The case revolves around a contractual dispute between Zamalek Sporting Club (the Appellant) and Carlos Roberto Ferreira Cabral (the Respondent), a Brazilian football coach, concerning the termination of his employment contract. The contract, signed in November 2004, was set to run until June 2006 and included terms related to salary, signing-on fees, and termination conditions. Zamalek alleged that the Respondent breached his obligations by missing training sessions and exhibiting negative behavior, which they claimed led to poor team performance. As a result, the Club suspended his salary payments in March 2005 and terminated the contract in April 2005. The Respondent disputed these allegations, arguing that he had not missed any training sessions and that the Club had barred him from accessing its facilities. He filed a claim with FIFA’s Players’ Status Committee, seeking unpaid salaries, signing-on fees, and other contractual benefits totaling approximately $420,000, along with damages for reputational harm caused by the Club’s public statements.
The FIFA Players’ Status Committee’s Single Judge ruled in favor of the Respondent, applying the 2001 FIFA Regulations for the Status and Transfer of Players. The Judge found Zamalek in breach of contract for failing to pay salaries from March to May 2005, totaling $48,000, due to a lack of evidence supporting the Club’s claims. The Judge also determined that Zamalek had terminated the contract without just cause, ordering the Club to pay the $100,000 signing-on fee for the second year as stipulated in the contract. However, the Respondent’s claims for remaining salaries, airplane tickets, and damages were rejected due to insufficient proof. The total awarded was $148,000, payable within 30 days, with a 5% annual interest penalty for late payment.
Zamalek appealed the decision to the Court of Arbitration for Sport (CAS), reiterating their claim that the Respondent’s alleged breaches justified the salary suspension and termination. The CAS reviewed the case, confirming its jurisdiction under FIFA statutes and the CAS Code, and applied FIFA regulations primarily, with Swiss law as a subsidiary. The Panel found no evidence to support Zamalek’s allegations, noting the absence of police reports or other substantiating documentation. The CAS upheld the FIFA decision, ruling that Zamalek was not entitled to withhold the Respondent’s salary and ordering payment of $148,000, plus interest if unpaid within 30 days. The appeal was dismissed, and the FIFA Single Judge’s decision was confirmed in full.
The case highlights the importance of adhering to contractual obligations and the necessity of clear, substantiated evidence when alleging breaches in employment disputes. It underscores the legal protections afforded to coaches and the consequences for clubs that terminate contracts without just cause. The CAS’s ruling reinforces the principle that unilateral claims without proof are insufficient to justify contractual breaches or withhold payments, ensuring fairness and accountability in contractual agreements.