The case involves a dispute between Turkish football club Sivasspor and Cameroonian player Raymond Kalla over the unilateral termination of Kalla's employment contract. The contract, signed on August 10, 2005, was valid until June 30, 2007. On June 8, 2006, Sivasspor terminated the contract, citing the new coach's decision that Kalla's services were no longer required. Kalla filed a claim with FIFA's Dispute Resolution Chamber (DRC), arguing the termination was without just cause and seeking $295,000 in unpaid compensation. The DRC partially accepted Kalla's claim, ordering Sivasspor to pay $175,000 within 30 days, with a 5% annual interest if unpaid, and referred the matter to FIFA's Disciplinary Committee for potential sanctions. Sivasspor appealed to the Court of Arbitration for Sport (CAS).
The CAS panel examined the case and upheld the DRC's decision, ruling that Sivasspor's termination was unilateral and lacked just cause, as it was based solely on the new coach's preference. The panel emphasized that a player's signed statement acknowledging receipt of payments for one season does not waive rights for subsequent seasons. While the termination was legally valid in effect, the panel found it required compensation under Article 17(1) of FIFA's Regulations, calculated based on the remaining contract term and the principle of equality between the parties. The CAS affirmed the DRC's jurisdiction, citing FIFA's Regulations for the Status and Transfer of Players (2005 edition), which govern international employment disputes between clubs and players.
The DRC had previously ruled that while it lacked jurisdiction over criminal allegations like coercion, Kalla’s signed waiver relinquished his claims for the 2005/06 season. The DRC also invalidated clause 13 of the contract, which granted Sivasspor unilateral termination rights without reciprocal benefits for the player, deeming it unfair. Consequently, the DRC ruled that Sivasspor breached the contract without just cause and ordered compensation. Sivasspor appealed to the CAS, challenging the DRC’s decision and questioning the contract’s validity and interpretation of clauses 12 and 13. The CAS confirmed its jurisdiction under FIFA statutes and Swiss law, as the contract lacked an explicit governing law clause. The panel upheld the DRC’s findings, affirming the contract’s overall validity while invalidating clause 13 due to its one-sided nature.
The CAS panel concluded that while clause 13 provided a termination option, it created a significant imbalance, as one party faced stricter conditions for termination. The termination by Sivasspor, based on the new coach's preference rather than just cause, entitled Kalla to compensation under FIFA Regulations and Swiss law. The panel referenced Article 17 of FIFA Regulations and Article 337 of the Swiss Code of Obligations, which support compensation for termination without just cause. The compensation amount was adjusted to $150,000, mirroring the contract's terms where either party could terminate by paying that amount. The CAS partially upheld the appeal, reducing the compensation from $175,000 to $150,000, plus 5% interest starting from July 21, 2007. The decision underscores the importance of equitable contract terms and fair treatment in resolving disputes between clubs and players.