 January 2023
In order to avoid any doubt, the Player is entitled to a sign on fee and a loyalty fee for each
month in which the Player is registered and contractually bound to the Club.
The Club and the Player mutually agree that in case the Annex to the Professional Player
Contract or the Professional Player Contract itself are terminated before the agreed period of
validity or its extension, the Player is entitled to claim a due instalment of sign-on fee and
loyalty fee for every month in which he was registered and contractually bound to the Club
except for greater damage if due.
3.2. Performance Bonuses
- Entering the group stage of UEFA Champions League: EUR 150,000.00 net
- Entering the group stage of UEFA Europa League: EUR 75,000.00 net
- For winning Serbian national title: EUR 50,000.00 net
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- For winning Serbian Cup: EUR 20,000 net
- Bonus for each goal on an official match: EUR 2,000.00 net
- Bonus per each assist on an official match: EUR 1,000.00 net
- Bonus for winning match in Serbian league: EUR 500.00 net
Any performance bonuses for qualifying rounds of UEFA Champions League or UEFA Europa
League are calculated as part of a bonus payment for qualifying into the group stage of the
competition. Bonuses for winning any qualifying rounds and entering the group stage of a
competition are not cumulative.
(…)
4. The Contractual Parties agree that all the amounts in this Annex, whether in respect of
signature, loyalty fees, prizes and/or premiums (calculated by effect), presented in the net
amount in EUR are to be paid to the Player in the official currency (RSD of the Republic of
Serbia) (…).
5. The monthly instalment of loyalty fees provided for by Art. 3 Paragraph 1 of this Annex shall
be paid no later than the 25th of the month for the previous month.
Prizes for the achieved sports results or premiums set forth in this Annex shall be paid no later
than 15.07 of the current year for the previous competitive season.
5.
As per Clause 8 of the Annex:
“(…) The Player agrees that he does not have the right to premiums and performance bonuses
which arise during his loan to another club”.
6.
On 11 April 2022, the Player put the Club in default and requested payment of EUR 434,000 net,
granting a 10-day deadline for the Respondent to comply with its obligations.
7.
On 21 April 2022, the Club replied to the Player that the amount due was EUR 305,500, and informed
the Player that the delay was due to the Covid-19 pandemic. The Club also proposed to settle the
above-mentioned amount in several instalments to be paid as from April to July 2022.
8.
On 22 April 2022, the Player replied to the Club suggesting other payment dates and also informing
that “As an alternative, Mr. Falco would be available to deal with you a plan of payments due (as well as
they have been detailed above plus the next salaries and the bonuses accrued until the end of the season)
if you are available to get free him at the end of this season”.
9.
On 25 May 2022, the Parties concluded an addendum to the Contract by way of which they agreed
on a payment schedule for the outstanding amounts due to the Player.
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10. On 21 June 2022, the Player sent a new default notice to the Club, requesting the payment of
EUR 153,500 net and granting the latter with a 10-day deadline.
11. On 1 September 2022, the Parties and the Italian club Cagliari Calcio S.p.A. (hereinafter, Cagliari)
agreed on the loan transfer of the Player from the Club to Cagliari as from 1 September 2022 until
30 June 2023 (hereinafter, the Loan Agreement).
12. According to Clause 5.5 of the Loan Agreement:
“Considering the suspension of their employment relationship and agreement, FK Crvena
Zvezda will not continue to pay the Player’s fixed salary as set out in article 3 of the Professional
Player Contract and article 3.1 of the Annex to the Professional player contract signed between
the Player and FK Crvena Zvezda, in line with this, during the suspension of their employment
relationship, the Player shall not be entitled to any performance related bonuses as set out in
article 3.4 of the Employment Contract and article 3.2 of the Annexe signed by the Player and
FC Crvena Zvezda”.
13. Also on 1 September 2022, the Parties concluded a settlement agreement (hereinafter, the
Settlement Agreement) by way of which the Club undertook to pay to the Player the outstanding
amounts of EUR 125,000 net on 15 October 2022 and EUR 132,000 net on 30 June 2024.
14. On 29 November 2022, the Player sent another default notice to the Club requesting the payment
of EUR 125,000 net as per the Settlement Agreement, granting the Club a 10-day deadline.
15. On 22 December 2022, the Player lodged a claim against the Club before FIFA in request for the
amount of EUR 125,000 net.
16. During the course of the above-mentioned proceedings, the Club paid to the Player the amount of
EUR 76,000.
