The Court of Arbitration for Sport (CAS) issued an award on August 22, 2014, resolving a dispute between KSC Lokeren, Omer Golan, and Maccabi Petach Tikva FC. The case centered on the validity of a unilateral option clause in Golan's employment contract with Lokeren, which allowed the club to extend the contract for two additional seasons. The panel, composed of Stuart McInnes, Olivier Carrard, and Manfred Nan, addressed several legal issues, including the enforceability of unilateral options, the responsibilities of parties signing contracts in foreign languages, and the principle of contractual stability in football.
The panel ruled that unilateral options to extend employment contracts are not inherently invalid under FIFA’s Regulations on the Status and Transfer of Players (RSTP) or global labor law principles. However, such clauses must be examined case by case for clarity and fairness. The panel emphasized that signing a contract in a foreign language does not absolve a party of responsibility for its terms, rejecting Golan’s claim that he did not understand the French and Dutch contract. The panel also assessed whether Lokeren’s conduct justified Golan’s termination of the contract for just cause, concluding that the club’s actions, while questionable, did not meet the threshold for just cause.
The dispute originated from a 2007 transfer agreement between Lokeren and Maccabi, which included an employment contract with a unilateral extension option. Lokeren exercised this option in March 2010, but Golan contested its validity, arguing that the clause was unfair and that Lokeren had breached the contract by excluding him from first-team activities. Golan subsequently signed with Maccabi in August 2010, leading Lokeren to file a claim with FIFA’s Dispute Resolution Chamber (DRC) seeking over €1.1 million in compensation. The DRC ruled in favor of Golan, finding the extension invalid due to Golan’s refusal and Lokeren’s bad faith. Both parties appealed to CAS.
The CAS panel upheld the validity of the unilateral option, noting that it was clearly drafted and complied with Swiss law and the Belgian Collective Bargaining Agreement. The panel found that Golan’s subsequent actions, such as applying for a work permit extension, indicated his acceptance of the extended contract. However, the panel acknowledged Lokeren’s conduct as a mitigating factor in determining compensation. While the panel ruled that Golan breached the contract by joining Maccabi without just cause, it awarded Lokeren only €16,500 in compensation, equivalent to one month’s salary, plus 5% annual interest. The panel dismissed Lokeren’s claim for additional damages, citing lack of evidence and the club’s failure to mitigate losses.
The decision reinforced the principle of contractual stability in football while ensuring fairness. It clarified that unilateral options can be enforceable if properly drafted and exercised, and it underscored the responsibilities of parties in international contracts. The ruling also highlighted the role of the specificity of sport in balancing the interests of clubs and players. The CAS partially upheld Lokeren’s appeal, dismissed Golan and Maccabi’s appeal, and set aside the DRC’s decision, concluding the dispute with a balanced and reasoned award.