The case involves a dispute between AS Denizlispor Kulübü Dernegi, a Turkish football club, and Wescley Pina Gonçalves, a Brazilian professional football player, adjudicated by the Court of Arbitration for Sport (CAS). The dispute arose from the termination of the player's contract by the club and subsequent claims for compensation. The player had signed an employment contract with the club on 30 December 2008, valid until 31 May 2011, which included monthly payments, accommodation, car insurance, and travel benefits. However, the club failed to pay the player's salaries for April and May 2009, as well as a lump sum due at the beginning of the 2009-2010 season. Additionally, the club withdrew the player's accommodation and car insurance and prevented him from training, leading the player to terminate the contract.
The CAS panel reviewed the decision of the FIFA Dispute Resolution Chamber (DRC) dated 15 June 2011, which had ruled in favor of the player. The DRC found the club's termination of the contract unjustified, as it failed to provide sufficient evidence of the player's misconduct. Instead, the player's termination was deemed valid due to the club's failure to pay salaries and its prevention of his participation in training. The DRC ordered the club to pay outstanding salaries of USD 85,733 and additional compensation of USD 300,000 for breach of contract, both with 5% annual interest until payment.
The club appealed the DRC's decision to CAS, arguing that its termination of the contract was justified due to the player's unauthorized absences from training. The player countered that he had permission for his absence and accused the club of breaching the contract by unpaid salaries and denying him training access. The CAS panel emphasized that only material breaches justify termination, requiring prior warnings and consideration of the breach's seriousness, frequency, and the breaching party's attitude. The panel referenced the Swiss Code of Obligations and FIFA guidelines, noting that unpaid salaries for over three months, coupled with additional detrimental actions by the club, constituted just cause for termination.
The CAS panel upheld the DRC's decision, concluding that the club breached its contractual obligations by preventing the player from attending training sessions and accessing facilities, along with unpaid salaries and the withdrawal of accommodation and car insurance. The panel found the club's termination unjustified and affirmed the compensation awarded by the DRC. The total remaining value of the contract was USD 366,267, from which the player's earnings from new contracts (USD 27,878) were deducted, resulting in the USD 300,000 compensation. The panel also confirmed the club's obligation to pay outstanding remuneration of USD 85,733.
The CAS dismissed the club's appeal, upholding the FIFA decision in its entirety. The ruling reinforced the importance of contractual obligations in football employment relationships and the consequences of failing to adhere to them. The case serves as a precedent for similar disputes, highlighting the need for clubs to fulfill their contractual commitments and the role of arbitral bodies in assessing just cause and compensation. The CAS award, issued on 28 November 2012, confirmed the original decision and dismissed all further claims.