The case involves a dispute between Zamalek FC, an Egyptian football club, and Ricardo Alves Fernandes, a retired Brazilian football player, regarding the termination of their employment contract. The contract, signed in 2008 for three seasons, was terminated by Fernandes in January 2009, citing just cause due to the club's failure to pay outstanding salaries and allowances. Fernandes filed a claim with FIFA’s Dispute Resolution Chamber (DRC), seeking unpaid remuneration and compensation for breach of contract. Zamalek FC countered, arguing Fernandes terminated the contract without just cause and sought damages. The DRC partially accepted Fernandes' claim, ordering the club to pay outstanding remuneration of USD 63,220 and EGP 11,400, plus 5% annual interest, and USD 425,000 as compensation for breach of contract, while rejecting the club’s counterclaim.
Zamalek FC appealed to the Court of Arbitration for Sport (CAS), which reviewed the case under the 2008 FIFA Regulations on the Status and Transfer of Players (RSTP) and Swiss law. The CAS emphasized its limited scope to the issues raised in the appealed decision and confirmed the DRC’s findings. Key issues included unlawful deductions by the club, such as a USD 10,000 registration fee and disproportionate fines, including a USD 34,374 deduction for a suspension period. The CAS upheld the DRC’s ruling that these deductions were unjustified, as the club failed to provide sufficient evidence or adhere to contractual terms. The panel also found the club’s 20% tax deduction on rent allowances unlawful, as the contract specified taxes applied only to the total contract amount, not additional allowances.
The CAS determined Fernandes had just cause to terminate the contract due to the club’s material breaches, including unpaid salaries and unlawful deductions, which eroded trust. Fernandes had also provided a warning letter before termination, fulfilling the prerequisites for just cause under Article 14 of the RSTP. The panel assessed compensation under Article 17, comparing Fernandes' hypothetical earnings had the contract been fulfilled with his actual post-breach situation. While the DRC awarded USD 425,000, Fernandes sought USD 1,000,000, the full contract value. The CAS noted the higher compensation calculation of USD 797,500 but upheld the DRC’s award due to procedural constraints, as Fernandes did not appeal the original decision.
The CAS dismissed Zamalek FC’s appeal, confirming the DRC’s decision and rejecting additional claims. The ruling underscored the importance of adhering to contractual obligations and the consequences of breaches in international football disputes. It also highlighted the limited scope of CAS review in appeals and the enforceability of FIFA regulations in resolving such conflicts. The case serves as a precedent for player-club disputes, emphasizing fair treatment, timely payments, and the validity of contract terminations under just cause.