The Court of Arbitration for Sport (CAS) issued a ruling on June 27, 2016, in the dispute between Victor Javier Añino Bermudez and Club Elazigspor Kulübü, concerning the termination of the player's employment contract and claims for compensation. The case centered on the club's failure to pay salaries and bonuses, as well as alleged mistreatment of the player, which he argued justified his unilateral termination of the contract. The CAS panel, composed of Prof. Martin Schimke, Mr. Mark Hovell, and Mr. Daniel Lorenz, examined whether the player had just cause to terminate the contract under Swiss law and FIFA regulations. The panel referenced Article 337 of the Swiss Code of Obligations, which permits termination if the continuation of the employment relationship violates good faith, and FIFA's Regulations on the Status and Transfer of Players (RSTP), which recognize non-payment of salaries for over three months as potential grounds for just cause.
The dispute arose from a private agreement signed in August 2013, which stipulated the player's salary and included clauses allowing termination if the club failed to pay two consecutive salaries within 30 days of notification. The club's financial difficulties led to unpaid salaries starting in January 2014, and the player reported additional grievances, such as exclusion from first-team activities, lack of proper training equipment, and unjustified disciplinary actions. Despite repeated warnings and attempts to negotiate, the club failed to rectify these breaches, prompting the player to terminate the contract on February 8, 2014. He filed a claim with FIFA, seeking compensation for unpaid salaries, bonuses, and damages, totaling EUR 3,512,189.06 gross. FIFA's Dispute Resolution Chamber initially awarded the player EUR 250,000 plus interest, but the player appealed to CAS for higher compensation.
The CAS panel concluded that the club's actions—including non-payment of salaries, unjust disciplinary measures, and mistreatment—constituted a material breach of the contract, justifying the player's termination with just cause. The panel emphasized that the club's failure to respect procedural rights and its lack of transparency eroded the player's trust, aligning with CAS jurisprudence and Swiss legal principles. Regarding compensation, the panel upheld the player's claim for EUR 1,700,000 as stipulated in the private agreement, adjusted to a gross amount of EUR 3,512,189.06 to account for Spanish tax residency. However, the panel deducted EUR 354,800, representing the player's earnings from his subsequent contract with CD Tenerife, resulting in a final award of EUR 3,157,389.06 plus 5% annual interest from the termination date. The panel dismissed the player's bonus claims due to insufficient evidence.
The ruling underscored the importance of contractual adherence, good faith, and procedural fairness in employment relationships within professional sports. It also clarified the calculation of compensation, including the grossing-up method for tax liabilities and the deduction of post-termination earnings. The CAS decision annulled the FIFA DRC's earlier ruling and ordered the club to pay the adjusted compensation, reinforcing the player's rights in cases of contractual breaches. The case highlights the role of arbitration in resolving complex disputes in international sports, balancing contractual terms with legal principles to ensure fair outcomes.