The case involves a dispute between Avaí FC, FIFA, Bursaspor Club Association, and the player Marcelo Rodrigues, concerning the termination of an employment contract without just cause. The Court of Arbitration for Sport (CAS) reviewed the matter de novo, reassessing both facts and legal issues independently of prior proceedings. The core issue revolved around Article 17.2 of FIFA's Regulations on the Status and Transfer of Players, which imposes joint liability for compensation on a new club when a player breaches a prior contract, regardless of the new club's involvement or good faith. The dispute originated when Marcelo Rodrigues left Bursaspor in December 2008 without justification, prompting Bursaspor to file a claim with FIFA seeking compensation and sporting sanctions. FIFA's Dispute Resolution Chamber (DRC) ruled in favor of Bursaspor, ordering Rodrigues to pay $150,000 in compensation, with Avaí FC jointly liable as the first club to register the player after his departure.
Avaí FC appealed the DRC's decision to CAS, arguing procedural defects and unfair liability, claiming it was not properly notified and had no involvement in the breach. Avaí also contested the compensation amount, asserting it was disproportionate and exceeded the value of the new contract. FIFA and Bursaspor maintained that the DRC correctly applied the rules, emphasizing Avaí FC's joint liability under Article 17.2 as the first club to register the player post-breach. The CAS panel rejected Avaí FC's arguments, confirming its status as the "new club" under Article 17.2, as it signed the player before his original contract with Bursaspor expired. The panel also upheld the DRC's compensation calculation, considering factors like the residual contract value, the player's unemployment period, and his subsequent lower salary.
However, the CAS panel partially upheld Avaí FC's appeal regarding the compensation amount, reducing it to $37,500 based on non-amortized acquisition costs and the specificity of sport. The panel emphasized that Swiss law allows discretionary assessment of damages when exact amounts cannot be determined. The final ruling ordered Rodrigues to pay the reduced amount, with Avaí FC jointly liable, and confirmed all other aspects of the DRC's decision, including interest calculations. The case underscores the strict liability imposed on clubs under FIFA's regulations when signing players who have breached prior contracts, ensuring contractual stability in football. The CAS decision reinforces the principle that clubs benefiting from early contract terminations must bear financial consequences, regardless of their involvement in the breach. The ruling highlights the complexities of football transfer disputes and the role of CAS in resolving such conflicts while balancing legal principles with the unique circumstances of each case.