The case involves a legal dispute between Greek football club Aris F.C. and Brazilian player Sérgio Silva de Souza Júnior regarding the termination of an employment contract and subsequent financial obligations. The parties initially signed a contract in January 2004, renewed in December 2004, set to run until December 2005. In January 2005, the player suffered an injury, leading to a termination agreement signed on January 20, 2005, which stipulated a €30,000 payment—€16,000 upfront and €14,000 later—with a clause allowing the contract to revive from July 2005 if the player recovered fully. The player claimed he only received €16,000, while Aris argued it paid an additional €4,000 and could not locate the player to pay the remaining €8,000. The player disputed this, asserting Aris knew his whereabouts but made no effort to contact him. In July 2005, the player, now recovered, attempted to return but demanded full payment first. His lawyer later declared the termination agreement invalid under FIFA rules protecting injured players and demanded the full 2005 salary.
FIFA was approached in November 2005, with the player claiming €124,362.96 (the full contract amount) and Aris counterclaiming for repayment of €20,000 it alleged to have paid. The Court of Arbitration for Sport (CAS) examined the case under Swiss law, noting termination agreements are generally valid unless abusive or signed under duress. The burden of proof rested on the claimant, with the standard being beyond reasonable doubt. The CAS referenced Swiss Code of Obligations, stating payment obligations default automatically if not met by the agreed date. The dispute centered on the validity of the termination agreement, whether Aris fulfilled its payment obligations, and whether the player’s lack of communication justified non-payment. The panel found no evidence the player signed under duress, as the agreement was drafted in Portuguese to ensure his understanding and included protective clauses.
The panel ruled Aris breached the agreement by failing to pay the outstanding amount and did not prove it attempted to contact the player. This triggered a clause entitling the player to the full 2005 contract amount. The FIFA Dispute Resolution Chamber (DRC) awarded the player €103,362.96, but it was unclear whether this was net or gross. The player argued for net amounts, but the panel found circumstantial evidence—such as non-round figures and 2004 payment sheets showing deductions—suggested gross amounts subject to Greek tax and social security. The CAS upheld the DRC’s decision, dismissing other claims and emphasizing Aris’s failure to fulfill obligations and the player’s lack of proof regarding net payments. The ruling reinforced contractual terms and legal requirements under Greek law, highlighting the complexities of employment terminations in sports, particularly concerning injured players and financial settlements.