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2016 Football Contractual litigations Dismissed English Appeal Procedure

Parties & Representatives

Arbitrators

President: Fabio Iudica

Decision Information

Decision Date: October 11, 2016

Case Summary

The case involves a legal dispute between Rizespor Futbol Yatirimlari AS (the Club) and David Alberto Depetris (the Player), with FIFA as a respondent, concerning the termination of the Player's employment contract due to unpaid salaries. The Court of Arbitration for Sport (CAS) upheld the Player's claim that he had just cause to terminate the contract, affirming the decision of the FIFA Dispute Resolution Chamber (DRC). The Player and the Club had signed a contract in January 2013, valid until May 2016, which included monthly salary payments and bonuses. However, the Club repeatedly failed to meet its financial obligations, leading to an agreement in February 2014 acknowledging outstanding debts and setting a repayment schedule. Despite this, the Club continued to default on payments, prompting the Player to send formal notices demanding compliance. When the Club failed to fulfill its promises, the Player terminated the contract in May 2014, citing persistent breaches. The Club contested the termination, arguing the delays were justifiable, but the DRC ruled in favor of the Player, finding the Club's failure to pay salaries constituted a material breach. The Club appealed to CAS, which upheld the DRC's decision, emphasizing the Club's repeated defaults and lack of reliability. The CAS panel also noted it could not award compensation beyond what the Player had requested under the principle of ne ultra petita. The dispute centered on unpaid salaries totaling EUR 35,000 for March and April 2014, along with three installments of EUR 25,000 each under a prior agreement, amounting to EUR 75,000. The Player sought EUR 637,439 as compensation for breach of contract, plus interest. The Club countered that the delays were acceptable and filed a counterclaim for EUR 200,000, alleging the Player breached the contract without just cause. The DRC ruled in favor of the Player, ordering the Club to pay EUR 110,000 in outstanding remuneration plus 5% annual interest and EUR 550,000 as compensation for breach of contract. The Club appealed to CAS, arguing the compensation was excessive and the Player acted in bad faith. The Player and FIFA opposed the appeal, asserting the Club's non-payment justified the termination. The CAS Panel confirmed its jurisdiction and found the appeal admissible but noted procedural irregularities in the Club's submissions. The Panel concluded the Player had just cause to terminate the contract due to the Club's repeated failures to meet financial obligations, referencing Swiss law and FIFA regulations. The Panel upheld the DRC's decision, dismissing the Club's appeal and confirming the compensation awarded to the Player. The final award, issued on October 11, 2016, reinforced the principle that clubs must adhere to their financial commitments to maintain valid employment relationships with players. The decision underscores the legal consequences of contractual breaches and the importance of timely salary payments in professional sports.

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