The case involves a dispute between Serbian footballer Marko Ljubinkovic and Romanian club S.C. Sporting Club S.A. Vaslui, which was adjudicated by the Court of Arbitration for Sport (CAS) following a decision by FIFA's Dispute Resolution Chamber (DRC). The conflict arose from the termination of Ljubinkovic's employment contract, signed in 2008 and set to run until 2011, due to the club's failure to meet financial obligations, including unpaid salaries and bonuses. The player terminated the contract unilaterally in January 2010, citing these breaches, and filed a complaint with FIFA seeking compensation. The club, in turn, pursued disciplinary action through the Romanian Football Federation (RFF), which imposed a fine and suspension on the player, though this decision was later contested.
The CAS panel addressed several key legal issues, including jurisdictional competence and the applicability of FIFA regulations. The panel affirmed FIFA DRC's jurisdiction over international employment disputes in football, rejecting the club's argument that Romanian law or national arbitration bodies should govern the case. It emphasized that FIFA's Regulations on the Status and Transfer of Players (RSTP) apply universally to such contracts, regardless of national law classifications. The panel also dismissed the club's claim that the Romanian Professional Football League's DRC (RPFL DRC) had precedence, noting its lack of independence and equal representation as required by FIFA standards. The contractual clause referencing RFF courts was deemed insufficient to override FIFA's jurisdiction.
On the substantive matter, the panel upheld the player's right to terminate the contract with just cause due to the club's persistent non-payment of salaries and unjustified exclusion from team activities. The club was ordered to pay €96,535 in outstanding salaries and bonuses, plus 5% annual interest, and €385,000 as compensation for breach of contract, totaling €481,535. The panel rejected the club's arguments for reduced compensation, noting the absence of agreed-upon terms and the player's obligation to mitigate damages. It also clarified that earnings from the player's subsequent contract with a Cypriot club did not offset the owed compensation.
The CAS decision reinforced the importance of contractual stability and procedural fairness in football employment disputes, upholding FIFA DRC's authority and the enforceability of its regulations. The panel dismissed the club's appeal in its entirety, including disciplinary sanctions imposed by FIFA, which were deemed outside the appeal's scope. The ruling underscores the precedence of FIFA's framework in resolving international player-club disputes and the consequences of unilateral breaches by clubs. The case highlights the complexities of football governance and the legal mechanisms ensuring compliance with contractual obligations.