17. On 12 January 2023, the Parties concluded an addendum to the settlement agreement (hereinafter,
the Addendum) in accordance with which the Club undertook to pay to the Player EUR 24,500 on 1
March 2023 and EUR 25,500 on 1 May 2023, and the Player withdraw the claim before FIFA.
18. On 2 March 2023, the Player lodged a new claim before FIFA requesting payment of EUR 24,500 net
as per the first instalment of the Addendum.
19. The above-mentioned claim was subsequently withdrawn after the Club paid to the Player the
claimed amount.
20. On 8 May 2023, the Player had to undergo a knee operation as a consequence of an injury he
suffered while being on loan with Cagliari.
21. At the end of June 2023, the Club requested the Player’s immediate return to Belgrade.
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22. On 3 July 2023, the Club requested the Player to return to Belgrade again.
23. On 4 July 2023, the Player requested the Club to respect his rights by allowing him to continue and
complete his rehabilitation in Italy until 15 July 2023. In his request, the Player sent a certificate
issued by Mr. PhD Mirco Lo Presti, the doctor who treated him, informing that “The patient still needs
physiotherapy for homogenous muscle strengthening and the final course of re-athletisation before being
able to return to competitive sporting activity. I therefore recommend continuing with specific reeducation and sport-specific exercises until at least 15 July”.
24. On 11 July 2023, the Player replied to a communication apparently sent by the Club the previous day
where it accused him of alleged contractual breaches, that he had no intention to terminate the
Contract, and that he would return to Belgrade by the next day.
25. On 13 July 2023, the Player travelled from Italy to Belgrade.
26. On 9 November 2023, the Player sent a new default notice to the Club requesting the payment of
RSD 68,000 net and EUR 177,000 net, corresponding to his monthly instalments of August and
September 2023 as per the Contract and the Annex. The Player also requested payment of
EUR 75,000 net, corresponding to the bonus for the Club’s classification for the UEFA Europa League.
The Player granted a 15-day deadline for the Club to comply with its obligations, and informed it
that failure to do so would constitute a just cause to terminate the Contract without further notice.
27. On 10 November 2023, the Player sent another default notice requesting, by error, EUR 125,000 net
on top of the above-mentioned amounts. The Player acknowledged having received this amount in
his claim.
28. On 22 November 2023, the Player sent a new default notice to the Club in which he insisted on the
deadline to proceed with the payment of the requested amount, as well as on the consequence of
failure to do so, namely, the termination of the contract with just cause under art. 14 bis of the
Regulations.
29. On 28 November 2023, the Player sent a new communication to the Club where he extended the
deadline for the payment of the outstanding amounts until 3 December 2023.
30. On 5 December 2023, the Player sent a letter to the Club by way of which he terminated the Contract
under art. 14bis of the Regulations.
31. On 21 February 2024, the Player and the Romanian club CFR Cluj concluded an employment
agreement, valid as from 21 February 2024 until 30 June 2024.
32. According to this new employment agreement, the Player is entitled to receive a monthly salary of
EUR 8,800 net “to be paid at the latest on 25 of the month following the one for which the payment is
made”.
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II. Proceedings before FIFA
33. On 13 January 2024, the Player filed the claim at hand before FIFA.
34. The Club not only replied to the claim, but also lodged a counterclaim against the Player.
35. A brief summary of the position of the Parties is detailed in continuation.
a. Position of the Player
36. According to the Player, the remuneration indicated both in the Contract and in the Annex jointly
constitute his actual monthly basic remuneration.
37. The Player argued that as from December 2021, he encountered repeated non-payments of salaries
due to him by the Club, which led to the conclusion of different settlement agreements with the
Club, as well as to two proceedings brought before the Football Tribunal by the Player in request for
overdue payables.
38. The Player asserted that during the loan period, he suffered multiple injuries that led to a knee
operation on 8 May 2023.
39. The Player argued that, at the end of June 2023, and once the loan period concluded, the Club
requested his immediate return to Belgrade. The Player requested the Club to respect his rights by
permitting him to continue and complete his rehabilitation in Italy for an additional 15 days, i.e.,
until 15 July 2023.
40. The Player asserted that after he returned to Belgrade on 13 July 2023, the Club deprived him from
the possibility to participate in any team group trainings, being forced to train individually, and that
he did not receive the proper medical attention from the Club.
