The case involves a dispute between Zamalek Sporting Club (Zamalek SC) and professional footballer Manuel Agogo, adjudicated by the Court of Arbitration for Sport (CAS). The conflict arose from the termination of Agogo's employment contract, with Zamalek SC alleging unjust termination and Agogo claiming just cause due to unpaid salaries and contractual breaches. The CAS panel, comprising Mark Hovell, Michael Gerlinger, and Christian Duve, issued its award on 31 October 2014, addressing key issues such as the admissibility of the appeal, the definition of just cause for termination, late payments by the employer, and compensation calculations under Article 17 of the FIFA Regulations on the Status and Transfer of Players (RSTP).
The panel ruled that the appeal was admissible despite initial procedural issues, emphasizing that non-payment of advance costs does not automatically render an appeal inadmissible. On the merits, the panel examined whether Agogo had just cause to terminate the contract, referencing the FIFA Commentary and Swiss law, which allow termination for persistent or cumulative breaches that make contract continuation unreasonable. The panel found that Zamalek SC's failure to pay Agogo's January 2009 salary installment, along with other unpaid allowances and unjustified deductions, constituted significant breaches. Agogo had repeatedly complained to the club and the Egyptian Football Association (EFA) and sent a final warning letter on 28 March 2009, giving Zamalek SC three days to rectify the issues. The club's lack of response justified Agogo's termination on 1 April 2009.
The panel also addressed compensation under Article 17 RSTP, which aims to reinforce contractual stability in football. It calculated damages based on the principle of positive interest, considering Agogo's unpaid salaries, housing and motor allowances, and his subsequent earnings with another club, Apollon. The panel awarded Agogo EUR 152,799 and USD 30,000 in arrears, plus 5% annual interest on specific amounts from their due dates. For objective damages, Agogo received EUR 654,736 and USD 66,000, with 5% interest from the award date. The panel deducted EUR 240,000 from the compensation, representing Agogo's earnings with Apollon, to avoid double recovery.
The case highlights the complexities of employment disputes in professional sports, emphasizing the importance of contractual adherence and timely remedies. The CAS panel's decision balanced legal principles with the unique dynamics of football, ensuring fairness while deterring unilateral breaches. The ruling underscores the role of CAS in resolving such conflicts and the need for clear contractual terms to prevent disputes. The panel's thorough analysis of the facts, applicable laws, and prior jurisprudence resulted in a comprehensive and equitable resolution. The award partially upheld Zamalek SC's appeal, replacing the FIFA decision with the CAS ruling, and dismissed all other claims, concluding the matter.