The case involves a contractual dispute between Beijing Guoan FC, FIFA, Brazilian footballer André Luiz Barreto Silva Lima, and Club Esporte Clube Vitória, adjudicated by the Court of Arbitration for Sport (CAS). The dispute arose from Lima's loan agreement with Vitória and his subsequent failure to return to Beijing Guoan by the agreed deadline of January 10, 2014, following a serious knee injury sustained in July 2013. Beijing Guoan terminated Lima's contract on February 14, 2014, citing breach of contract, and sought significant financial compensation, including USD 1.2 million from Lima and USD 900,000 from Vitória, along with daily penalties. The FIFA Dispute Resolution Chamber (DRC) initially ruled in Lima's favor, finding the termination unjustified and ordering Beijing Guoan to pay Lima USD 962,504 in compensation for wrongful termination, plus interest.
The CAS panel examined two key issues: whether Vitória and Lima breached the loan agreement and whether Beijing Guoan had just cause to terminate the contract. The panel found that Lima breached the loan agreement by not returning to China on time but rejected Vitória's liability, as Beijing Guoan had canceled its request for Lima's return. The panel deemed the USD 1.2 million penalty excessive under Swiss law, reducing it to USD 90,000 to reflect one month's salary and Beijing Guoan's actual losses. It also dismissed the daily penalty claim due to lack of formal demand. Regarding the termination, the panel upheld the DRC's decision, ruling that Beijing Guoan lacked just cause, as Lima's absence was due to injury recovery and the club failed to issue proper warnings or explore milder sanctions. The panel affirmed the compensation of USD 962,504 plus interest, based on the "positive interest" principle under FIFA's Regulations on the Status and Transfer of Players (RSTP), ensuring Lima received remuneration for the remaining contract period.
The final CAS award, issued on August 5, 2015, modified the DRC's decision by ordering Lima to pay Beijing Guoan USD 90,000 plus interest, while maintaining the bulk of the compensation owed to Lima. The panel emphasized contractual stability in football, the reasonableness of penalties, and the necessity of due process in terminations. The case highlights the complexities of international player loans, injury management, and the balance between contractual obligations and equitable remedies in sports disputes. The decision underscores the importance of clear communication, proportionality in penalties, and adherence to procedural fairness in resolving contractual conflicts in professional football.