DRC Overdue Payables
Texto da decisão
REF FPSD-7604
Decision of the
Dispute Resolution Chamber
passed on 11 January 2023
regarding an employment-related dispute concerning the player Leonardo
Peixoto Principe
BY:
Gonzalo DE MEDINILLA (Spain)
CLAIMANT:
Leonardo Peixoto Principe, Portugal
Represented by Dev Kumar Parmar
RESPONDENT:
FC Krumovgrad, Bulgaria
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I. Facts of the case
1.
On an unspecified date in 2022, the Portuguese player, Leonardo Peixoto Principe
(hereinafter: the Claimant or the Player), and the Bulgarian club, FC Krumovgrad
(hereinafter: the Respondent or the Club) concluded an employment contract (hereinafter:
the contract) valid as from the date of signature until 30 June 2024.
2.
In accordance with the contract the Respondent undertook to pay the Claimant:
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3.
a monthly net salary of EUR 2,000 from 1 January 2022 to 30 June 2022;
a monthly net salary of EUR 3,000 from 1 July 2022 to 30 June 2023; and
if the Club started the 2023/2024 in First professional Football League of the
Championship, the salary would be increased to EUR 4,000 net per month.
In accordance with clause X of the contract, inter alia:
“X.2.1. The Club provides [the Player] with a furnished apartment for the duration of the
contract. All expenses for the use of the apartment, such as electricity, water, telephone,
heating, etc. are entirely at the expense of [the Player].
X.2.2. The Club provides 2 air tickets (Bulgaria-Brazil-Bulgaria) for [the Player].
X.3. Personal Bonuses:
X.3.1. First Bonus when the Player signs the contract in one-time payment of EUR 2,000 net.
X3.2. Second bonus is from 01.07.2022 -one-time payment in the amount of 3,000 net”.
4.
By correspondence dated 12 September 2022, the Claimant put the Respondent in
default and requested payment of the salaries of January, February, March, June, July, and
August 2022 (EUR 14,000); the payment of the bonuses dated 1 January 2022 and 1 July
2022 (EUR 5,000); and the reimbursement of the flight ticket (EUR 387). The Claimant
granted a 10-day deadline to the Respondent to comply with its contractual obligations.
5.
As per information contained in the Transfer Matching System (TMS), on 2 August 2022,
the Club changed its name from “Levski 2005” to “FC Krumovgrad”.
6.
On 1 September 2022, the Claimant concluded an employment contract with Slovenian
Club ND Promorje.
II. Proceedings before FIFA
7.
On 26 September 2022, the Claimant filed the claim at hand before FIFA. A brief summary
of the position of the parties is detailed in continuation.
a. Position of the Claimant
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8.
According to the Claimant, the Respondent failed to comply with its financial obligations
under the Contract by not paying six monthly salaries for the period between January
2022 and August 2022.
9.
According to the Claimant, on an unspecified date, “the Club communicated to him (orally)
that the management and the staff did not count on his services in the upcoming season and
that the Player was free to search for a new club”.
10. The Claimant further indicated that on 1 September 2022 the contract was terminated by
mutual agreement. At that date the Respondent still owed the Player the salaries between
January and June 2022, the bonus under clause X.3 and flight ticket.
11. The Claimant requested the following relief:
1) The Claim of the Claimant, Mr. Leonardo Peixoto Principe, is accepted.
2) The Respondent, FC Krumovgrad, Bulgaria, is obliged to pay the following amounts:
- EUR 14.000 (Fourteen thousand Euro) net of taxes and social security payments in a
concept of outstanding salaries for January, February, March, June, July, and August
2022.
- EUR 5.000 (Five thousand Euro) net of taxes and social security payments in a concept
of bonuses provided by article X.3 of the employment contract (sign-on fee payable on
01.01.2022 and additional bonus payable on 01.07.2022);
- EUR 387 (Three hundred eighty-seven Euro) as compensation for the airplane tickets.
3) The Respondent, FC Krumovgrad, is obliged to provide the certificates of tax retentions
applied to the payments of the salary arrears of the Player and the certification of social tax
contributions applied in Bulgaria.
