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2011 Football Contractual litigations Dismissed English Appeal Procedure

Parties & Representatives

Appellant: CSKA Sofia
Appellant Representative: Boris E. Kolev
Respondent: Vanio Kostov
Respondent Representative: Domingos Silva Alves

Arbitrators

President: Chris Georghiades

Decision Information

Decision Date: October 3, 2012

Case Summary

The case revolves around a dispute between PFC CSKA Sofia, a Bulgarian football club, and Vanio Kostov, a licensed player’s agent, concerning a commission payment for the transfer of a Brazilian player. On July 16, 2007, the parties entered into an agreement stipulating that Kostov would receive a €50,000 commission if the player signed with CSKA Sofia, payable within three months of receiving the International Transfer Certificate. CSKA Sofia allegedly paid only €20,000, prompting Kostov to file a claim with FIFA. On August 8, 2011, FIFA’s Player’s Status Committee ruled in Kostov’s favor, ordering CSKA Sofia to pay the remaining €30,000 plus interest and procedural costs. CSKA Sofia appealed to the Court of Arbitration for Sport (CAS), arguing the agreement lacked consideration and that Kostov had not fulfilled his obligations. They also denied making the partial payment and claimed Kostov violated FIFA regulations by allegedly representing both the player and the club. Kostov countered that the agreement was valid, as he acted solely for CSKA Sofia, and provided evidence, including an invoice and bank statement, to substantiate the €20,000 payment. The case was assigned to a sole arbitrator, Chris Georghiades, who proceeded based on written submissions without a hearing. The arbitrator examined the validity of the agreement, concluding that the promise to pay the commission was enforceable as the transfer was successfully completed, constituting valid consideration. The arbitrator also dismissed claims of dual representation, noting that the club had agreed to cover the agent’s fees. Evidence showed the transfer contract was finalized on July 23, 2007, not July 11 as claimed by CSKA Sofia, and the agreement was deemed compliant with FIFA regulations. The arbitrator ruled in favor of Kostov, upholding the FIFA decision and confirming the validity of the agreement and the partial payment. The case underscores the enforceability of contractual terms in sports transactions and highlights procedural complexities in arbitration, including evidentiary challenges and jurisdictional considerations. The final award reinforced the binding nature of such agreements, dismissing CSKA Sofia’s appeal and ending the dispute.

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