The case involves a dispute between FC Seoul and Newcastle Jets FC over training compensation for a player transfer in 2008. FC Seoul claimed USD 200,000 from Newcastle Jets, which initially agreed to pay by December 2009 but failed to do so. FC Seoul filed a claim with FIFA's Dispute Resolution Chamber (DRC) in March 2010, but FIFA rejected it, citing a two-year limitation period that had elapsed since the transfer. FC Seoul argued the period should restart from the agreed payment deadline in December 2009. The FIFA DRC deemed the claim inadmissible in April 2012, prompting FC Seoul to appeal to the Court of Arbitration for Sport (CAS). The CAS examined jurisdictional issues, the interruption of the limitation period, and the standing of the parties. It upheld FIFA's autonomy but noted the limitation period could be interrupted if parties agreed on a new payment schedule. The case was referred back to the FIFA DRC for further examination of standing and the merits.
The dispute also highlighted the legal distinction between the original Newcastle Jets (Old Club) and the new entity (New Club) that took over in 2010. The Football Federation Australia (FFA) confirmed the New Club had no connection to the Old Club's liabilities. FC Seoul argued that Newcastle Jets' acknowledgment of the debt in June 2009 interrupted the limitation period under Swiss law, resetting the deadline to June 2011. Newcastle Jets contended the claim was time-barred under FIFA regulations and that the New Club was not liable. The CAS Sole Arbitrator ruled that Swiss law could subsidiarily apply due to gaps in FIFA's regulations, validating the interruption of the limitation period. The claim filed in March 2010 was thus deemed admissible.
The Arbitrator overturned the FIFA DRC's decision, confirming FC Seoul's entitlement to USD 200,000 plus 5% annual interest from December 2009. However, the question of whether the New Club could be held liable was referred back to FIFA for further consideration, given its broader implications for licensing systems in football. The case underscores the interplay between FIFA regulations and Swiss law, the importance of good faith in contractual relations, and the procedural complexities in sports disputes. The final decision partially upheld FC Seoul's appeal while remitting the standing issue to FIFA.