The Court of Arbitration for Sport (CAS) issued a ruling on January 27, 2017, in the dispute between Balikesirspor FC and Ante Kulusic, concerning the termination of the player's employment contract. The case arose from Kulusic's unilateral termination of his contract with the club on June 3, 2015, due to unpaid salaries totaling EUR 130,000, which included part of his February 2015 salary and full salaries for March, April, and May 2015. The club disputed the claim, arguing it had fulfilled its payment obligations and that the termination was unjustified. The CAS panel, composed of Lars Hilliger, Petros Mavroidis, and Bernhard Welten, examined the case based on written submissions, as both parties agreed to forgo a hearing.
The panel found that the club had indeed failed to pay the player's salaries, constituting a substantial breach of contract. It emphasized that repeated or significant non-payment of remuneration justifies unilateral termination under Article 14 of the FIFA Regulations, provided the employee issues prior warnings. Kulusic had sent multiple warnings, including a final ultimatum on May 26, 2015, which the club ignored. The panel also addressed the principle of "positive interest," ensuring the injured party is compensated to the position they would have been in had the contract been fulfilled. The player was awarded EUR 130,000 in unpaid salaries, plus 5% annual interest from specified dates.
Regarding compensation for breach of contract, the panel calculated the residual value of the original contract (EUR 1,150,000) and deducted the player's earnings from subsequent contracts with Gençlerbirligi Spor (EUR 640,000), resulting in a net compensation of EUR 510,000. The club argued the compensation was excessive and that the player failed to mitigate damages by not securing comparable employment in Turkey. However, the panel rejected these claims, noting the player acted in good faith and diligently sought alternative employment, fulfilling his duty under Swiss law (Article 337c of the Swiss Code of Obligations).
The CAS ruling upheld the FIFA Dispute Resolution Chamber's decision, affirming the player's right to terminate the contract with just cause and receive fair compensation. The club was ordered to pay the outstanding remuneration and compensation, plus interest, while all other claims were dismissed. The case underscores the importance of contractual obligations in professional football and the legal consequences of breaching them, particularly regarding timely salary payments and the duty to mitigate losses. The decision reinforces the principle of pacta sunt servanda (agreements must be kept) and provides clarity on the financial repercussions of unilateral terminations in sports employment disputes.