The case involves a dispute between Club Eskisehirspor and professional football player Kris Boyd, adjudicated by the Court of Arbitration for Sport (CAS) in 2013. The dispute arose from the termination of Boyd's employment contract with the club due to the club's failure to meet payment obligations. Boyd had signed a contract with Eskisehirspor in July 2011, valid until May 2014, which included specific salary payments and bonuses. The contract allowed Boyd to terminate unilaterally with just cause if the club failed to pay three monthly salaries (€240,000). After the club missed payments, Boyd issued a formal notice in November 2011, demanding payment within 15 days. When the club failed to comply, Boyd terminated the contract in December 2011 and joined Portland Timbers in January 2012.
Boyd filed a claim with FIFA’s Dispute Resolution Chamber (DRC), seeking €2.8 million in compensation for breach of contract. The DRC ruled partially in Boyd’s favor, ordering the club to pay €320,000 in outstanding remuneration and €2.48 million as compensation for breach, plus interest. The club appealed to CAS, arguing against the compensation calculation, particularly the lack of deduction for Boyd's earnings from his new contract with Portland Timbers. The CAS panel, composed of arbitrators from the Netherlands, Israel, and the UK, examined the case under Article 17 of FIFA’s Regulations on the Status and Transfer of Players (RSTP), which governs compensation for breach of contract. The panel noted that Article 17 applies not only to terminations without just cause but also to cases where a breach has occurred.
The contract between Boyd and the club stipulated that, in case of termination with just cause due to non-payment, the club would owe Boyd all pending monetary obligations until the contract’s original end date (May 2014). The CAS upheld the DRC’s decision, emphasizing that the contractual terms took precedence over subsidiary criteria in Article 17. The club had already paid Boyd the €320,000 in outstanding salaries before the CAS hearing. The panel confirmed the DRC’s award of €2.48 million as compensation, aligning with the remaining value of the contract. The CAS also affirmed its jurisdiction under FIFA’s statutes and the CAS Code, as the club had exhausted prior legal remedies.
The club argued that Boyd's earnings from Portland Timbers should offset the compensation, but the panel rejected this, stating the contract’s terms were clear and did not allow for deductions. The panel also dismissed the club's claim that the compensation was excessive, noting the club's breach was unilateral and the player's limited participation was not his fault. The panel referenced a buy-out clause in the contract, which allowed Boyd to terminate for €2 million without reduction, concluding the compensation amount was reasonable. The final decision required the club to pay Boyd €2.48 million plus 5% annual interest, starting 30 days after the decision date, and 5% interest on €80,000 for late salary payments from 2011 until September 2012. The CAS dismissed the club's appeal and upheld the original decision, reinforcing the enforceability of contractual agreements and the consequences of unilateral breaches by clubs. The case underscores the importance of clubs adhering to financial obligations to avoid costly legal consequences.