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2014 Football Transfer Upheld FR Appeal Procedure

Parties & Representatives

Appellant: KRC Genk
Appellant Representative: Gunter Jacob; Laurent Denis
Respondent: LOSC Lille Métropole
Respondent Representative: Julien Mordacq

Arbitrators

President: Petros C. Mavroidis

Decision Information

Decision Date: June 5, 2015

Case Summary

The Court of Arbitration for Sport (CAS) ruled on a dispute between KRC Genk and LOSC Lille Métropole concerning training compensation for a young footballer, D., who was trained by Genk from 2006 to 2010 before signing with Lille in 2011. Genk sought €300,000 in compensation, while Lille argued either no payment was due or it should not exceed €38,301. The FIFA Dispute Resolution Chamber initially rejected Genk’s claim, prompting an appeal to the CAS. The CAS addressed two main legal issues: whether national law should influence the dispute under FIFA regulations and whether Genk was entitled to compensation despite not offering D. a contract due to legal restrictions. The tribunal ruled that national law must be considered when materially relevant, aligning with FIFA’s procedural rules. It also found that Genk demonstrated genuine interest in retaining D., evidenced by evaluations and national team selections, justifying compensation even without a formal contract offer. The CAS emphasized the need to balance FIFA regulations with national legal frameworks, particularly concerning minors, as Belgian law prohibited professional contracts for players under 16. The panel determined the compensation should be calculated based on the average costs of the involved clubs, setting it at €75,000 per training season for four seasons, totaling €300,000, plus 5% annual interest from September 4, 2011. The CAS overturned FIFA’s initial decision, ordering Lille to pay the compensation and dismissing other claims. The ruling clarified the interplay between FIFA rules and national law, ensuring fair compensation for clubs developing young talent while adhering to legal constraints. The decision underscores the importance of aligning sports regulations with labor laws, particularly in cases involving underage athletes, and provides guidance for resolving similar disputes in the future.

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