The case before the Court of Arbitration for Sport (CAS) involved a dispute between FC Vojvodina and professional football player Ralph Serginho Greene, centering on unpaid salaries and the termination of Greene's contract. The contract, signed in July 2012, was set to run until July 2014 and included a base salary and performance-based bonuses. FC Vojvodina failed to pay Greene's salaries for several months, leading to a formal demand for payment in July 2013. After repeated non-payment, Greene terminated the contract with just cause in August 2013, claiming unpaid salaries totaling EUR 39,674.66 and seeking compensation for the residual value of the contract, EUR 135,000.
Greene lodged a claim with FIFA in October 2013, requesting EUR 165,090.98 plus interest. FIFA's Dispute Resolution Chamber (DRC) partially accepted the claim in February 2014, ordering FC Vojvodina to pay the outstanding remuneration with interest and additional compensation for breach of contract. Dissatisfied, the club appealed to CAS, seeking a reduction in the compensation amount. The CAS proceedings involved written submissions and a hearing in November 2014, where both parties presented their arguments.
The club argued that Greene had not mitigated his losses adequately after the contract termination, claiming his earnings at his new club, Larnaca, were higher than declared. Greene countered that his reduced salary at Larnaca reflected the limited opportunities available due to the timing of his contract termination and the constraints of the transfer market. The Panel examined the validity of a settlement agreement between Greene and Larnaca, dismissing the club's allegations that it concealed additional payments. The Panel also considered whether bonuses in Greene's new contract should count toward mitigation, ruling that appearance-based bonuses were effectively part of his salary and should be included.
The Panel upheld established jurisprudence requiring players to mitigate damages after a club's breach of contract, calculating compensation as the amount the player would have earned under the original contract minus earnings from a new club. The Panel found Greene had mitigated his losses reasonably under the circumstances and rejected the club's claims that his actions contributed to the termination. The final award modified the DRC's decision, ordering FC Vojvodina to pay Greene EUR 104,416.63 as compensation for the breach of contract, plus interest, and the outstanding remuneration of EUR 39,674.31 with interest. All other claims were dismissed.
The case highlights the complexities of contract disputes in professional football, particularly regarding unpaid salaries, contract termination, and the duty to mitigate damages. It underscores the importance of contractual fidelity and the role of arbitration bodies like CAS in resolving such conflicts. The decision reinforces the principle that clubs must honor their financial obligations while players must take reasonable steps to minimize losses after a breach. The Panel's ruling balanced these considerations, providing a fair resolution to the dispute.