Labour Disputes
Texto da decisão
REF FPSD-14134
Decision of the
Dispute Resolution Chamber
passed on 30 May 2024
regarding an employment-related dispute concerning the player Erik Sabo
BY:
Lívia SILVA KÄGI (Brazil), Deputy Chairperson
Stella MARIS JUNCOS (Argentina), member
Iñigo RIESTRA (Mexico), member
CLAIMANT:
Erik Sabo, Slovakia
Represented by Boaz Sity
RESPONDENT:
Anorthosis Famagusta, Cyprus
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I. Facts of the case
1.
On 7 July 2022, the Slovakian player, Erik Sabo (hereinafter: the Claimant or Player), and the
Cypriot club, Anorthosis Famagusta (hereinafter: the Respondent or Club) signed an
employment contract (hereinafter: the Contract) valid as from 7 July 2022 until 31 May 2024.
2.
In accordance with the employment contract, the Respondent undertook to pay to the
Claimant inter alia a monthly salary of EUR 10,000 net for the period between 31 August
2022 and 31 May 2023 and from 31 August 2023 until 31 May 2024, i.e., no remuneration
was payable for the months of June and July 2023.
3.
On 28 July 2023, the parties concluded a supplementary agreement to the Contract
(hereinafter: the Supplementary Agreement). In accordance with clauses 1 and 2 of the
Supplementary Agreement, the Respondent undertook to pay the Claimant the following
remuneration:
-
4.
In addition, under clause 3 of the Supplementary Agreement, the Respondent undertook
to pay the Claimant – inter alia – the following amounts and provide the Claimant with the
following benefits:
-
-
5.
For the 2022/2023 season: “the total amount of EUR 200,000 net” in 10 equal instalments
of EUR 20,000 net each, payable between 31 August 2022 and 31 May 2023;
For the 2023/2024 season: “the total amount of EUR 200,000 net” in 10 equal instalments
of EUR 20,000 net each, payable between 31 August 2023 and 31 May 2024.
EUR 1,000 net monthly (along with the Player’s salary, i.e., 10 instalments per season)
for housing and transportation expenses;
EUR 10,000 net per season, provided that the Player was “in the starting line-up of at
least 70% of the Official Championship and Cup Games,” payable “one month after the end
of the season.”
EUR 500 per goal or assist in official games, payable at the end of the relevant month;
2 flight tickets (return tickets) per season between Cyprus – Slovakia – Cyprus;
EUR 15,000 net payable once the Player was registered (amount was payable to the
Player, but the ultimate beneficiary would be the Player’s agent).
EUR 15,000 net payable by 1 September 2023 (amount was payable to the Player, but
the ultimate beneficiary would be the Player’s agent).
On 20 January 2024, the parties entered into a mutual termination agreement (hereinafter:
the Termination Agreement), whereby the Club undertook to pay the Player a total Payment
of EUR 220,000 net in 12 different instalments, as follows:
-
EUR 19,000 by 31 January 2024;
EUR 19,000 by 29 February 2024;
EUR 19,000 by 31 March 2024;
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6.
EUR 19,000 by 30 April 2024;
EUR 18,000 by 31 May 2024;
EUR 18,000 by 30 June 2024;
EUR 18,000 by 31 July 2024;
EUR 18,000 by 31 August 2024;
EUR 18,000 by 30 September 2024;
EUR 18,000 by 31 October 2024;
EUR 18,000 by 30 November 2024;
EUR 18,000 by 31 December 2024.
Clause 4 of the Termination Agreement stipulates, inter alia, the following:
“[…] The due and timely payment of the Total Payment, according to the payment plan above is
a condition precedent to any waiver of the Player’s rights and remuneration under [the
Contract]. Without derogating from the above, should the Club fall to pay any of the
abovementioned amounts after the lapse of the grace period [of 15 days, as the parties agreed
in a prior section of this same Clause 4 of the Termination Agreement], then the Club will be
immediately obligated to pay the rest of the payments stipulated herein (acceleration of the
entire Total Payment) with 15% (fifteen per cent) interest per annum from the date of any
supposed payment until the effective date of the payment.”
7.
