Labour Disputes
Texto da decisão
REF. FPSD-16984
Decision of the
Dispute Resolution Chamber
passed on 29 January 2025
regarding an employment-related dispute concerning the
player Fredrik Midtsjo
BY:
Calum BEATTIE (Scotland)
CLAIMANT:
Fredrik Midtsjo, Norway
Represented by Anıl Dinçer
RESPONDENT:
Siltas Yapi Pendikspor Futbol A.Ş., Türkiye
Represented by Ercan Sevdimbaş
pg. 2
REF. FPSD-16984
I. Facts of the case
1.
On 7 September 2023, the Norwegian player Fredrik Midtsjo (hereinafter, the Claimant or
the Player) and the Turkish club Siltas Yapi Pendikspor Futbol AŞ (hereinafter, the
Respondent or the Club) concluded an employment contract (hereinafter, the Contract) valid
as from 7 September 2023 until 30 June 2025.
2.
On 5 April 2024, the Player submitted an annual income tax declaration for the 2023 fiscal
year. In accordance with the tax declaration, the Player was required to pay the total
amount of TRY 7,398,904.88 as income tax, of which TRY 1,743,647.47 corresponded to the
period during which he was under an employment contract with the Respondent, and TRY
5,655,257.41 corresponded to the period during which he was employed by the Turkish
club Galatasaray A.Ş.
3.
On 7 May 2024, the Player sent his income tax declaration to the Club and requested the
Club to proceed with its payment on his behalf to the Turkish tax authorities.
4.
On 14 May 2024, the Player made two payments of TRY 3,622,952,44 and TRY 3,788,296.10
to the Turkish tax authorities, totalling TRY 7,411,248.54.
5.
On 1 July 2024, the Player and the Club (hereinafter, jointly referred to as the Parties)
concluded the so-called “Mutual termination agreement” (hereinafter, the Termination
Agreement) in accordance with which:
“1.1. The parties terminate by mutual agreement all contractual relationship undersigned
between them, including the early termination of the TFF Professional Player Contract with the
expiry date 30.06.2025.
As of the signing date of this termination, the parties do not have any contractual relationship
and the Player does not have any claim for the remaining part of the Player Contract and all
other agreements.
1.3 The Termination Agreement shall be ruled by the Regulations on the Status and Transfer of
Players of FIFA, and any dispute arising from the interpretation, unfulfillment and execution of
this Termination and Settlement Agreement shall be decided by the Dispute Resolution Chamber
of Football Tribunal of FIFA with the right to appeal to the Court of Arbitration for Sport based
at Lausanne, Switzerland”.
6.
Also on 1 July 2024, the Parties concluded an additional agreement (hereinafter, the
Agreement) pursuant to which:
“1.1. Subject: [the Club] and the Player has signed mutual termination agreement and
Permanent Transfer Agreement with Eyupspor on the same date with this agreement. However,
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REF. FPSD-16984
all parties would like to clarify and determine the current financial debt towards the player
(unpaid and overdue receivables and income taxes) which will be paid by [the Club] as agreed
and accepted below.
1.2. The Player’s overdue and unpaid receivables is in a total amount of 725.000 EUR. However,
373.000 EUR of the above-mentioned 725.000 EUR has been paid to the Player by Eyupspor on
behalf of [the Club] on the date of signature of this agreement. The remaining 352.000 EUR is
added to the amounts agreed in the contract and protocol to be concluded between Eyupspor
and the Player will be paid on 12.07.2024. Therefore, [the Club] is currently not responsible for
the payment of 725.000 EUR.
1.3. Tax Liability for the period that the Player has a contract with [the Club] until 01.07.2024
in 2023 and 2024: Regarding the Protocol dated 07.09.2023, the TFF Professional Player
Contract dated 07.09.2023 commencing on 07.09.2023 and ending on 30.06.2025 and all other
agreements and protocols between the Player and [the Club], [the Club] agrees, declares and
undertakes to remain to be responsible for all taxes arising in Türkiye, including the Player’s
income tax arising from the Protocol and the Contract, for the entire period during which the
Player contractually belongs to [the Club] (including the years 2023 and 2024 separately). For
the sake of the clarity, [the Club] will pay all tax amounts (including the Player’s income tax
arising from the Protocol and the Contract) to the Player in 30 days after the Player makes tax
declaration and submit his declaration documents to [the Club]. [The Club] will be also
responsible for all other amounts in case of non-and/or late payment of [the Club] regarding
the Player’s tax liability. [The Club] is also responsible for all taxes regarding all payments made
to the Player by hand, as cash and/or any other way.
