The case revolves around a contractual dispute involving the football player M.P., his former club PFC Krilja Sovetov, and his new club Cruzeiro Esporte Clube, adjudicated by the Court of Arbitration for Sport (CAS). M.P. signed a three-year contract with PFC Krilja Sovetov in 2004, which included a monthly salary and additional benefits. However, the club failed to pay his wages on time, leading to repeated delays and non-payments. In response, M.P. terminated the contract in March 2005, citing just cause due to the club's financial breaches. He subsequently signed with Cruzeiro Esporte Clube in April 2005. PFC Krilja Sovetov contested the termination, claiming the contract was still valid and sought compensation for breach of contract. The dispute was initially brought before FIFA's Dispute Resolution Chamber (DRC), which ruled in 2006 that M.P. had unjustifiably breached his contract and ordered him to pay $2,040,000 in compensation to PFC Krilja Sovetov. The DRC also held Cruzeiro jointly responsible for the payment and imposed sporting sanctions, including a four-month playing ban on M.P. and a transfer ban on Cruzeiro. Both M.P. and Cruzeiro appealed the decision to CAS, which partially upheld the appeal in 2007, reducing the compensation to $1,058,000 plus 5% interest from August 2006 and maintaining the four-month playing ban for M.P. The CAS ruled that Cruzeiro did not induce the breach, as the evidence did not support the presumption under FIFA Regulations, but upheld its joint liability for the compensation due to its failure to verify the player's contractual status. The panel emphasized the importance of contractual stability in football and the consequences for clubs that fail to meet their financial obligations. The arbitration costs were shared equally among M.P., FIFA, and PFC Krilja Sovetov, with each party bearing its own legal expenses. The case underscores the complexities of international football contracts and the role of governing bodies like FIFA and CAS in resolving such disputes, highlighting the need for due diligence in player transfers to avoid unintended financial and disciplinary consequences.