4) The interest at 5% p.a. is applied on any outstanding payment from the date of the due
payment until the effective date of payment on any amount, being salaries, bonuses, or
compensation for breach of the employment contract, as the penalty for the delay of
payment and per the long-standing jurisprudence of FIFA DRC:
- 5% p.a. applies on EUR 2.000 (January salary) from 01.02.2022 until the effective date of
payment;
- 5% p.a. applies on EUR 2.000 (February salary) from 01.03.2022 until the effective date
of payment;
- 5% p.a. applies on EUR 2.000 (March salary) from 01.04.2022 until the effective date of
payment;
- 5% p.a. applies on EUR 2.000 (June salary) from 01.07.2022 until the effective date of
payment;
- 5% p.a. applies on EUR 3.000 (July salary) from 01.08.2022 until the effective date of
payment;
- 5% p.a. applies on EUR 3.000 (August salary) from 01.09.2022 until the effective date of
payment;
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5% p.a. applies on EUR 2.000 (sign-on bonus) from 02.01.2022 until the effective date of
payment;
- 5% p.a. applies on EUR 3.000 (July 2022 bonus) from 02.07.2022 until the effective date
of payment;
- 5% p.a. applies on EUR 387 (airplane tickets) from 01.09.2022 until the effective date of
payment.
5) In case of non-payment within the stipulated terms as per FIFA decision, sanctions are
imposed on Respondent as per art. 24BIS of FIFA RSTP”.
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b. Position of the Respondent
12. In spite of having invited to do so, the Respondent did not submit its position to the claim.
III. Considerations of the Dispute Resolution Chamber
a. Competence and applicable legal framework
13. First of all, the Single Judge of the Dispute Resolution Chamber (hereinafter also referred
to as Single Judge) analysed whether he was competent to deal with the case at hand. In
this respect, he took note that the present matter was presented to FIFA on 26 September
2022 and submitted for decision on 11 January 2023. Taking into account the wording of
art. 34 of the October 2022 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.
14. Subsequently, 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 lit. b) of the
Regulations on the Status and Transfer of Players (October 2022 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 Portuguese
player and a Bulgarian club.
15. Finally, 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. 26 par.
1 and 2 of the Regulations on the Status and Transfer of Players (October 2022 edition),
and considering that the present claim was lodged on 26 September 2022, the July 2022
edition of said regulations (hereinafter: the Regulations) is applicable to the matter at hand
as to the substance.
b. Burden of proof
16. 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
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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 TMS (Transfer Matching System).
c. Merits of the dispute
17. The competence and the applicable regulations having been established, the Single Judge
entered into the merits of the dispute. In this respect, the Single Judge 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 the assessment of the matter at hand.
i. Main legal discussion and considerations
18. The foregoing having been established, the Single Judge moved to the substance of the
matter, and took note that the main dispute of the case is the lawfulness of the nonpayment of certain financial obligations under the Contract, corresponding to the salaries
of January, February, March, June, July, and August 2022; the payment of the bonuses
dated 1 January 2022 and 1 July 2022; and the reimbursement of the flight ticket.
19. In this sense, the Single Judge remarked that no compensation for breach of contract has
been requested by the Claimant, who in fact explained that the contract was terminated
by mutual agreement, even if no further information has been provided on that sense. As
such, and because any such request for payment of compensation does not make part of
the Player’s claim, the Single Judge confirmed he shall not make any assessment on it.
20. In continuation, the Single Judge noted that neither party contested the non-payment of
the amounts claimed by the Claimant. Therefore, he acknowledged that his task was to
determine, based on the arguments presented by the parties, whether the Respondent
had a valid justification for not having complied with its financial obligations. In doing so,
the Single Judge underlined that the Respondent failed to present its reply to the claim of
the Claimant, and therefore his decision would be made on the basis of the
documentation on file, that is, the argumentation and evidence filed by the Claimant, in
line with article 14 par. 1 of the Procedural Rules.
21. The Single Judge also noted that in the case at hand the Respondent bore the burden of
proving that it indeed complied with the financial terms of the contract concluded
between the parties. Nonetheless, as there is no reply on file, the Respondent failed to
submit any evidence corroborating the payment of the amounts sought by the Claimant,
thereby failing to meet the burden of proving that the payments under the Contract could
be challenged.
