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2014 Football Transfer Dismissed English Appeal Procedure

Parties & Representatives

Appellant: Galatasaray SK
Appellant Representative: Didem Sunna
Respondent: Olympique Lyonnais
Respondent Representative: Gaël Bousquet

Arbitrators

President: Lars Hilliger

Decision Information

Decision Date: August 25, 2014

Case Summary

The case involves a dispute between Club Galatasaray A.S. and Olympique Lyonnais over the interpretation of a transfer agreement concerning a player, signed on July 1, 2009. The agreement included a clause requiring Galatasaray to pay Olympique Lyonnais an additional €500,000 for each qualification to the UEFA Champions League group stage during the 2010–2014 seasons, with a maximum of €1,500,000 and a minimum of €1,000,000. The clause explicitly stated that this payment was due "whether the player is part of the team roster or not." The dispute arose when Galatasaray qualified for the 2012/2013 UEFA Champions League group stage, and Olympique Lyonnais demanded payment of €500,000. Galatasaray refused, arguing that the player had left the club by mutual consent in July 2010 and was no longer registered with them, thus not contributing to the qualification. Olympique Lyonnais contended that the clause applied regardless of the player's contractual status, as the agreement did not condition payment on the player's continued registration.

The case was initially brought before FIFA's Players’ Status Committee, which ruled in favor of Olympique Lyonnais, interpreting the clause as encompassing all scenarios, including the player's departure. Galatasaray appealed to the Court of Arbitration for Sport (CAS), which upheld the decision, stating that the clause's wording was unambiguous and did not require the player to remain registered with the club for the payment obligation to apply. The CAS emphasized that the language covered all situations, including injuries or transfers, and thus Galatasaray was obligated to pay the additional compensation as stipulated in the agreement. The ruling reinforced the principle that contractual terms must be interpreted based on their plain meaning unless evidence suggests otherwise.

Galatasaray further argued that the clause only applied if the player was still registered with them, even if not playing, and not if the player had left the club entirely. Olympique Lyonnais countered that the wording was clear and reflected the parties' intent to disconnect payment from the player's presence. The CAS panel reviewed the agreement and found no dispute over its terms, concluding that the condition for payment was solely Galatasaray's qualification for the Champions League group stage, with no requirement for the player to still be registered. The panel dismissed Galatasaray's interpretation as contrary to the agreement's plain meaning and upheld the earlier decision, including the payment of interest, damages, and costs.

The final decision ordered Galatasaray to pay Olympique Lyonnais €1,000,000 with an annual interest rate of 5% starting from November 28, 2012, until the payment was completed. The appeal filed by Galatasaray was dismissed, and all other claims for relief were rejected. The ruling affirmed the initial decision and settled the financial obligations between the parties as per their agreement, underscoring the importance of clear contractual language in sports transfers and the enforceability of agreed-upon terms.

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