The case involves a legal dispute between Anorthosis Famagusta FC, a Cypriot football club, and Ernst Middendorp, a German football coach, over the termination of Middendorp's employment contract. The contract, signed on 11 May 2009, was set to run until 30 May 2010 and included a base salary and performance-based bonuses. The club terminated the contract on 25 July 2009, citing just cause due to alleged breaches of contract and internal regulations, particularly following the team's loss in a European League qualification match. Middendorp contested the termination, arguing it was unjustified, and filed a claim with FIFA seeking unpaid salaries, bonuses, and tax reimbursements. The case was later brought before the Court of Arbitration for Sport (CAS) after the club appealed FIFA's decision, which had ruled in Middendorp's favor.
The CAS addressed several key legal issues. It confirmed that FIFA's Regulations on the Status and Transfer of Players (RSTP) apply to coaches in certain provisions, giving FIFA's Players' Status Committee (PSC) jurisdiction over such disputes unless an independent arbitration tribunal is specified in the contract. The CAS also ruled that poor sporting results alone do not constitute just cause for termination and clarified that Article 17 of the RSTP, which governs player contracts, does not extend to coaches. Under Swiss law, which governed the contract, termination without just cause entitles the employee to compensation equivalent to what they would have earned had the contract been fulfilled, minus any mitigated earnings. The burden of proof for damages lies with the claimant.
The CAS found that the club failed to demonstrate just cause for termination, as it could not provide sufficient evidence of Middendorp's breach of contract or internal regulations. The Panel upheld FIFA's decision, awarding Middendorp compensation for the remaining contract value, adjusted for earnings from his subsequent employment with another club. The compensation was calculated as EUR 200,000 (10 months at EUR 20,000 net per month), minus EUR 43,963.27 earned post-termination, resulting in a net award of EUR 156,036. The Panel also affirmed the 5% annual interest on the amount from 24 January 2011, as per Swiss law. The CAS dismissed the club's appeal, reinforcing the importance of contractual adherence and procedural fairness in employment disputes within football. The case underscores the limited grounds for unilateral termination and the role of FIFA and CAS in resolving such disputes when no national arbitration bodies exist.