41. The Player also argued that as from August 2023, the Club again failed to meet its financial
obligations as per the Contract and the Annex. According to the Player, “This was clearly a repetition
of the existing non-payment scheme of the Club towards the Player, i.e. failure to pay any of the amounts
under the Contract and/or the Annex”, and “Such practice seems to be perfect example of “egregious
circumstances” within the meaning of Article 17 para. 1 point ii. of the RSTP and clearly proves that the
Club acted in aggravated bad faith toward the player by using a pattern of not fulfilling its financial
obligations repeated time after time”.
42. The Player argued that in his default notices from 9, 10 and 22 November 2023, he requested to the
Club the payment of RSD 68,000 net and EUR 302,000 net, including EUR 125,000 net as per the
Addendum. However, he acknowledged having received EUR 125,000 net. Nevertheless, the Player
considered that the outstanding remuneration still equalled to more than three monthly salaries.
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43. The Player referred to art. 14bis of the Regulations, and alleged that he had not received his August
and September 2023 salary agreed as per the Contract and the Annex, neither the bonus of
EUR 75,000 for the Club’s qualification to the UEFA Europa League group stage in the 2022/2023
season which, according to the Player, happened before the loan to Cagliari and was not subject to
any additional conditions other than qualifying for the UEFA Europa League.
44. For the Player, after the loan period and his injury, the Club did not have the intention of continuing
the employment relationship.
45. The Player alleged that he is entitled to RSD 102,000 net and EUR 228,000 net as outstanding
remuneration, corresponding to the monthly salaries of August, September and October 2023
(RSD 34,000 net and EUR 51,000 net each), and the bonus of EUR 75,000 net.
46. The Player lastly asserted that he is also entitled to compensation in the total of RSD 272,000 net
and EUR 697,500 net, which corresponds to the residual value of the Contract and the Annex, as
well as the following bonuses:
• EUR 7,500 net for each match the Club have won the season 2023/2024 (i.e., EUR 500 net each,
for 15 matches).
• EUR 150,000 net for entering the Club to the UEFA Champions League the season 2023/2024.
47. In this regard, the Player reserved his right to pursue potential claims concerning the performance
bonuses in a separate claim, despite his alleged entitlement to the above-mentioned bonus, which
the Player considered already due.
48. The requests for relief of the Player, as amended, were the following:
1. The Claimant kindly requests the honorable FIFA DRC to adjudicate that the FIFA DRC do
have jurisdiction on the present case and that the Claim is admissible.
2. The Claimant kindly request the honorable FIFA DRC to adjudicate that the Claimant, Mr.
Filippo Falco, unilaterally terminated the Contract with the Respondent, FK Crvena Zvezda,
with just cause on 5 December 2023.
3. The Claimant kindly request the honorable FIFA DRC to adjudicate that the Respondent has
to pay the Claimant outstanding remuneration in the amount of RSD 102,000.00 net and
EUR 228,000.00 net which should constitute the following receivables:
• RSD 34,000.00 net remuneration for August 2023 due under the Contract with interest as
of the day following the due day, i.e. as of 11 September 2023;
• EUR 51,000.00 net remuneration for August 2023 due under the Annex with interest as of
the day following the due day, i.e. as of 26 September 2023;
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• RSD 34,000.00 net remuneration for September 2023 due under the Contract with interest
as of the day following the due day, i.e. as of 11 October 2023;
• EUR 51,000.00 net remuneration for September 2023 due under the Annex with interest
as of the day following the due day, i.e. as of 26 October 2023;
• RSD 34,000.00 net remuneration for October 2023 due under the Contract with interest
as of the day following the due day, i.e. as of 11 November 2023;
• EUR 51,000.00 net remuneration for October 2023 due under the Annex with interest as
of the day following the due day, i.e. as of 26 November 2023;
• EUR 75,000.00 net – performance bonus for entering the Group Stage of UEFA Europa
League in the football season 2022/2023 with interest as of the day following the due day,
i.e. as of 16 July 2023.
4. The Claimant kindly request the honorable FIFA DRC to adjudicate that the Respondent has
to pay the Claimant compensation for breach of the Contract in the amount of
RSD 272,000.00 net and EUR 697,500.00 net which consists of the following amounts:
• For the period November 2023 – June 2024 under the Contract: RSD 272,000.00 net;
• For the period November 2023 – June 2024 under the Annex: EUR 408,000.00 net;
• Second instalment of the compensation under the Settlement Agreement in the amount
of EUR 132,000.00 net;
• Compensation resulting from Article 3.2 of the Annex in the amount of EUR 7,500.00 net
for matches won by the Respondent in the 2023/2024 football season;
• Compensation resulting from Article 3.2 of the Annex in the amount of EUR 150,000.00
net for entering the group stage of the UEFA Champions League in the 2023/2024 football
season;
Plus, interest of 5% p.a. as from 5 December 2023 until the date of effective payment.