Briefly, for the period that the Player has a contractual relationship with [the Club], [the Club]
explicitly agrees and accepts to be obliged to pay the Player’s income tax for 2023 (which has
already been declared and all documents have already been submitted to [the Club]) and 2024
(which will be declared in the following year). [The Club] also agrees and accepts to pay all other
amounts including but not limited to interest, penalty amount: due to late and/or non-payment
of [the Club].
1.4. In this context, the Player accepts and undertakes to release [the Club] irrevocably for all
the obligations (except above and hereby explained) set in the Contract between the Player and
[the Club], also the other agreements, arrangements and understandings made by and between
the Player and [the Club] regarding the same period and for any other claims / compensation
related to employment contract(s).
1.5. The Termination Agreement shall by ruled by the Regulations on the Status and Transfer of
Players of FIFA, and any dispute arising from the interpretation, unfulfillment and execution of
this Agreement shall be decided by the Dispute Resolution Chamber of Football Tribunal of FIFA
with the right to appeal to the Court of Arbitration for Sport based at Lausanne, Switzerland”.
pg. 4
REF. FPSD-16984
7.
On 23 August 2024, the Player put the Club in default and provided it a deadline until 30
August 2024 to reimburse the income tax paid to the Turkish tax authorities.
II. Proceedings before FIFA
8.
On 7 November 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.
The Player argued that the Club failed to comply with its contractual obligations with regard
to the payment of taxes to the Turkish tax authorities, resulting in him having to pay such
tax, interest and penalties.
10. In this regard, the Player sustained that “The total late penalty incurred on the Player’s tax
payment was 164,876.46 Turkish Liras. To allocate this penalty proportionately according to the
income earned from each club, the tax obligations related to Galatasaray Sportif AŞ and [the
Club] were applied as a basis. Galatasaray’s portion of the Player’s income tax was 5,655,257.41
Turkish Liras, representing 76,45% of the total tax, while [the Club]’s portion was 1,743,647.47
Turkish Liras, equating to 23.55% of the total tax. Applying these percentages, the penalty
amount attributable to Galatasaray is 126,007.44 Turkish Liras, while the portion corresponding
to [the Club] is 38,869.02 Turkish Liras. Consequently, [the Club] is liable for 38,869.02 Turkish
Liras for the late payment penalty”.
11. Based on the above, the Player claimed to be entitled to the reimbursement of the total
sum of TRY 1,782,516.49, which included the principal amount paid as income tax (i.e., TRY
1,743,647.47) and the penalty for late payment calculated on a pro rata basis according to
the income tax arising from the employment relationship with the Club and the one arising
from his previous employment relationship with Galatasaray A.Ş (i.e., TRY 38,869.02).
12. Furthermore, the Player also claimed being entitled to default interest at the rate of 12%
per annum before June 2024 and 24% per annum as from June 2024, in accordance with
Turkish law.
13. The Player requested the following relief:
“In light of the foregoing, the Claimant respectfully requests the FIFA Dispute Resolution Chamber
to:
• Order the Respondent to reimburse the Player the full amount of 1,743,647.47 Turkish Liras
paid by the Player for income tax.
pg. 5
REF. FPSD-16984
• Order the Respondent to pay interest (24% annually in accordance with Turkish law, if not
accepted, 5% according to Swiss Law) on the overdue amounts from the date the Player
made the tax payment until full reimbursement is made.
• Order the Respondent to pay any penalties (at least late payment penalty of 38,869.02
Turkish Liras) and additional costs that the Player incurred due to the Respondent’s failure
to make timely payment.
• Condemn the Respondent to bear the legal costs incurred by the Player in bringing this
claim”.
b. Position of the Respondent
14. In its reply, the Club submitted that, pursuant to the Termination Agreement, the Player
declared not having any claims against the Club arising from their employment
relationship. Therefore, the Club rejected the claim of the Player and denied his entitlement
to reimbursement.
15. Furthermore, the Club argued that the Player failed to prove “(…) how much of the income
tax accrued corresponds to the tax arising from the income from the Client Club, taking into
account that the Player received income from third club / institution other than the Client Club”.
16. The Club requested the following relief:
“Firstly, we request that this case be dismissed due to the Player’s declaration that he will not
make any claim from the Club pursuant to the Mutual Termination Agreement signed between
the parties.
In case our first request is not accepted, we request that this case be dismissed in consideration
of the precedent decisions due to the Claimant’s failure to fulfil the burden of proof”.
