The case involves a dispute between Romanian football club FC Universitatea Craiova and Brazilian player Alexandre Negri regarding the termination of an employment contract. The Court of Arbitration for Sport (CAS) ruled on the matter, finding that the club unlawfully terminated the contract without just cause and failed to meet its financial obligations. The dispute centered on whether the club had valid grounds to terminate the contract and the resulting compensation owed to the player. Under Swiss law and FIFA regulations, a formal warning is typically required before terminating a contract unless the breach is severe. The club and player signed a contract in March 2005, but the club soon expressed dissatisfaction with the player's performance, demoted him to the second team, and pressured him to sign a termination agreement waiving his rights to unpaid salaries. When the player refused, he left the club, and his lawyer demanded payment for unpaid wages, escalating the matter to FIFA's Players' Status Committee.
FIFA's Dispute Resolution Chamber (DRC) ruled that the club breached the contract without just cause, ordering it to pay €59,000 in compensation for unpaid salaries and damages, with a 5% annual interest penalty if unpaid within 30 days. The club appealed to CAS, which upheld the DRC's decision. The CAS panel emphasized that the club's failure to pay salaries constituted a fundamental breach and that the contract's validity was not contingent on the player having a work permit, as the responsibility for obtaining the permit lay with the club. The panel also dismissed the club's claim that the player's absence from training justified termination, noting the lack of prior warnings or evidence supporting the club's allegations. The player had validly terminated the contract due to the club's persistent financial breaches, which endangered his livelihood.
The CAS panel referenced Swiss law and FIFA regulations, concluding that the player had just cause to terminate the contract and was entitled to compensation. The compensation amount, set by the DRC, was deemed reasonable, covering unpaid wages and damages. The panel also considered but ultimately declined to impose additional administrative sanctions on the club, as it had already faced penalties in similar cases. The ruling underscored the importance of contractual compliance and the protection of players' rights, particularly in cases involving unpaid wages and unilateral termination. The CAS dismissed the club's appeal, affirming the DRC's decision and reinforcing the principles of fair treatment and contractual obligations in professional football. The case highlights the legal safeguards for players and the consequences for clubs failing to meet their contractual duties.