5. All the payments above shall be made on a net basis, free of any taxation, the Respondent
being responsible for the filling and payment of all taxes relating to these payments due to
the Claimant.
6. For the avoidance of doubt, in case the Claimant signs the employment agreement with any
other football team before the end of the present proceedings, the Claimant respectfully
asks the FIFA DRC to adjudicate that the Claimant is additionally entitled to the “additional
compensation” on the basis of Article 17 para. 1 point ii. of the FIFA RSTP in the amount
corresponding to six-monthly salaries (i.e. the equivalent of six “base monthly salaries”
under the Contract and the equivalent of six monthly “loyalty fee” payments under the
Annex) due to egregious action of the Club towards the Player resulting in termination of
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the contractual relationship with just cause.
7. The Claimant respectfully asks the FIFA DRC to adjudicate that the Respondent shall bear
all legal and procedural costs, if any, of the entire proceeding related to the proceeding in
this present matter.
b. Position and counterclaim of the Club
49. According to the Club, during the months of July and August 2022, the Player sent several tests of
Covid-19 without being positive nor having had to undergo isolation.
50. The Club also argued that in August 2022 it imposed a warning to the Player in accordance with its
Disciplinary Code.
51. The Club alleged that in July 2023 it called the Player several times, but he did not come back to
Serbia. According to the Club, “With this behaviour the Player is breach his employment relationship
because he is not coming in Serbia and what offence is just cause for termination his employment contract
in accordance with the article 9 paragraph 2) of the Professional playing contract of 28 January 2021”.
52. The Club argued that the information given by the Player with his letter of 4 July 2023 regarding his
injury and the recovery treatment was false.
53. The Club also alleged that when the Player came back to Serbia on 13 July 2023, the Parties
negotiated the termination of the Contract.
54. The Club further argued that on 3 September 2023, the Player left Serbia without the Club’s consent,
which allegedly constituted a breach of the Contract. According to the Club, the Player came back to
Serbia on 6 September 2023 after several calls.
55. The Club also alleged that the Player is not entitled to the bonus of EUR 75,000 related to its
classification to the UEFA Europa League in the season 2022/2023 because the Player allegedly
waived such bonus as per the Settlement Agreement.
56. The Club also asserted that the Player is neither entitled to the bonus of EUR 150,000 related to its
classification to the UEFA Champions League in the season 2023/2024 because, according to the
Contract, this amount is still not due and, consequently, it is premature.
57. According to the Club, on 7 September 2023 it sent a letter to the Player by way of which it
terminated the Contract for the following reason “during the period from 1 July 2023 until 3 September
2023, the player Filippo Falco two times did not come to Belgrade (Serbia)”.
58. According to the Club, after it allegedly terminated the Contract with just cause, the Player returned
to Serbia and requested to be allowed to train with the Club until he found a new club, to which it
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agreed. However, the Club was surprised that the Player then requested the payment of outstanding
amounts when the Contract had already been terminated.
59. The requests for relief of the Respondent, as amended, were the following:
1. The claim of the Respondent-Claimant, FK Crvena Zvezda, is admissible.
2. The claim of the Respondent-Claimant, FK Crvena Zvezda, is accepted.
3. The Claimant-Respondent, Filippo Falco, has to pay to the Respondent-Claimant, the
amount of EUR 510,000 net as compensation for the breach of contract plus 5% interest
p.a. as from 8 September 2023 until the date of effective payment.
4. The Claimant-Respondent, Filippo Falco, has to the Respondent-Claimant, the amount of
RSD 340,000 net as compensation for the breach of contract plus 5% interest p.a. as from
8 September 2023 until the date of effective payment.
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 article 24 of the Regulations on the Status and Transfer of Players, if full
payment (including all applicable interest) is not paid within 45 days of notification of this
decision, the following consequences shall apply:
1) The Claimant-Respondent shall be restricted on any football-related activity up until the
due amounts are paid. The overall maximum duration of the restriction shall be of up
to six months.
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 six months.
7. The consequences shall only be enforced at the request of the Claimant-Respondent in
accordance with art. 24 par. 7 and 8 and art. 25 of the Regulations on the Status and
Transfer of Players.
8. This decision is rendered without costs.
c.