Additionally, Clauses 9 and 10 of the Termination Agreement read as follows:
“9. The [Termination Agreement] is signed as a full and final settlement for all of the
parties’ contractual obligations arising from the [Contract] and the parties have no further
claims and/or obligations against each other.”
“10. The player accepts the abovementioned payment as complete and final settlement of
all his due payables from the club.”
8.
On 1 February 2024, the parties concluded an amendment to the Termination Agreement
(hereinafter: the Amendment), whereby the parties agreed that the first instalment payable
as per the Termination Agreement (EUR 19,000 payable by 31 January 2024) would be paid
in 2 different instalments, as follows:
-
EUR 5,000 by 5 February 2024;
EUR 14,000 by 18 February 2024.
All other instalments remained unchanged, as did the Total Payment of EUR 220,000 under
the Termination Agreement.
9.
On 19 February 2024, the Respondent paid the Claimant the amount of EUR 5,000 (i.e., the
first instalment payable pursuant to the Amendment).
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10. By correspondence dated 20 February 2024, the Claimant put the Respondent in default of
payment of the first instalment under the Termination Agreement and Amendment
thereto, setting a time limit of 15 days in order to remedy the default.
II. Proceedings before FIFA
11. On 19 March 2024, 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
12. According to the Claimant, he shall be entitled to outstanding remuneration and
compensation for breach of contract in the amount of EUR 295,000 net plus 18% interest
p.a. on said amount.
13. The Claimant contends that, out of the full value of the Contract, i.e., EUR 325,000 net, the
Respondent only proceeded with the payment of EUR 35,000 net and, consequently, the
Claimant is owed and shall be paid the difference between both amounts, i.e., EUR 295,000.
The Claimant explained that, upon the Respondent’s breach of the Termination Agreement,
the Claimant was entitled to claim all the amounts due under the Contract.
14. Subsidiarily, the Claimant requested to be awarded the unpaid portion of the Termination
Agreement, i.e., EUR 215,000 net, insofar as the Respondent only paid the amount of EUR
5,000, plus 18% interest p.a. on said amount.
15. As a further subsidiary request, the Claimant requested to be awarded 5% interest p.a. in
default interest and that all amounts awarded to him be net.
16. The Claimant’s requests for relief, in relevant part, were the following:
“1) Order the Club to immediately pay the Player an amount of EUR 295,000 net, with an interest
of 18% p.a. until the effective payment.
2) Alternatively – order the Club to immediately pay EUR 215,000 net, with an interest of 18%
p.a. until the effective payment.
3) In any way, in the event the special interest rate agreed between the parties in[sic]
inapplicable for any reason – in accordance with the long-standing practice of the FIFA Football
Tribunal, order the Club to pay 5% interest p.a. until the effective payment date.”
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b. Position of the Respondent
17. The Respondent did not submit a reply to the claim, despite being given an opportunity to
do so.
III. Considerations of the Dispute Resolution Chamber
a. Competence and applicable legal framework
18. First of all, the Dispute Resolution Chamber (hereinafter: 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 19 March 2024 and submitted for decision on
30 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.
19. Subsequently, the Chamber referred to art. 2 par. 1 of the Procedural Rules and observed
that in accordance with art. 23 par. 1 in combination with art. 22 par. 1 lit. b) of the
Regulations on the Status and Transfer of Players (February 2024 edition), it is competent
to deal with the matter at stake, which concerns an employment-related dispute with an
international dimension between a Slovakian player and a Cypriot club.
20. Finally, 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 19 March 2024, the February 2024 edition
of said regulations (hereinafter: the Regulations) is applicable to the matter at hand as to
the substance.
b. Burden of proof
21. 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
22. Having established its competence and the applicable regulations, the Chamber entered
into the merits of the dispute. In this respect, the Chamber started by acknowledging all
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the above-mentioned facts as well as the arguments and the documentation on file.
However, the Chamber emphasised that in the following considerations it will refer only to
the facts, arguments and documentary evidence, which it considered pertinent for the
assessment of the matter at hand.
i. Main legal discussion and considerations
23. The foregoing having been established, the Chamber moved to the substance of the
matter, and took note of the fact that it pertains to a claim for outstanding remuneration
based on the Termination Agreement and its Amendment.
