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2014 Football Contractual litigations Partially Upheld English Appeal Procedure

Parties & Representatives

Appellant Representative: Konstantinos Zemberis
Respondent: Ilie Dumitrescu
Respondent Representative: Gianpaolo Monteneri; Anna Smirnova

Arbitrators

President: Mark Hovell

Decision Information

Decision Date: July 10, 2015

Case Summary

The Court of Arbitration for Sport (CAS) resolved a contractual dispute between Panthrakikos Football Club and Ilie Dumitrescu, its former head coach, concerning the termination of his employment and related financial claims. The contract, signed for the 2009/10 and 2010/11 seasons, included clauses specifying compensation for early termination: €100,000 if the Club terminated without cause and €250,000 if the Coach resigned without cause. Disputes arose in August 2009 when the Club accused Dumitrescu of problematic behavior and alleged he abandoned his duties, leading to his termination with cause on August 29, 2009. The Club demanded €250,000 in compensation and a refund of an advance payment, while Dumitrescu claimed he was unlawfully dismissed and sought €110,000 in unpaid salary and damages.

The case was initially heard by FIFA’s Players’ Status Committee (PSC) in March 2013, which ruled partially in Dumitrescu’s favor, awarding him €10,000 in unpaid salary and €100,000 for breach of contract, plus interest. The Club appealed to CAS, arguing Dumitrescu had breached the contract first, justifying termination and entitling them to compensation. The CAS proceedings involved procedural delays, including disputes over advance costs and witness testimony. A hearing was held in March 2015, where conflicting testimonies emerged. The Club’s witnesses claimed Dumitrescu resigned voluntarily, while he maintained he was dismissed without cause. The Panel found the evidence unreliable due to the six-year gap and lack of corroboration, particularly from key figures like the Club’s president.

The Panel determined the Club’s termination was without just cause, as it failed to follow proper disciplinary procedures or substantiate allegations of misconduct. It upheld the FIFA PSC’s award of €100,000 to Dumitrescu for breach of contract, as he had not appealed this decision. However, it also addressed salary payments, ruling that the initial sums paid to Dumitrescu (€55,000) were salary advances, not a signing bonus, and that he had been overpaid by €16,250 for his three months of work. The Panel ordered him to repay this amount with 5% annual interest from October 2010, when the Club filed its counterclaim. The final decision partially accepted the Club’s appeal, adjusting the FIFA PSC’s ruling to include the repayment obligation while dismissing other claims.

The case underscores the complexities of contractual disputes in football, particularly regarding termination clauses, procedural fairness, and evidentiary challenges in arbitration. The CAS emphasized the importance of due process and the burden of proof in such disputes, ultimately balancing the financial claims of both parties while upholding the contractual terms agreed upon. The ruling highlights the role of arbitration in resolving conflicts where factual discrepancies and procedural delays complicate resolution.

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