Reply of the Player to the counterclaim
60. In his reply to the counterclaim, the Player asserted that the Club had not proven any of its
allegations.
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61. In this regard, the Player rejected having been sanctioned by the Club and receiving the termination
letter allegedly sent on 7 September 2023. The Player argued that the termination letter provided
by the Club had been fabricated.
62. The Player also denied having falsified the Covid-19 tests and asserted that no proof in this regard
had been provided.
63. According to the Player, his good faith towards the Club was notable from all his communications
and swift replies.
64. The Player alleged that it was the Club who proposed to terminate the Contract by paying him 25%
of its residual value, to which the Player opposed.
65. The Player argued that it is false that he left the Club without authorisation on 3 September 2023,
since he had been training at the Club since his return in July 2023.
III. Considerations of the Dispute Resolution Chamber
a. Competence and applicable legal framework
66. First of all, the Dispute Resolution Chamber (hereinafter also referred to as the DRC or the Chamber)
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 13 January 2024 and submitted for decision on
15 May 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.
67. Subsequently, the Chamber referred to art. 2 par. 1 and art. 24 par. 1 lit. a) 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 (February 2024), it is competent to deal with the
matter at stake, which concerns an employment-related dispute with an international dimension
between an Italian player and a Serbian club.
68. 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 (February 2024 edition), and considering that the
present claim was lodged on 13 January 2024, the May 2023 edition of said regulations (hereinafter
the Regulations) is applicable to the matter at hand as to the substance.
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b. Burden of proof
69. 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
70. Its competence and the applicable regulations having been established, the Chamber entered into
the merits of the dispute. In this respect, the Chamber started by acknowledging all the abovementioned 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 the assessment of the matter at hand.
i. Main legal discussion and considerations
71. The foregoing having been established, the Chamber moved to the substance of the matter, and
took note of the fact that the Parties disputed which of them terminated the Contract and the
consequences thereof.
72. On account of the foregoing, the Chamber pointed out that the following questions had to be
tackled:
(i)
Which party terminated the Contract?
(ii)
Was the Contract terminated with just cause?
***
(i)
Which party terminated the Contract?
73. The Chamber firstly noted that, on the one hand, the Player claimed having terminated the Contract
on 5 December 2023 after the Club had allegedly failed to pay several outstanding salaries to him.
On the other hand, the Club argued that it terminated the Contract on 7 September 2023 based on
the Player’s alleged absences.
74. The Chamber referred to the content of art. 13 par. 5 of the Procedural Rules, and recalled that the
Player denied having received the termination letter from the Club. In this regard, and after having
carefully analysed the evidence on file, the Chamber concluded that the Club did not provide enough
evidence regarding the alleged termination on 7 September 2023. Indeed, there is no evidence on
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file as to how the Club allegedly communicated to the Player its letter of 7 September 2023, which
the Chamber considered was a relatively straightforward point to prove.
75. The Chamber noted that the Club’s submitted that a Club official gave it to the Player “in his hands”
and that the latter was “on the club’s bulletin board where it was posted for eight days”. In this respect,
the Chamber considered that it could have been possible for the Club to submit evidence to support
its position. In any event, the Chamber concluded that the evidentiary shortcomings of such an
unusual way to communicate the termination of a contract had to be held against the Club.
76. The Chamber also underlined the undisputed fact that after the alleged termination letter was given
to the Player, he continued training with the Club, which is another inconsistency in the Club’s
version of events. The Chamber was not persuaded by the Club’s explanation that this was only due
to the Club’s good will.
77. A contrario, the Player, on his part, provided sufficient evidence regarding the delivery of his
termination letter on 5 December 2023.
78. On account of the foregoing, the Chamber concluded that it was the Player who terminated the
Contract on 5 December 2023 after having put the Club in default on several occasions.
(ii) Was the Contract terminated with just cause?
79. The above having been established, the Chamber then moved to the assessment as to whether the
Player had just cause to terminate the Contract based on the alleged non-payment of certain
financial obligations by the Club as per the Contract, in accordance with art. 14bis of the Regulations.
80. In this context, the Chamber acknowledged that its task was to determine, based on the evidence
presented by the Parties, whether the claimed amounts had in fact remained unpaid by the Club
and, if so, whether the formal pre-requisites of art. 14bis of the Regulations had in fact been fulfilled.
81. The Chamber then referred to the wording of art. 14bis par. 1 of the Regulations, in accordance with
which, if a club unlawfully fails to pay a player at least two monthly salaries on their due dates, the
player will be deemed to have a just cause to terminate his contract, provided that he has put the
debtor club in default in writing and has granted a deadline of at least 15 days for the debtor club
to fully comply with its financial obligation(s).
