The case involves a dispute between FC Dynamo Kyiv, the player Gerson Alencar de Lima Júnior, and SC Braga, adjudicated by the Court of Arbitration for Sport (CAS). The dispute centered on the player's unilateral termination of his employment contract with Dynamo Kyiv and subsequent signing with SC Braga. The CAS panel ruled that the player did not have just cause to terminate his contract, as the club had largely fulfilled its obligations, with only minor payment delays that were rectified. The player failed to demonstrate substantial breaches or provide prior warnings, as required under FIFA regulations. The panel emphasized procedural fairness, noting that new evidence or relief requests must be justified by exceptional circumstances and cannot be introduced late without valid reason.
The panel addressed compensation for early termination, ruling that Dynamo Kyiv was entitled to compensation for unamortized costs related to the player's transfer, calculated at EUR 1,342,128.60, minus unpaid wages of EUR 42,902.90, resulting in a final amount of EUR 1,299,225.70 with 5% annual interest from the termination date. SC Braga was held jointly liable for this compensation under FIFA regulations, which presume a new club's involvement in inducing a breach unless proven otherwise. The panel rejected Dynamo Kyiv's claim for lost earnings from a potential transfer fee, limiting compensation to the fixed EUR 750,000 SC Braga had initially offered, as the additional EUR 1.5 million was contingent on uncertain conditions.
The panel also examined the validity of the employment contract, overturning the FIFA Dispute Resolution Chamber's (DRC) finding that it lacked financial obligations. The CAS ruled the contract was valid, as it explicitly outlined the club's duty to pay salaries, and both parties had acted accordingly. The player's claims of unpaid wages and accommodation allowances were partially dismissed due to insufficient evidence, though the panel acknowledged the club's failure to properly notify him of disciplinary penalties.
The case underscores the importance of contractual stability in football and the consequences of unjustified terminations. The panel's decision reinforced the principle of pacta sunt servanda (agreements must be kept) and highlighted the need for clear contractual terms, timely payments, and proper disciplinary procedures. The ruling also clarified the financial accountability of players and clubs in transfer disputes, ensuring injured parties are compensated while discouraging breaches. Ultimately, the CAS partially upheld Dynamo Kyiv's appeal, ordering the player and SC Braga to pay the specified compensation with interest, and reaffirmed the legal and financial responsibilities inherent in professional football contracts.