The case involves a dispute between Czech football clubs FC Slovacko and FC Banik Ostrava, adjudicated by the Court of Arbitration for Sport (CAS), concerning a financial obligation arising from a player transfer contract. The conflict centered on the interpretation of a clause in the transfer agreement requiring FC Slovacko to pay FC Banik Ostrava CZK 4,000,000 plus VAT if the transferred player, Mario Lička, was later transferred to another club or had his contract extended. The player's contract with FC Slovacko expired in August 2006, after which he joined Southampton FC as a free agent. FC Banik Ostrava invoiced FC Slovacko for the stipulated amount, arguing the player's move triggered the payment clause. FC Slovacko refused, leading FC Banik Ostrava to file a claim with the Arbitration Commission of the Czech Football Association (Czech FA), which ruled in favor of FC Banik Ostrava. FC Slovacko appealed to the Appellate and Review Commission of the Czech FA, which declined jurisdiction, citing lack of authority to review the Arbitration Commission's decisions. FC Slovacko then filed a motion for a new trial, which was dismissed, prompting an appeal to CAS.
The CAS panel addressed procedural and substantive issues, including the exhaustion of internal remedies, the binding nature of arbitration clauses, and the interpretation of ambiguous contract terms under Swiss law. The panel found that FC Slovacko had legitimately pursued all available internal remedies, given the procedural uncertainty and lack of clarity in the Czech FA's rules. The panel also examined whether the player's move to Southampton constituted a triggering event under the transfer contract. Applying Swiss legal principles, particularly Article 18 of the Swiss Code of Obligations, the panel emphasized interpreting the contract based on the parties' mutual intention rather than literal wording. It concluded that the conditions for compensation were not met, as FC Slovacko received no financial gain from the player's early termination and subsequent registration with Southampton. The player negotiated his new contract independently, and FC Slovacko had no involvement in the process.
The CAS upheld FC Slovacko's appeal, annulled the Czech FA's decision, and ordered FC Banik Ostrava to reimburse FC Slovacko CZK 4,760,000, including late interest payments, and the arbitration fee of CZK 62,475. The ruling clarified that the compensation clause was not triggered and highlighted the importance of clear contractual terms and procedural fairness in sports disputes. The case underscores the complexities of sports arbitration, particularly when one party refuses to engage fully in the process, and the necessity of exhausting internal legal remedies before seeking external arbitration. The decision reinforces the role of CAS in ensuring consistent and fair resolution of sports-related conflicts.