The case CAS 2006/O/1055 involved a dispute between Spanish football coaches and physical trainers—Vicente Del Bosque González, Antonio Grande Cereijo, Francisco Jiménez Martin, and Francisco Javier Miñano Espín—and the Turkish football club Beşiktaş. The dispute arose from the unilateral termination of employment contracts signed on 6 June 2004, which were set to run until 30 June 2006, with an option for Beşiktaş to terminate after the first season if notified by 15 May 2005. The contracts stipulated salaries, bonuses, and tax arrangements, including gross-up provisions to ensure net payments free of taxes. The claimants argued that Beşiktaş terminated the contracts without just cause, leading to a claim for compensation.
The Court of Arbitration for Sport (CAS) addressed several legal issues. It ruled that mandatory provisions of Turkish law claiming exclusive jurisdiction for arbitral bodies under the Turkish Football Federation did not apply, as Swiss public policy did not require CAS to decline jurisdiction. The CAS determined that the original "Private Contracts" contained a valid arbitration clause granting CAS jurisdiction, which took precedence over later-signed "Single Type Contracts" that referenced Turkish Football Federation arbitration. The panel also found that Article 337c of the Swiss Code of Obligations, governing damage mitigation, was not mandatory, allowing the parties to agree on compensation terms without deductions. The contract explicitly stated that compensation would not be reduced under any circumstances, so no mitigation was applicable.
The CAS ultimately found in favor of the claimants, upholding their right to full compensation as per the contract terms. The decision reinforced the principle that contractual agreements take precedence over general legal principles like damage mitigation unless explicitly overridden. It also clarified jurisdictional matters, affirming CAS's authority in disputes involving international parties, even when foreign laws claim exclusive jurisdiction. The ruling underscored the importance of clear contractual terms and the burden of proof in arbitration cases.
The panel calculated the compensation due to the claimants based on Clause 3.F1 of their private contracts, which guaranteed a minimum net amount upon early termination. The compensation was adjusted for taxes based on the claimants' tax residency at the time of termination. For Vicente Del Bosque González, the net compensation was calculated as EUR 3,250,000, which, after a 45% gross-up, resulted in EUR 5,909,090.90. After deducting EUR 1,000,000 already received, the final compensation was EUR 4,909,090.90. Similarly, Antonio Grande Cereijo and Francisco Javier Miñano Espín were each awarded EUR 718,938.18, while Francisco Jiménez Martin received EUR 359,463.63, all after applying the same gross-up calculation. The claimants were also granted interest at a 5% legal rate from the date of their dismissal, 27 January 2005.
The case highlights the complexities of cross-border employment disputes in football and the role of arbitration in resolving them. It emphasizes the enforceability of contractual terms in employment disputes and the importance of clear agreements in determining compensation for early termination. The decision concluded with orders for Beşiktaş to pay the specified amounts plus interest and dismissed all other claims. The award was made public, ensuring transparency in the legal proceedings.