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22. With regards to the reimbursement of the flight tickets, the Single Judge observed that
under the contract the Player was entitled to a flight ticket and that the Player provided
with documentation of the flight ticket reservation from Sofia, Bulgaria to Sao Paulo,
Brazil, the price of which amounted to BGN 755.87.
23. In view of the foregoing, and bearing in mind the basic legal principle of pacta sunt
servanda, which in essence means that agreements must be respected by the parties in
good faith, the Respondent is held liable to pay the Claimant the outstanding amounts
deriving from the Contract concluded between the parties, namely EUR 19,000 and BGN
755.87.
24. In addition, taking into account the Claimant’s request as well as the constant practice of
the Football Tribunal in this regard, the latter decided to award the Claimant interest at
the rate of 5% p.a. on the outstanding amounts as from the following dates:
- On the amount of EUR 2,000 net, 5% p.a. as from 2 January 2022 until the date of
effective payment;
- On the amount of EUR 2,000 net, 5% p.a. as from 1 February 2022 until the date of
effective payment;
- On the amount of EUR 2,000 net, 5% p.a. as from 1 March 2022 until the date of
effective payment;
- On the amount of EUR 2,000 net, 5% p.a. as from 1 April 2022 until the date of effective
payment;
- On the amount of EUR 2,000 net, 5% p.a. as from 1 July 2022 until the date of effective
payment;
- On the amount of EUR 3,000 net, 5% p.a. as from 2 July 2022 until the date of effective
payment;
- On the amount of EUR 3,000 net, 5% p.a. as from 1 August 2022 until the date of
effective payment;
- On the amount of EUR 3,000 net, 5% p.a. as from 1 September 2022 until the date of
effective payment;
- On the amount of BGN 755.87 net, 5% p.a. as from 1 September 2022 until the date
of effective payment.
ii. Art. 12bis of the Regulations
25. In continuation, the Single Judge 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.
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26. To this end, the Single Judge confirmed that the player put the club in default of payment
of the amounts sought, which had fallen due form more than 30 days, and granted the
club with 10 days to cure such breach of contract.
27. The Single Judge 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 and bearing
in mind that the club this is the first offense by the club within the last two years, the
Single Judge decided to impose a warning.
28. In this connection, the Single Judge wished to highlight that a repeated offence will be
considered as an aggravating circumstance and lead to more severe penalty in
accordance with art. 12bis par. 6 of the Regulations.
iii. Compliance with monetary decisions
29. 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.
30. 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.
31. 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.
32. 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.
33. 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
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34. 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.
35. 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.
36. Lastly, the Single Judge concluded its deliberations by rejecting any other requests for
relief made by any of the parties.
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IV. Decision of the Dispute Resolution Chamber
1.
The claim of the Claimant, Leonardo Peixoto Principe, is partially accepted.
2.
The Respondent, FC Krumovgrad, has to pay to the Claimant, the following amounts:
- EUR 2,000 net as outstanding remuneration plus 5% interest p.a. as from 2 January
2022 until the date of effective payment;
- EUR 2,000 net as outstanding remuneration plus 5% interest p.a. as from 1 February
2022 until the date of effective payment;
- EUR 2,000 net as outstanding remuneration plus 5% interest p.a. as from 1 March
2022 until the date of effective payment;
- EUR 2,000 net as outstanding remuneration plus 5% interest p.a. as from 1 April 2022
until the date of effective payment;
- EUR 2,000 net as outstanding remuneration plus 5% interest p.a. as from 1 July 2022
until the date of effective payment;
- EUR 3,000 net as outstanding remuneration plus 5% interest p.a. as from 2 July 2022
until the date of effective payment;
- EUR 3,000 net as outstanding remuneration plus 5% interest p.a. as from 1 August
2022 until the date of effective payment;
- EUR 3,000 net as outstanding remuneration plus 5% interest p.a. as from 1 September
2022 until the date of effective payment; and
- BGN 755,87 as outstanding amount plus 5% interest p.a. as from 1 September 2022
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:
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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.
8.
This decision is rendered without costs.
For the Football Tribunal:
Emilio García Silvero
Chief Legal & Compliance Officer
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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).
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