The case involves a contractual dispute between Brazilian football player Lenilson Batista de Jesus and Mexican club Showmex S.A. de C.V. (Jaguares de Chiapas). The parties signed a professional football agreement in July 2007, valid until May 2010, which included an annual salary of $500,000 and a $400,000 signing bonus. The player was loaned to Brazilian clubs during the contract period. In August 2009, the club informed the player they would not continue the contract, leading to an early termination agreement requiring a payment of $1.3 million Mexican pesos by September 2009. The club failed to make this payment, prompting the player to file a claim with FIFA's Dispute Resolution Chamber (DRC) in March 2010. FIFA declined jurisdiction, deferring to the Mexican Football Federation's Conciliation and Resolution of Controversies Commission (CRCC). The player then filed with the CRCC, but the case was complicated by the club's transfer of assets to another entity. The CRCC dismissed the claim in July 2011, ruling it was time-barred under Mexican labor law, which imposes a one-year statute of limitations unless interrupted by legal action. The player argued his claim was timely as he had sought remedy through FIFA within three months of the club's default, but the CRCC maintained its decision.
The player appealed to the Court of Arbitration for Sport (CAS) in August 2011, arguing the club's non-compliance with the termination agreement invalidated it, requiring adherence to the original contract terms. He sought $500,000 for the remaining contract period, $140,000 for unpaid federative rights, plus interest and legal costs. The club countered that Mexican labor law's one-year limitation applied and requested dismissal. The CAS proceedings involved a sole arbitrator who ruled based on written submissions. The arbitrator rejected the CRCC's reasoning, noting the player acted diligently by first filing with FIFA within five months of the breach, which interrupted the prescription period under Mexican law. The arbitrator also referenced FIFA regulations, which allow a two-year filing period, making the player's March 2010 submission timely.
On the merits, the arbitrator found the club in breach for failing to pay the agreed $1.3 million under the termination agreement, rendering it ineffective and reinstating the original contract terms. The club owed the player $500,000 for the 2009-2010 season and $140,000 for unpaid federative rights from May 2008. The club's argument that the player's subsequent employment should offset the debt was dismissed, as evidence showed only one month of overlap. The arbitrator applied Swiss law subsidiarily, setting a 5% annual interest rate on the unpaid amounts from their respective due dates. The CAS ruled in favor of the player, ordering the club to pay $590,000 plus interest from September 2009 until full payment. The decision highlights the complexities of cross-border sports disputes, jurisdictional challenges, and the importance of timely legal action to preserve claims. It underscores the enforceability of contractual obligations under FIFA regulations and applicable national laws.