24. According to art. 21 par. 1 of the Procedural Rules, if the respondent fails to submit a
response to the claim within the time limit, a decision will be made based on the file.
25. In this context, the Chamber first noted that it is undisputed that the Respondent failed to
comply with the terms of the Termination Agreement and the Amendment.
26. Therefore, the Chamber acknowledged that its task was to determine, based on the
arguments presented and the evidence on file, what are the consequences of the
Respondent’s breach of the Termination Agreement and the Amendment.
27. The Chamber took due note of the fact that the Claimant seeks the amounts payable under
the Contract, basing his entitlement to claim the full residual value of the Contract on
Clause 4 of the Termination Agreement, which states, in relevant part, that “The due and
timely payment of the total payment, according to the payment plan above is a condition
precedent to any waiver of the player’s rights and remuneration under [the Contract].” .
28. In this respect, the Chamber also highlights that the foregoing clause does not specify that
any amount(s) due as per the Contract would be immediately payable in case the
Respondent failed to pay any of the amounts due under the Termination Agreement, but
rather provides for the eventual and theoretical possibility to claim amounts due under the
Contract.
29. Furthermore, in the Chamber’s view, the lack of specification in the above-quoted provision
is cured by the following sentences of Clause 4 of the Termination Agreement, where the
parties – this time more clearly – agreed on the specific conditions that would follow the
Respondent’s non-payment of the amounts due under the Contract:
“Without derogating from the above, should the club fall to pay any of the abovementioned
amounts after the lapse of the grace period [of 15 days as the parties agreed], then the
club will be immediately obligated to pay the rest of the payments stipulated herein
(acceleration of the entire total payment) with 15% (fifteen per cent) interest per annum
from the date of any supposed payment until the effective date of the payment.”
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30. Considering the above-quoted section of Clause 4, the Chamber concludes that the parties
foresaw the specific consequences that would arise from the Respondent’s non-payment:
the acceleration of the instalments payable under the Termination Agreement (and
Amendment, considering it forms part of the same constellation of agreements) and the
obligation to pay default interest at the rate of 15% p.a.
31. The Chamber further considered it was relevant to underscore that, under Clauses 9 and
10 of the Termination Agreement, the parties also agreed that the payment of the amount
due as a termination fee (the Total Payment of EUR 220,00 net) constituted the final
settlement to the parties’ dispute and that no further amounts would be payable. In the
Chamber’s view, the foregoing also creates the legitimate expectation that no amounts,
other than those agreed under the Termination Agreement and Amendment, would be
due.
32. Therefore, the Chamber concluded that only the Termination Agreement and Amendment
shall serve as the contractual basis for the dispute at hand. Hence, the Claimant’s claims in
connection with or pursuant to the Contract are rejected.
33. 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 Termination Agreement and Amendment, i.e., EUR 215,000 net.
34. In addition, taking the Claimant’s request and the wording of the Termination Agreement
into consideration, as well as the constant practice of the Football Tribunal, the Chamber
decided to award the Claimant default interest. In this respect, insofar as the parties agreed
on the rate of 15% p.a., which falls within the limits provided by the jurisprudence of the
Football Tribunal, the Chamber expressly rejects the Claimant’s request to be awarded
interest of 18% p.a. and awards the agreed-upon default interest of 15% p.a. However, as
the Claimant failed to specify the dies a quo of the interest requested and did not request
interest from the due date(s) of the claimed amount, the Chamber, once again invoking its
constant practice, concludes that the interest to be awarded shall run as from the date of
the claim, i.e., as from 19 March 2024, until the date of effective payment.
ii. Compliance with monetary decisions
35. 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.
36. 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
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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.
37. Therefore, bearing in mind the above, the Chamber 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 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.
38. 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.
39. 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
40. 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.
41. Likewise, and for the sake of completeness, the Chamber recalled the contents of art. 25
par. 8 of the Procedural Rules and decided that no procedural compensation shall be
awarded in these proceedings.
42. Lastly, the Chamber 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, Erik Sabo, is partially accepted.
2.
The Respondent, Anorthosis Famagusta, must pay to the Claimant the following amount(s):
- EUR 215,000 net as outstanding remuneration plus 15% interest p.a. as of 19 March
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
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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).
CONTACT INFORMATION
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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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