82. In this respect, the Chamber noted that the Player claimed not having received his remuneration
corresponding to the months of August and September 2023. Furthermore, the Chamber noted that
the Claimant provided written evidence of having put the Club in default on 9, 10, 22 and
28 November 2023, i.e., at least 15 days before unilaterally terminating the Contract on 5 December
2023.
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83. The Chamber also noted that in the case at hand, the Club bore the burden of proving that it indeed
complied with the financial terms of the Contract concluded between the Parties. Nonetheless, the
Club did not dispute that the respective amounts were outstanding at the time of the termination.
84. Thus, the Chamber concluded that the Player had a just cause to unilaterally terminate the Contract,
based on art. 14bis of the Regulations and, consequently, the Club shall be liable to the
consequences that follow.
85. For the sake of completeness, the Chamber noted that the Club argued that certain absences of the
Player were sufficient for the Club to terminate the Contract. Leaving aside the fact that, as was
concluded above, it has to be deemed that it was the Player who terminated the Contract, the
Chamber underlined that the Club never initiated any disciplinary proceedings against the Player. In
addition, the Player returned to Belgrade once he was requested to do so. Therefore, any potential
absences from the Player are, in these particular set of circumstances, immaterial for the
assessment of whether the Player terminated the Contract with or without just cause.
ii. Consequences
86. Having stated the above, the members of the Chamber turned its attention to the question of the
consequences of such unjustified breach of contract committed by the Club.
87. The Chamber observed that the outstanding remuneration at the time of termination, coupled with
the specific request for relief of the Player, is equivalent to four monthly salaries under the Contract
and the Annex, amounting to the following sums:
• August 2023 as per the Contract: RSD 34,000 net, payable on 10 September 2023;
• August 2023 as per the Annex: EUR 51,000 net, payable on 25 September 2023;
• September 2023 as per the Contract: RSD 34,000 net, payable on 10 October 2023;
• September 2023 as per the Annex: EUR 51,000 net, payable on 25 October 2023;
• October 2023 as per the Contract: RSD 34,000 net, payable on 10 November 2023;
• October 2023 as per the Annex: EUR 51,000 net, payable on 25 November 2023;
• November 2023 as per the Contract: RSD 34,000 net, payable on 10 December 2023;
• November 2023 as per the Annex: EUR 51,000 net, payable on 25 December 2023;
88. As a consequence, and in accordance with the general legal principle of pacta sunt servanda, the
Chamber decided that the Club is liable to pay to the Player the amounts which were outstanding
under the Contract and the Annex at the moment of termination, i.e., RSD 136,000 net and
EUR 204,000 net (i.e., RSD 34,000 net and EUR 51,000 net, respectively, times 4).
89. On top of that, the Chamber noted that the Player claimed being entitled to the following amounts
as per the bonuses agreed in Clause 3.2 of the Annex:
a) EUR 7,500 net for “winning match in Serbian league: EUR 500.00 net”
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90. The Chamber noted that the Player provided enough evidence as to the 15 matches in which the
Club have won the season 2023/2024 at the time of lodging the present claim. Additionally, the Club
did not dispute this fact.
91. Consequently, the Chamber concluded that the Player is entitled to receive the claimed amount of
EUR 7,500 net (i.e., EUR 500 net times 15).
b) EUR 75,000 net for the Club’s classification for the UEFA Europa League 2022/2023.
92. In continuation, the Chamber noted that the Player argued being entitled to this bonus. The
Chamber, however, also noted that the Club denied the Player’s entitlement to this bonus since, on
1 September 2022, the Parties concluded the Settlement Agreement by way of which they agreed
that “by paying the amount of EUR 125,000, they have no further mutual obligations as of 01/07/2023”,
which allegedly included the payment of this amount.
93. After a thorough analysis of the evidence provided, the Chamber concluded that the Player had
already received this bonus after the conclusion of the Settlement Agreement and after initiating
two proceedings before FIFA.
94. Consequently, the Chamber decided to reject the Player’s entitlement to this performance bonus.
c) EUR 150,000 net for the Club’s classification for the UEFA Champions League the season
2023/2024.
95. Lastly, the Player also claimed being entitled to this bonus after the Club entered the UEFA
Champions League the season 2023/2024. On its part, the Club, while it did not deny the Player’s
entitlement to the bonus, argued that it was premature according to Clause 8 of the Annex, in
accordance with which “Prizes for the achieved sports results or premiums set forth in this Annex shall
be paid no later than 15.07 of the current year for the previous competitive season”.
