The case involves a complex legal dispute between Ituano Sociedade de Futebol Ltda, a Brazilian football club, and Silvino João de Carvalho, a professional footballer, along with the Turkish club Buyuksehir Belediyesi Ankaraspor and FIFA. The conflict arose from an employment contract signed in January 2004 between Ituano and the Player, which included a penal clause for breach of contract. Ankaraspor later made offers to acquire the Player’s federative rights, leading to negotiations. An amendment to the contract was allegedly signed in July 2004, extending its term and increasing the Player’s salary, though the Player denied signing it. Ituano claimed it offered the Player payment for his federative rights, but he left for Turkey to join Ankaraspor without responding.
The dispute was initially brought before FIFA’s Dispute Resolution Chamber (DRC), which ruled in favor of the Player, dismissing Ituano’s claims. Ituano appealed to the Court of Arbitration for Sport (CAS), arguing that FIFA lacked jurisdiction because the dispute had been submitted to a Brazilian labor court. CAS determined that FIFA had jurisdiction since the labor court had only issued interim measures and not a final judgment on the merits. The case highlights the principle of avoiding conflicting decisions and forum shopping, ensuring parties have access to a fair adjudication process within the sports arbitration framework.
The dispute centered on whether the Player breached his contract by joining Ankaraspor without fulfilling his obligations, including waiving fines and federative rights. Ituano sought USD 1,500,000 in damages, alleging contractual breach and improper transfer. The Player argued his signature on the amendment was forged and that his contract had been terminated by a labor court decision. Ankaraspor maintained it signed the Player only after confirming his legal release from Ituano. The labor court initially granted the Player an injunction allowing his transfer but later dismissed his petition due to his absence at a hearing.
FIFA’s DRC ruled Ituano’s claim inadmissible, noting the labor court’s decision did not address the substantive dispute and that the Player’s absence influenced the outcome. The DRC emphasized its jurisdiction over international transfer disputes but acknowledged the parties’ right to seek redress in civil courts for employment matters. CAS upheld the DRC’s decision, reinforcing that employment-related disputes may require civil court intervention unless parties opt for sports arbitration. The case underscores the complexities of contractual stability, jurisdictional overlaps, and procedural challenges in international football transfers.
The jurisdictional and procedural framework of CAS was also examined, noting that appeals must be lodged within 21 days of the decision’s notification and that all internal channels must be exhausted before recourse to CAS. The applicable law for such disputes is determined by FIFA rules and Swiss law, with the FIFA Regulations on the Status and Transfer of Players (RSTP) 2005 governing the case. Key provisions included Article 17, outlining compensation and sporting sanctions for contract termination without just cause, and Article 22, defining FIFA’s competence in disputes involving contractual stability and international dimensions.
The CAS panel ultimately ruled that Ituano’s claim should not have been deemed inadmissible by FIFA, as the dispute had an international character and Ituano had not sought redress in a civil court for employment-related disputes. The panel emphasized that requesting interim measures from a judicial authority does not negate an arbitration agreement. Consequently, the CAS panel annulled the DRC’s decision and referred the case back to FIFA for a fresh evaluation, ensuring a comprehensive assessment of the merits, including the involvement of Ankaraspor and potential disciplinary measures. The decision underscores the importance of proper jurisdictional assessment and procedural fairness in resolving international contractual disputes in football.