The case involves a dispute between U.C. Sampdoria and Club San Lorenzo de Almagro, with FIFA as a secondary respondent, regarding unpaid transfer fees for a player. The dispute originated from a 2009 contract where San Lorenzo agreed to pay €1,400,000 in installments, with a €600,000 penalty for late payments. Only the first installment of €200,000 was paid, leading Sampdoria to file a claim with FIFA in 2010. FIFA refused to handle the claim, citing San Lorenzo's ongoing bankruptcy proceedings in Argentina since 2002 and advised Sampdoria to pursue the matter in national courts. Sampdoria appealed to the Court of Arbitration for Sport (CAS), arguing FIFA's refusal violated the contract's arbitration clause, which mandated dispute resolution through FIFA or CAS.
The CAS panel ruled that FIFA's refusal letter constituted a formal, appealable decision as it materially affected Sampdoria's legal position. The panel confirmed CAS's jurisdiction over final FIFA decisions, rejecting the notion that cases must be referred back to FIFA before CAS intervention. It found no evidence of a longstanding FIFA practice to discontinue proceedings involving bankrupt clubs, dismissing San Lorenzo's argument. The panel clarified that FIFA could recognize debts but not enforce them, as enforcement falls under disciplinary proceedings. It upheld the penalty clause, stating failure to meet contractual obligations triggered an autonomous penalty. The panel sided with Sampdoria, ruling FIFA's refusal violated the contract's arbitration clause and its own regulations.
FIFA's refusal was based on an alleged "general rule" against handling cases involving clubs in bankruptcy, but the panel found no legal basis for this claim. Sampdoria argued San Lorenzo's financial restructuring, ongoing since 2002, did not preclude contractual disputes, especially given the club's active market participation post-2009. San Lorenzo acknowledged the debt but claimed inability to pay until bankruptcy proceedings concluded, disputing the penalty clause and interest. FIFA supported dismissing the appeal, arguing its letter was not a final decision but a procedural step respecting bankruptcy proceedings.
The panel determined FIFA's letter was a final, binding decision under Swiss law and CAS precedents, as it left Sampdoria without recourse. It rejected FIFA's claim of a customary practice to discontinue proceedings during bankruptcy, finding no supporting evidence. The panel emphasized the distinction between debt recognition and enforcement, ruling FIFA could adjudicate claims without interfering with national insolvency proceedings. It upheld the penalty clause under Swiss law, interpreting the contract based on the parties' intentions and good faith. The panel ordered San Lorenzo to pay outstanding installments with 5% interest and the penalty, totaling €1.8 million, plus CHF 5,000 for FIFA fees.
The CAS decision underscores the importance of contractual arbitration clauses and FIFA's obligation to resolve disputes per its rules, even during bankruptcy proceedings. It reinforces CAS's role in reviewing FIFA's final decisions and ensures clubs can seek redress for unpaid fees through arbitration. The ruling clarifies that procedural irregularities at the initial stage can be remedied through CAS, highlighting the need for clear regulatory frameworks in sports governance. The case concluded with CAS setting aside FIFA's decision and ordering San Lorenzo to make specified payments to Sampdoria, finalizing the award on 8 February 2013.