The Court of Arbitration for Sport (CAS) resolved a contractual dispute between Al-Arabi Sports Club and professional footballer Matthew Spiranovic, stemming from the club's termination of his employment contract without just cause in May 2013. The case was initially adjudicated by FIFA's Dispute Resolution Chamber (DRC), which ruled in favor of Spiranovic, awarding him compensation of USD 1,381,592 plus interest. Al-Arabi appealed this decision to CAS, leading to a comprehensive legal analysis of the contractual and regulatory issues involved.
The dispute centered on the validity of Article 10(3) of the contract, which the club claimed allowed unilateral termination without just cause, specifying compensation terms favoring the club. Spiranovic argued the clause was unbalanced and unenforceable. The CAS panel, applying FIFA Regulations and Swiss law, found Article 10(3) null and void, as it disproportionately favored the club and violated principles of contractual stability and fairness under Swiss labor law. The panel emphasized that such clauses must be reciprocal and not grant undue advantage to one party.
Compensation was instead calculated under Article 17(1) of FIFA's Regulations on the Status and Transfer of Players, based on the residual value of the contract (USD 1,476,592) minus Spiranovic's earnings from a subsequent contract with Western Sydney Wanderers (USD 95,000), resulting in the awarded amount. The panel rejected the club's argument that Spiranovic failed to mitigate damages, noting his diligent efforts to secure new employment despite challenges, including a minor injury.
Regarding interest, the panel ruled that while Qatari law (the contract's chosen law) did not provide for compensatory interest, default interest of 5% per annum under Swiss law would apply if payment was delayed beyond 30 days of the award's notification. The decision clarified the interplay between FIFA's uniform regulations and national laws, reinforcing FIFA's precedence in football-related disputes.
Ultimately, CAS upheld the DRC's compensation calculation but adjusted the interest ruling, ordering Al-Arabi to pay the specified amount within 30 days, subject to default interest if unpaid. The case underscores the importance of contractual fairness, the duty to mitigate losses, and the enforceability of balanced terms in football employment contracts. It also highlights CAS's role in ensuring consistent application of FIFA regulations while respecting the parties' contractual choices. The ruling serves as a precedent for similar disputes, emphasizing the need for clarity and reciprocity in contractual clauses to maintain stability in professional football.