The case revolves around a dispute between FK Zeljeznicar, a football club from Bosnia and Herzegovina, and Racing Club Dakar, a club from Senegal, mediated by FIFA and later appealed to the Court of Arbitration for Sport (CAS). The conflict stemmed from FK Zeljeznicar's failure to fulfill financial obligations related to the transfer of two players, as ordered by FIFA's Dispute Resolution Chamber (DRC) in January 2008. The DRC had mandated FK Zeljeznicar to pay Racing Club Dakar a total of EUR 150,000, split into two amounts for each player, with a 5% interest penalty if unpaid within 30 days. Despite the ruling, FK Zeljeznicar did not comply and instead appealed to CAS, which later terminated the appeals without addressing the substance of the case.
Following the non-payment, FIFA initiated disciplinary proceedings in November 2009. The parties attempted to settle through payment plans, but FK Zeljeznicar repeatedly breached these agreements shortly after reaching them. Racing Club Dakar reported these breaches to FIFA, leading to multiple resumptions of disciplinary proceedings. In April 2010, FIFA's Disciplinary Committee (DC) ruled that FK Zeljeznicar had violated Article 64 of the FIFA Disciplinary Code (FDC), which penalizes failure to comply with financial decisions. The DC imposed a fine of CHF 15,000 and granted a final 30-day grace period for payment, warning of a six-point deduction from the club's domestic league standings and potential relegation if the debt remained unpaid.
FK Zeljeznicar appealed the DC's decision to CAS, citing financial and sporting difficulties as justification for non-payment. However, the CAS Sole Arbitrator, Prof. Luigi Fumagalli, upheld the DC's ruling, emphasizing that financial hardship does not excuse non-compliance with financial obligations. The arbitrator noted FK Zeljeznicar's repeated breaches of settlement agreements and delayed payments, concluding that the club had clearly failed to meet its obligations. The arbitrator also stated that sanctions could only be reviewed if evidently disproportionate, which was not the case here.
The final award, issued on September 8, 2010, confirmed the DC's decision, reinforcing FIFA's authority in enforcing disciplinary measures. The case highlights the enforceability of FIFA's financial rulings and the role of CAS in resolving sports-related disputes, underscoring the principle that clubs must adhere to financial decisions regardless of their circumstances. The arbitrator dismissed FK Zeljeznicar's appeal, upheld the fine, and ordered the club to bear the costs of the proceedings, including legal expenses for Racing Club Dakar and FIFA. The decision serves as a reminder of the consequences of non-compliance with FIFA's disciplinary framework.