96. However, the Chamber also took note of the fact that during the season 2022/2023, in which the
classification to the UEFA Champions League 2023/2024 was accomplished, the Player was on loan
with Cagliari, and that under Clause 9 of the Annex, “The Player agrees that he does not have the right
to premiums and performance bonuses which arise during his loan to another club”.
97. Equally, the Chamber also recalled that, in accordance with Clause 5.5 of the Loan Agreement,
“Considering the suspension of their employment relationship and agreement, FK Crvena Zvezda will not
continue to pay the Player’s fixed salary as set out in article 3 of the Professional Player Contract and
article 3.1 of the Annex to the Professional player contract signed between the Player and FK Crvena
Zvezda, in line with this, during the suspension of their employment relationship, the Player shall not be
entitled to any performance related bonuses as set out in article 3.4 of the Employment Contract and
article 3.2 of the Annexe signed by the Player and FC Crvena Zvezda”.
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98. In accordance with the clear provision of the above-mentioned clauses, the Chamber concluded that
the Player was not entitled to receive the bonus of EUR 150,000 net for the Club’s entrance in the
UEFA Champions League the season 2023/2024.
99. In addition to the foregoing, taking into consideration the Claimant’s request as well as the constant
practice of the Chamber in this regard, the latter decided to award the Player interest at the rate of
5% p.a. on the outstanding amounts as from the relevant due dates of each instalment until the date
of effective payment.
100. Having stated the above, the Chamber turned to the calculation of the amount of compensation
payable to the Player by the Club in the case at stake. In doing so, the Chamber firstly recapitulated
that, in accordance with art. 17 par. 1 of the Regulations, the amount of compensation shall be
calculated, in particular and unless otherwise provided for in the contract at the basis of the dispute,
with due consideration for the law of the country concerned, the specificity of sport and further
objective criteria, including in particular, the remuneration and other benefits due to the player
under the existing contract and/or the new contract, the time remaining on the existing contract up
to a maximum of five years, and depending on whether the contractual breach falls within the
protected period.
101. In application of the relevant provision, the Chamber held that it first of all had to clarify whether
the pertinent employment contract contained a provision by means of which the Parties had
beforehand agreed upon an amount of compensation payable by the contractual parties in the
event of breach of contract.
102. In this regard, the Chamber established that no such compensation clause was included in the
employment contract at the basis of the matter at stake.
103. As a consequence, the Chamber determined that the amount of compensation payable by the
Respondent to the Claimant had to be assessed in application of the other parameters set out in
art. 17 par. 1 of the Regulations. The Chamber recalled that said provision provides for a nonexhaustive enumeration of criteria to be taken into consideration when calculating the amount of
compensation payable.
104. Bearing in mind the foregoing as well as the claim of the Player, the Chamber proceeded with the
calculation of the monies payable to the Player under the terms of the employment relationship
until its term. Consequently, the Chamber concluded that the amount of RSD 238,000 net and
EUR 357,000 net (i.e. RSD 34,000 net and EUR 51,000 net, respectively, times 7) serves as the basis
for the determination of the amount of compensation for breach of contract.
105. In continuation, the Chamber verified whether the Player had signed an employment contract with
another club during the relevant period of time, by means of which he would have been enabled to
reduce his loss of income. According to the constant practice of the Chamber as well as art. 17 par. 1
lit. ii) of the Regulations, such remuneration under a new employment contract shall be taken into
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REF. FPSD-13351
account in the calculation of the amount of compensation for breach of contract in connection with
the player’s general obligation to mitigate his damages.
106. Indeed, the Player found new employment with the Romanian club CFR Cluj. In accordance with the
pertinent employment contract, the player is entitled to EUR 8,800 net per month. Therefore, the
Chamber concluded that the player mitigated his damages in the total amount of EUR 44,000 net,
that is, EUR 8,500 net times 5.
107. Subsequently, the Chamber referred to art. 17 par. 1 lit. ii) of the Regulations, according to which a
player is entitled to an amount corresponding to three monthly salaries as additional compensation,
should the termination of the employment contract at stake be due to overdue payables. In the case
at hand, the Chamber confirmed that the contract termination took place due to said reason, i.e.
overdue payables by the club, and therefore decided that the player shall receive additional
compensation.
