The case involves a legal dispute between Genoa Cricket and Football Club S.p.A. (Genoa) and Club Athlético Boca Juniors (Boca) concerning financial obligations tied to a player transfer agreement signed in 2009. Genoa acquired the player from Boca for €2,510,000, payable in installments, with a sell-on clause stipulating that if the player was later transferred for more than €4,500,000, Genoa would pay Boca 10% of the amount exceeding that threshold. Genoa failed to pay the final installment of €500,000 due in December 2011, prompting Boca to file a claim with FIFA in March 2012. When the player was transferred to FC Internazionale Milano (Inter) in June 2012, Boca amended its claim to include the unpaid sell-on fee. In April 2013, FIFA ruled in favor of Boca, ordering Genoa to pay €500,000 with 0.2% annual interest and €650,000 as the sell-on fee with 5% annual interest, plus procedural costs.
Genoa appealed the FIFA decision to the Court of Arbitration for Sport (CAS) in October 2013, contesting the sell-on fee and requesting a review of the ruling. The CAS proceedings clarified that participation in FIFA proceedings was not mandatory for appealing to CAS and addressed the timing and proportionality of sell-on fee payments. Genoa argued that the transfer fee to Inter was €10 million, paid in installments over three seasons, and only €4.9 million had been received by the time of the appeal, meaning the sell-on fee was not yet fully due. Boca maintained its claim, relying on the FIFA decision and asserting that Genoa had failed to comply with the agreement.
The CAS Sole Arbitrator, applying FIFA regulations and Swiss law, determined the sell-on fee amounted to €550,000 (10% of €5.5 million above the threshold). The ruling specified that the fee should be paid proportionally as Genoa received installments from Inter. By the award date, Genoa had received €7 million, requiring an immediate payment of €250,000 to Boca, with the remaining €300,000 to be paid in installments corresponding to future receipts. The Arbitrator upheld the 5% annual interest on overdue payments, calculated from five days after each due date until actual payment.
In its final ruling, the CAS partially upheld Genoa’s appeal, amending the FIFA decision. Genoa was ordered to pay Boca €500,000 plus 0.2% annual interest for the unpaid transfer fee installment and the €550,000 sell-on fee in specified installments, with 5% interest on delayed payments for installments received between August 2013 and March 2014. The ruling ensured compliance with the transfer agreement and fair compensation for Boca, highlighting the complexities of football transfer disputes and the importance of contractual adherence. The case underscores the role of CAS in resolving such disputes and the principles governing sell-on fees and installment payments in player transfers.