The case involves a complex arbitration dispute between Borussia VfL 1900 Mönchengladbach GmbH (Borussia) and Club Atlético Boca Juniors (Boca), brought before the Court of Arbitration for Sport (CAS) with the involvement of FIFA. The dispute stemmed from two agreements signed in 2006: a Transfer Agreement and a Cooperation Agreement. The Transfer Agreement involved the transfer of a player from Boca to Borussia for a fixed fee, including a clause entitling Boca to 15% of any future transfer fee if the player was sold to another club. The Cooperation Agreement outlined a partnership for youth development, training exchanges, and collaborative activities, including the transfer of youth players between the clubs.
The central issue was whether CAS had jurisdiction under Article 22(e) of FIFA's Regulations on the Status and Transfer of Players (RSTP), which covers disputes between clubs from different associations not falling under other specified categories. The CAS panel examined the scope of this provision and concluded it was not limited to disputes arising solely from loans or transfers but could encompass broader disagreements. The panel emphasized interpreting the parties' intentions when determining jurisdiction.
Disagreements arose over the execution of the Cooperation Agreement, with Borussia accusing Boca of failing to meet obligations, such as providing player lists and organizing training sessions. Borussia terminated the agreement in 2007, demanding reimbursement of USD 765,000 paid upon signing. Meanwhile, Boca claimed 15% of a subsequent transfer fee from Borussia to another club, leading to a FIFA ruling in Boca's favor. Borussia appealed to CAS, challenging FIFA's decision and arguing that the Cooperation Agreement fell under FIFA's jurisdiction due to its transfer-related clauses.
The CAS panel analyzed the agreement's nature, noting it included provisions for player transfers and referenced FIFA rules, indicating the parties' intent to resolve disputes through sporting bodies. The panel concluded that FIFA had jurisdiction over Borussia's counterclaim and should not have declared it inadmissible. It also found the claim and counterclaim sufficiently connected to be addressed together, given their shared context and timing. The panel decided to retain jurisdiction at CAS rather than referring the case back to FIFA, opting to issue a new decision on the merits.
The dispute highlights the complexities of international football agreements and the challenges of jurisdictional boundaries in sports arbitration. The case underscores the importance of clear contractual terms and the role of arbitration in resolving conflicts between clubs from different associations. The panel's decision reaffirmed the principle that disputes involving transfer-related agreements should be resolved within the football regulatory framework, respecting the parties' intentions and the broader goals of sporting governance.