The case revolves around a legal dispute between Azovmash Mariupol Basketball Club and professional basketball player Marc Salyers concerning unpaid salaries and the termination of their contract. The agreement, signed on 1 July 2008, stipulated a monthly salary of USD 88,000 for Salyers during the 2008 season, with penalties for late payments and the player's right to terminate the contract if payments were delayed by more than 21 days. The contract also required any modifications to be made in writing. By late 2008, the Club faced financial difficulties, leading to delayed payments for October, November, and December. Salyers' agent sent multiple notices regarding overdue payments, and the player temporarily stopped participating in team activities as per the agreement. Despite partial payments, Salyers terminated the contract on 30 December 2008 due to the Club's failure to meet payment deadlines.
The dispute escalated when Salyers filed a claim with the FIBA Arbitral Tribunal (FAT), which ruled in his favor, ordering the Club to pay outstanding salaries, interest, and legal fees. The Club appealed to the Court of Arbitration for Sport (CAS), arguing that Salyers unlawfully terminated the agreement and should not receive further payments. The CAS upheld the FAT's decision, emphasizing the clarity of the contract terms and rejecting the Club's claim that financial difficulties justified non-payment. The CAS also dismissed the Club's argument that Salyers' continued participation in games implied a contract modification, as any changes required written consent. Additionally, the CAS rejected the Club's request for retroactive interest on late payments, deeming it inadmissible under procedural rules prohibiting counterclaims in appeal arbitration cases.
The CAS Sole Arbitrator further examined whether the agreement had been varied due to the Club's actions in November 2008 or if Salyers had waived his termination rights by continuing to play after receiving bank transfer details in December. The Arbitrator found no evidence of a contract variation or waiver, noting that Salyers acted in good faith despite repeated payment delays. The Arbitrator highlighted that the Club had set its own deadline for payment by promising funds would arrive by 29 December 2008 but failed to meet it, justifying Salyers' termination. The Sole Arbitrator upheld the termination as valid and ordered the Club to pay Salyers USD 440,000 plus costs. The CAS dismissed the Club's appeal, confirmed the FAT award, and rejected all further claims, reinforcing the importance of adhering to contractual terms and the enforceability of penalties for breaches in sports-related agreements. The ruling underscored the player's right to terminate the contract due to the Club's failure to fulfill its financial obligations.