III. Considerations of the Dispute Resolution Chamber
a. Competence and applicable legal framework
17. First of all, the Single Judge of the Dispute Resolution Chamber (hereinafter, the Single
Judge) analysed whether he was competent to deal with the case at hand. In this respect,
the Single Judge took note that the present matter was presented to FIFA on 7 November
2024 and submitted for decision on 29 January 2025. Taking into account the wording of
art. 31 of the January 2025 edition of the Procedural Rules Governing the Football Tribunal
pg. 6
REF. FPSD-16984
(hereinafter, the Procedural Rules), the aforementioned edition of the Procedural Rules is
applicable to the matter at hand.
18. Furthermore, the Single Judge 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 January
2025 edition of the Regulations on the Status and Transfer of Players (hereinafter, the
Regulations), he is competent to deal with the matter at stake, which concerns an
employment-related dispute with an international dimension between a Norwegian player
and a Turkish club.
19. Subsequently, the Single Judge analysed which regulations should be applicable as to the
substance of the matter. In this respect, he confirmed that, in accordance with art. 29 of
the Regulations (January 2025 edition), the said edition of the Regulations is applicable to
the matter at hand as to the substance.
b. Burden of proof
20. The Single Judge 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 Single Judge
stressed the wording of art. 13 par. 4 of the Procedural Rules, pursuant to which he 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
21. Having established the competence and the applicable regulations, the Single Judge
entered into the merits of the dispute. In this respect, he started by acknowledging all the
above-mentioned facts as well as the arguments and the documentation on file. However,
the Single Judge emphasised that in the following considerations he will refer only to the
facts, arguments and documentary evidence, which he considered pertinent for assessing
the matter at hand.
i. Main legal discussion and considerations
22. The Single Judge then moved to the substance of the matter, and took note of the fact that
it concerned a claim by a player against a club for reimbursement of taxes.
23. In this respect, the Single Judge noted, according to the Player, the Club failed to fulfil its
contractual obligations with regard to the payment of taxes. The Player argued that, as a
result, he had to pay his income tax and a penalty for late payment totalling TRY
1,782,516.49. Accordingly, the Player claimed to be entitled to the reimbursement of the
aforementioned amount.
pg. 7
REF. FPSD-16984
24. The Single Judge also noted that, for its part, the Club argued that the Player was not
entitled to the reimbursement claimed on the basis of the Termination Agreement,
pursuant to which he had declared and acknowledged not having any claims against the
Club. Alternatively, the Club also sustained that the Player failed to prove how much of the
income tax declared for the 2023 fiscal year was attributable to the Club, taking into
account the fact that the Player was employed by another club during that year.
25. In this context, the Single Judge acknowledged that his task was to determine, based on
the arguments and evidence on file, whether the Player is indeed entitled to a
reimbursement of his personal income tax and, in such a case, to what amount.
26. As a starting point, the Single Judge noted that, on 1 July 2024, the Parties concluded two
different contracts: (i) the Termination Agreement and (ii) the Agreement.
27. The Single Judge noted that, in accordance with the Termination Agreement, the Parties
terminated the Contract by mutual agreement. In addition, the Single Judge also noted that
the Termination Agreement contained the following provision:
“As of the signing date of this termination, the parties do not have any contractual relationship
and the Player does not have any claim for the remaining part of the Player Contract and all
other agreements”.
28. Notwithstanding the foregoing, the Single Judge then turned his attention to the
Agreement, also concluded on 1 July 2024, and noted that its Clause 1 established the
following:
“1.1. Subject: [the Club] and the Player has signed mutual termination agreement and
Permanent Transfer Agreement with Eyupspor on the same date with this agreement. However,
all parties would like to clarify and determine the current financial debt towards the player
(unpaid and overdue receivables and income taxes) which will be paid by [the Club] as agreed
and accepted below.
(…)
1.3. Tax Liability for the period that the Player has a contract with [the Club] until 01.07.2024
in 2023 and 2024: Regarding the Protocol dated 07.09.2023, the TFF Professional Player
Contract dated 07.09.2023 commencing on 07.09.2023 and ending on 30.06.2025 and all other
agreements and protocols between the Player and [the Club], [the Club] agrees, declares and
undertakes to remain to be responsible for all taxes arising in Türkiye, including the Player’s
income tax arising from the Protocol and the Contract, for the entire period during which the
Player contractually belongs to [the Club] (including the years 2023 and 2024 separately). For
the sake of the clarity, [the Club] will pay all tax amounts (including the Player’s income tax
arising from the Protocol and the Contract) to the Player in 30 days after the Player makes tax
pg. 8
REF. FPSD-16984
declaration and submit his declaration documents to [the Club]. [The Club] will be also
responsible for all other amounts in case of non-and/or late payment of [the Club] regarding
the Player’s tax liability. [The Club] is also responsible for all taxes regarding all payments made
to the Player by hand, as cash and/or any other way.
