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2014 Football Transfer Partially Upheld English Appeal Procedure

Parties & Representatives

Appellant: US Citta di Palermo
Appellant Representative: Paolo Lombardi

Arbitrators

President: Petros C. Mavroidis

Decision Information

Decision Date: January 19, 2015

Case Summary

The Court of Arbitration for Sport (CAS) issued an award on January 19, 2015, resolving a dispute between US Città di Palermo and Club Atlético Talleres de Córdoba concerning training compensation for an Argentinean player. The case revolved around whether Talleres was entitled to compensation for training the player before his transfer to Palermo, given conflicting interpretations of his prior loan to Atlético Huracán. The CAS panel, composed of Prof. Petros Mavroidis, Mr. José Juan Pintó, and Mr. Hernán Jorge Ferrari, examined FIFA's Regulations on the Status and Transfer of Players (RSTP), which govern training compensation. The panel clarified that training compensation is owed to the club that trained the player during the segment immediately preceding a permanent transfer, with loans not interrupting this entitlement.

Palermo argued the player's move to Huracán was a permanent transfer, thus nullifying Talleres' claim, but failed to provide sufficient evidence, such as a transfer fee or labor agreement. The panel found the transfer was a loan, as indicated by the loan agreement's terms and the absence of a return clause. The panel also dismissed Palermo's reliance on the "Panionios Case," which had been overruled, and endorsed the FIFA Dispute Resolution Chamber's (DRC) stance that loans do not interrupt training compensation claims. The DRC had initially ruled in favor of Talleres, awarding €298,156 plus interest, a decision the CAS upheld.

The CAS adjusted procedural costs, reducing Palermo's payment to FIFA from CHF 15,000 to CHF 3,000 due to the DRC's excessive delay in rendering its decision, while maintaining the CHF 5,000 payment to Talleres. The final award emphasized the importance of clear evidence in transfer disputes and reinforced the segmentation principle in training compensation, ensuring clubs are fairly compensated for youth development. The ruling underscores the need for accurate documentation and adherence to FIFA regulations in resolving such disputes.

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