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2014 Football Contractual litigations Partially Upheld English Appeal Procedure

Parties & Representatives

Appellant Representative: Lucas Ferrer; Alejandro Pascual
Respondent: Marko Ljubinkovic
Respondent Representative: Gianpaolo Monteneri; Anna Smirnova

Arbitrators

President: Lars Halgreen

Decision Information

Decision Date: February 17, 2015

Case Summary

The case involves a dispute between Changchun Yatai Football Club and professional footballer Marko Ljubinkovic regarding the termination of his employment contract, adjudicated by the Court of Arbitration for Sport (CAS) in a ruling issued on 17 February 2015. The central issues revolved around the player's physical condition, the interpretation of contractual silence under the principle of good faith, the burden of proof, and whether the club's actions constituted just cause for termination under FIFA regulations. The panel emphasized that maintaining good physical condition is a fundamental obligation for a professional footballer, and clubs must provide appropriate training and medical facilities to support this. The principle of good faith was applied to interpret the silence of one party, ensuring reasonable understanding based on the circumstances. The burden of proof was clarified, requiring parties to substantiate their claims as outlined in FIFA's procedural rules.

The factual background revealed that Ljubinkovic signed a two-season contract with Changchun Yatai in February 2012, valid until the end of the 2013 Chinese Super League. The contract stipulated the player's obligations, including maintaining top physical condition and participating in team activities, while the club was required to provide medical treatment and training facilities. Disputes arose when the club deregistered the player and denied him training, leading to his unilateral termination of the contract. The player had received partial payments, including a signing fee and salaries, and participated in several matches before the dispute escalated. On 13 July 2012, the player was informed by the head coach that the club intended to bring in a new player for his position, and he would not play the next scheduled match. He was excluded from training with the first team and denied access to medical facilities, despite being fit and having recently performed well in a match. The player felt the club had lost interest in him and ignored his requests for dialogue, leaving him to train alone until 6 August 2012. On 7 August 2012, he terminated his contract, citing the club's breach for failing to provide adequate training conditions.

The club challenged the player's termination, arguing that he had no just cause to terminate his contract and that his absence from training sessions violated the employment contract. They claimed the contract allowed for his relegation to the reserve team with adjusted salary and benefits, and that the player had accepted this arrangement. The club also asserted that the player was provided adequate training conditions and medical care, and his absence from training sessions violated the contract, giving the club grounds for termination. The player, however, maintained that the club breached the contract by denying him proper training and medical support, justifying his unilateral termination. The CAS panel found that the club's unilateral decision to deregister the player and deny him access to medical and training facilities constituted a breach of contractual obligations. The panel concluded that the player had just cause to terminate his employment contract under Article 17 of the FIFA Regulations on the Status and Transfer of Players (RSTP). The club's claims that the player breached his contract by not attending training sessions were dismissed, along with its request for financial damages.

Regarding financial compensation, the panel ruled that the player was entitled to unpaid salary for July 2012 (€20,000) plus 5% annual interest from September 2012 until payment. Additionally, the panel awarded compensation for the remaining contract period (August 2012 to November 2013), initially set at €350,000 but reduced by €25,500 to account for the player's earnings from subsequent employment, resulting in a final amount of €324,500. This sum also carries 5% annual interest from August 2013 until payment. The panel partially upheld the club's appeal, adjusting the compensation amount minimally while otherwise confirming FIFA's earlier decision. The CAS ruled that Changchun Yatai must pay Ljubinkovic €20,000 plus interest for unpaid salary and €324,500 plus interest for breach of contract, dismissing all other claims. The decision reinforces the principle that clubs must uphold contractual obligations, including providing necessary facilities, and that players may terminate contracts with just cause if these obligations are violated. The case serves as a precedent for similar disputes, emphasizing the balance of rights and responsibilities between clubs and players under FIFA regulations.

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