The case involves a legal dispute between SC Corinthians Paulista and Panathinaikos FC over the interpretation of the term "net amount" in a transfer agreement for the player R. The central issue was whether "net amount" meant the exact sum to be received by Panathinaikos without deductions or if it allowed for taxes and other charges to be subtracted. The Court of Arbitration for Sport (CAS) ruled that "net amount" in football transfer agreements refers to the final amount the creditor receives without any deductions, meaning all taxes, expenses, and charges must be covered by the debtor in addition to the agreed sum. The dispute arose from a 2008 transfer agreement where Corinthians agreed to pay Panathinaikos a net amount of €1.3 million, plus €200,000 to the player. Corinthians argued it had paid €801,614.89, leaving a balance of €498,385.11, while Panathinaikos claimed only €679,805 had been paid, leaving €620,195 outstanding. The discrepancy stemmed from differing interpretations of whether taxes and bank charges should be deducted.
The CAS panel emphasized that the burden of proof lies with the party asserting a fact and reviewed correspondence showing Corinthians delayed payments due to financial difficulties. Panathinaikos sent reminders and eventually filed a claim with FIFA, which ruled in its favor on September 5, 2011, ordering Corinthians to pay €620,000 plus interest. Corinthians appealed to CAS, arguing that "net amount" should account for deductions like solidarity contributions and banking costs but not Brazilian withholding tax, which Panathinaikos could offset against Greek taxes. Panathinaikos countered that "net amount" unambiguously meant payment without deductions, citing precedent from a prior CAS case (CAS 2006/A/1018). The panel rejected Corinthians' arguments, noting no evidence supported the claim that Panathinaikos could offset Brazilian taxes under Greek law, especially as no double taxation treaty exists between Greece and Brazil.
The CAS panel upheld the FIFA decision, ruling that "net amount" means the creditor receives the exact agreed sum without deductions, with the debtor responsible for all additional costs. The panel dismissed Corinthians' appeal, confirming the original ruling and ordering Corinthians to pay the outstanding €620,195 without further deductions. The decision reinforces the principle that contractual terms like "net amount" are binding and must be honored as agreed, ensuring clarity and fairness in football transfers. The case highlights the importance of precise contractual language to avoid ambiguities and legal conflicts in international sports agreements. The panel also addressed procedural matters, confirming the appeal was filed within the required timeframe and that CAS had jurisdiction under FIFA statutes and Swiss law. All other requests from the parties were dismissed, finalizing the ruling. The outcome underscores established CAS jurisprudence on contractual interpretation and the burden of proof in disputes.