The case involves a legal dispute between professional football player Laszlo Sepsi and FC Timisoara regarding the termination of his employment contract due to unpaid salaries. The Court of Arbitration for Sport (CAS) issued an award on January 25, 2012, with Mark Hovell as the sole arbitrator. The central issue was whether Sepsi had just cause to terminate his contract under Article 18.10 of the Romanian Football Federation’s (RFF) Regulations on the Status and Transfer of Players (RSTP RFF), which permits termination if a club fails to pay at least 75% of owed amounts. The contract, signed in February 2010, stipulated monthly payments and benefits, but the club failed to meet these obligations, leading Sepsi to claim termination and unpaid dues.
Sepsi sought termination of the contract and payment of outstanding wages and benefits, totaling EUR 100,969.63 and RON 20,040. The dispute escalated to the National Dispute Resolution Chamber (NDRC), which ruled that the club owed Sepsi EUR 36,533.43 and RON 1,680, payable within five days to avoid contract termination. The club made partial payments, but Sepsi appealed, arguing the decision was insufficient. The Appeal Committee of the Romanian Professional Football League (LPF) upheld the NDRC’s decision, prompting Sepsi to take the case to CAS.
At CAS, Sepsi sought to overturn the LPF’s decision, terminate the contract with just cause, and secure payment of EUR 81,489 in unpaid salaries, along with compensation for the remaining contract period until December 2014. He also requested sporting sanctions against the club, including a transfer ban, and reimbursement of legal costs. The club, in response, asked CAS to dismiss Sepsi’s appeal and uphold the LPF’s decision.
The CAS emphasized its limited review power under Article R57 of the CAS Code, which restricts new claims or requests for sporting sanctions not previously addressed. The arbitrator ruled that the 75% payment threshold under Article 18.10 should be assessed as of the original complaint date (December 16, 2010), not the closure of proceedings. At that time, Sepsi had received only 45.5% of his dues, justifying termination with just cause. The CAS corrected the NDRC and Appeal Committee’s errors by declaring the contract terminated and awarding Sepsi EUR 136,343 for unpaid remuneration and accommodation benefits, plus RON 43,800 for unpaid food allowance, minus any payments made after January 13, 2012.
The arbitrator declined to award interest due to insufficient evidence and dismissed other relief requests, including sporting sanctions, as unnecessary. The decision underscored the importance of timely payment compliance in player contracts and clarified procedural requirements for just cause termination under football regulations. The case highlights the complexities of contractual disputes in professional sports and the role of arbitration in resolving such conflicts. The final ruling partially allowed Sepsi’s appeal, set aside the prior decision, and ordered the club to pay the outstanding amounts while dismissing all other claims.