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2014 Football Contractual litigations Dismissed English Appeal Procedure

Arbitrators

Decision Information

Decision Date: June 5, 2015

Case Summary

The Court of Arbitration for Sport (CAS) issued an award on June 5, 2015, in the dispute between Club Promotora del Pachuca S.A. de C.V. and Facundo Gabriel Coria, along with FIFA. The case centered on the unilateral termination of the player's employment contract, which he claimed was justified due to the club's breaches. The Panel, composed of Juan Pablo Arriagada Aljaro, Prof. Martin Schimke, and Prof. Gustavo Abreu, ruled that the player had just cause to terminate the contract. The club had failed to register the player for the first team, fielded five foreign players in the first match of the season, and publicly criticized his performance, creating an untenable working relationship. These actions deprived the player of opportunities to showcase his talent and advance his career, constituting a breach of the club's obligations under Swiss law, which protects an employee's professional development.

The club argued that the player's termination was unjustified, claiming he had not raised complaints beforehand and had acted in bad faith by quickly signing with another club. However, the Panel found no evidence of premeditation, noting the player accepted a significantly lower salary to secure a first-team position elsewhere. The club also contended it had until September 5, 2011, to register the player, but the Panel ruled this deadline was irrelevant as the club had already filled its foreign player quota. The player's termination notice, sent within days of the club's exclusionary actions, was deemed timely.

The Panel upheld the FIFA Dispute Resolution Chamber's (DRC) decision, which awarded the player $22,800 in unpaid salary and $352,700 as compensation for breach of contract, plus interest. The club's appeal for sporting sanctions and additional compensation was dismissed. The ruling reinforced the principle that contractual stability in football must balance with players' rights to fair treatment and career opportunities. It clarified that employers must uphold their obligations, and players may terminate contracts without prior warning in cases of severe breach. The CAS decision underscored the importance of good faith in employment relationships and set a precedent for similar disputes in professional football. The club's appeal was dismissed in its entirety, and the DRC's award was confirmed without modification.

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