The case involves a dispute between El Jaish Sports Club, a professional basketball club in Qatar, and Giovanni Funiciello, a FIBA-licensed basketball agent, over unpaid agent fees related to a player's contract. The conflict arose from the 2013/2014 season employment contract between the club and the player, where Funiciello acted as the agent. The initial contract, signed on September 12, 2013, stipulated that Funiciello would receive a 10% commission on the player's salary, including future seasons if the player was re-contracted. The club made partial payments but later engaged the player for the 2014/2015 season without involving Funiciello, who had been replaced by another agent. Funiciello demanded payment for the 2014/2015 season based on the original contract, but the club refused.
The Basketball Arbitral Tribunal (BAT) ruled in Funiciello's favor, ordering the club to pay the outstanding fees. The club appealed to the Court of Arbitration for Sport (CAS), arguing that Funiciello was not a party to the subsequent contract and thus not entitled to fees. The CAS upheld the BAT's decision, ruling that Funiciello was bound by the arbitration clause in the original agreement due to his explicit mention and signature. The CAS affirmed that the club was obligated to pay Funiciello's commission for future seasons as per the initial contract, regardless of his involvement in later negotiations, provided the terms were fair. The CAS emphasized that an arbitration agreement can extend to a third party with a close legal relationship, as was the case with Funiciello's role in the original contract.
The club contested the BAT's jurisdiction and the validity of the award, arguing that the 2013 agreement was merely a draft with discrepancies between its Arabic and English versions. They also claimed Funiciello was not involved in the 2014/2015 negotiations, as the player had switched agents. The CAS rejected these arguments, noting that the 2013 draft remained binding and that Funiciello was entitled to the commission under its terms. The CAS corrected the BAT's calculation, reducing the commission from $16,200 to $14,400, based on the player's actual salary of $18,000 per month for eight months. The club had already paid this amount to the new agent, confirming the accuracy of the revised calculation.
The CAS ruled that the club's obligation to pay Funiciello was enforceable under the principle of pacta sunt servanda (agreements must be kept), dismissing the club's appeal and upholding the BAT's award with the corrected amount. The decision reinforced the binding nature of arbitration clauses in sports contracts and the obligations of clubs to honor agreed-upon agent fees, even in subsequent engagements. The CAS also cautioned against clubs paying multiple agents in future seasons to avoid unfairness. The ruling concluded with the club ordered to pay Funiciello $14,400 plus interest at 5% per annum from September 4, 2014, and dismissed all other claims from both parties.