108. In this respect, the Chamber decided to award the amount of additional compensation of
EUR 153,000 net, i.e. EUR 51,000 times 3 as the monthly remuneration of the Player in accordance
with the Annex, plus RSD 102.000 net, i.e. RSD 34.000 times 3 as the monthly remuneration of the
Player in accordance with the Contract.
109. The Chamber reminded the Parties that, as per the last sentence of art. 17 par. 1 lit. ii) of the
Regulations, the overall compensation may never exceed the rest value of the prematurely
terminated contract.
110. Consequently, on account of all the above-mentioned considerations and the specificities of the
case at hand, the Chamber decided that the club must pay the amount of RSD 238,000 net and EUR
357,000 net to the player (i.e. (i) RSD 238,800 net and (ii) EUR 357,000 net minus EUR 44,000 net plus
EUR 153,000 net, plus RSD 102.000 net, limited to a maximum of EUR 357,000 net), which was to be
considered a reasonable and justified amount of compensation for breach of contract in the present
matter.
111. Lastly, taking into consideration the player’s request as well as the constant practice of the Chamber
in this regard, the latter decided to award the player interest on said compensation at the rate of
5% p.a. as of 5 December 2023 until the date of effective payment.
iii. Compliance with monetary decisions
112. 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.
113. In this regard, the Chamber 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
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REF. FPSD-13351
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.
114. Therefore, bearing in mind the above, the Chamber decided that the Club must pay the full amount
due (including all applicable interest) to the player within 45 days of notification of the decision,
failing which, at the request of the creditor, 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 club in accordance with art. 24 par. 2,4 and 7 of the
Regulations.
115. The Club shall make full payment (including all applicable interest) to the bank account provided by
the Player in the Bank Account Registration Form, which is attached to the present decision.
116. The Chamber 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
117. 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.
118. Furthermore, 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.
119. Lastly, the Chamber concluded its deliberations by rejecting any other requests for relief made by
any of the Parties.
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REF. FPSD-13351
IV. Decision of the Dispute Resolution Chamber
1.
The claim of the Claimant/Counter-Respondent, Filippo Falco, is partially accepted.
2.
The Respondent/Counter-Claimant must pay to the Claimant/Counter-Respondent the following
amount(s):
RSD 136,000 net and EUR 211,500 net as outstanding remuneration plus 5% interest p.a. as
follows:
- 5% interest p.a. over the amount of RSD 34,000 net plus 5% interest p.a. as from 11 September
2023 until the date of effective payment;
- 5% interest p.a. over the amount of EUR 51,000 net plus 5% interest p.a. as from 26 September
2023 until the date of effective payment;
- 5% interest p.a. over the amount of RSD 34,000 net plus 5% interest p.a. as from 11 October 2023
until the date of effective payment;
- 5% interest p.a. over the amount of EUR 51,000 net plus 5% interest p.a. as from 26 October 2023
until the date of effective payment;
- 5% interest p.a. over the amount of RSD 34,000 net plus 5% interest p.a. as from 11 November
2023 until the date of effective payment;
- 5% interest p.a. over the amount of EUR 51,000 net plus 5% interest p.a. as from 26 November
2023 until the date of effective payment;
- 5% interest p.a. over the amount of RSD 34,000 net plus 5% interest p.a. as from 5 December 2023
until the date of effective payment; and
- 5% interest p.a. over the amount of EUR 58,500 net plus 5% interest p.a. as from 5 December 2023
until the date of effective payment.
RSD 238,000 net and EUR 357,000 net as compensation for breach of contract without just
cause plus 5% interest p.a. as from 5 December 2023 until the date of effective payment.
3.
Any further claims of the Claimant/Counter-Respondent are rejected.
4.
The claim of the Respondent/Counter-Claimant, Crvena Zvezda, is rejected.
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/Counter-Claimant 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 the full payment (including all applicable interest) is still not made by the end of three entire
and consecutive registration periods.
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REF. FPSD-13351
7.
The consequences shall only be enforced at the request of the Claimant/Counter-Respondent in
accordance with art. 24 par. 7 and 8 and art. 25 of the Regulations on the Status and Transfer of
Players.
8.
This decision is rendered without costs.
For the Football Tribunal:
Emilio García Silvero
Chief Legal & Compliance Officer
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REF. FPSD-13351
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).
CONTACT INFORMATION
Fédération Internationale de Football Association
FIFA-Strasse 20 P.O. Box 8044 Zurich Switzerland
www.fifa.com | legal.fifa.com | [email protected] | T: +41 (0)43 222 7777
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