The case revolves around a dispute between RC Recreativo de Huelva SAD, a Spanish football club, and Trabzonspor SK, a Turkish football club, concerning the transfer of a player and the validity of the associated transfer agreement. The Court of Arbitration for Sport (CAS) issued its final award on 4 April 2012, addressing several legal issues stemming from the failed transfer. The dispute originated from a transfer agreement signed on 31 August 2007, which stipulated that Huelva would pay Trabzonspor a transfer fee of USD 1,000,000 by midnight the same day. Due to banking constraints and an incorrect IBAN number, Huelva was unable to process the payment on time and requested an extension until 3 September 2007, which Trabzonspor allegedly agreed to. However, when the payment was not received by 4 September, Trabzonspor declared the transfer agreement invalid and returned the funds, which arrived on 5 September.
Huelva had already signed an employment contract with the player, assuming the transfer would proceed, but Trabzonspor refused to issue the International Transfer Certificate (ITC), arguing the player remained under contract with them. FIFA’s Single Judge later provisionally allowed the player’s registration with Huelva but ordered Huelva to pay a reduced transfer fee, citing Trabzonspor’s wrongful withholding of the ITC. Huelva appealed to CAS, seeking nullification of FIFA’s decision and compensation for damages. The CAS panel, composed of three arbitrators, upheld the principle that a transfer agreement is binding only if the agreed payment is made within the stipulated time. Since Huelva failed to meet the deadline, the transfer agreement was deemed invalid, rendering the employment contract with the player void. The panel also ruled that Trabzonspor’s refusal to issue the ITC was justified, as the transfer had not been validly completed.
The panel further clarified that the invalidity of the transfer agreement meant the player’s original contract with Trabzonspor remained in force. Huelva’s claim for damages was dismissed, as the player’s decision to leave Trabzonspor did not automatically entitle Huelva to compensation. The panel emphasized that any claim for breach of contract would require separate proceedings under FIFA regulations. After considering all evidence and arguments, including witness testimonies and Swiss law provisions, the panel concluded that neither party was entitled to compensation. The final decision partially upheld Huelva’s appeal, stating that neither Huelva nor Trabzonspor could claim compensation for the failed transfer. The case underscores the importance of strict adherence to contractual terms in football transfers and the role of CAS in resolving such disputes. The ruling reinforced the binding nature of payment deadlines and the consequences of failing to meet them, while also highlighting the need for clear communication and good faith in international transfer negotiations.