Briefly, for the period that the Player has a contractual relationship with [the Club], [the Club]
explicitly agrees and accepts to be obliged to pay the Player’s income tax for 2023 (which has
already been declared and all documents have already been submitted to [the Club]) and 2024
(which will be declared in the following year). [The Club] also agrees and accepts to pay all other
amounts including but not limited to interest, penalty amount: due to late and/or non-payment
of [the Club]”.
29. After having carefully analysed the foregoing provision, the Single Judge first noted that the
Agreement expressly refers to the fact that the Parties had already signed the Termination
Agreement. The Single Judge therefore found that the first conclusion to be drawn from
the above is that the Agreement was signed subsequent to the Termination Agreement
and, therefore, that the Agreement superseded the Termination Agreement.
30. In addition, the Single Judge noted that, in accordance with Clause 1.3 of the Agreement,
the Club “agrees, declares and undertakes to remain to be responsible for all taxes arising in
Türkiye, including the Player’s income tax arising from the Protocol and the Contract, for the
entire period during which the Player contractually belongs to [the Club] (including the years
2023 and 2024 separately)”.
31. At the same time, the Single Judge noted that neither the signing of the Agreement nor the
financial obligations assumed by the Club were disputed by it.
32. In light of the above, and taking into account the clear wording of the aforementioned
provisions, the Single Judge decided to reject the Club's arguments and ruled that the
Player is entitled to the reimbursement of the taxes paid by him in accordance with the
Agreement.
33. The above having been established, the Single Judge proceeded to analyse the specific
amount that the Club must pay to the Player as reimbursement.
34. In this regard, and again contrary to the Club's assertions, the Single Judge found that the
Player had indeed proved the exact amount of tax that the Club should have paid by
providing the tax invoice for the 2023 fiscal year, which clearly shows that the amount of
TRY 1,743,647. 47 corresponds to the period during which the Player was employed by the
Club during that year.
35. In addition, the Single Judge did not overlook the fact that, in accordance with the Clause
1.3 of Agreement, the Club declared that it had received the relevant information and
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REF. FPSD-16984
documentation from the Player and undertook to pay the taxes within thirty days of receipt
of such information and documents.
36. Finally, with regard to the amount of TRY 38,869.02 paid by the Player as a late payment
penalty, the Single Judge also verified that, in accordance with clause 1.3 of the Agreement,
the Club was also responsible for the consequences arising in the event of late payment or
non-payment of the taxes that it undertook to pay, expressly including default interest
and/or penalties.
37. On the basis of the foregoing, and taking into account that the Club has not disputed the
calculation made by the Player with regard to said penalty, the Single Judge decided that
the Player is also entitled to receive the aforementioned amount as reimbursement.
38. In addition, taking into consideration the Player’s request as well as the constant practice
of the Dispute Resolution Chamber in this regard, the Single Judge decided to award the
Player interest at the rate of 5% per annum on the reimbursement as from 8 June 2024 until
the date of effective payment, taking into account (i) that, pursuant to Clause 1.3 of the
Agreement, payment was to be be made within 30 days of the Player’s providing the
relevant documentation to the Club and (ii) that the Player sent his income tax declaration
to the Club on 7 May 2024.
ii. Compliance with monetary decisions
39. Finally, taking into account the applicable Regulations, the Single Judge 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.
40. In this regard, the Single Judge 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.
41. Therefore, bearing in mind the above, the Single Judge 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.
pg. 10
REF. FPSD-16984
42. 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.
43. The Single 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. 24 par.
8 of the Regulations.
d. Costs
44. The Single Judge 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 Single Judge decided that no procedural costs were to be
imposed on the Parties.
45. Likewise, and for the sake of completeness, the Single Judge recalled the contents of art.
25 par. 8 of the Procedural Rules and decided that no procedural compensation shall be
awarded in these proceedings.
46. Lastly, the Single Judge concluded its deliberations by rejecting any other requests for relief
made by any of the Parties.
pg. 11
REF. FPSD-16984
IV. Decision of the Dispute Resolution Chamber
1.
The claim of the Claimant, Fredrik Midtsjo, is partially accepted.
2.
The Respondent, Siltas Yapi Pendikspor Futbol A.Ş., must pay to the Claimant the following
amount(s):
TRY 1,782,516.49 as reimbursement plus 5% interest per annum as from 8 June 2024 until
the date of effective payment.
3.
Any further claims of the Claimant are rejected.
4.
Full payment (including all applicable interest) shall be made to the bank account indicated
in the enclosed Bank Account Registration Form.
5.
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.
6.
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.
7.
This decision is rendered without costs.
For the Football Tribunal:
Emilio García Silvero
Chief Legal & Compliance Officer
pg. 12
REF. FPSD-16984
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. 13