The case involves a legal dispute between Al Masry Sporting Club and professional football player Jude Aneke Ilochukwu, centered on the termination of an employment contract due to unpaid salaries and alleged breaches of contractual obligations. The player signed a three-season contract with Al Masry in September 2012 but was loaned to El Dakhlia Sporting Club for the 2012/2013 season under a loan agreement that specified payment terms. The player claimed Al Masry failed to pay his salaries during the loan period and terminated the contract in August 2013, citing just cause. He filed a claim with FIFA's Dispute Resolution Chamber (DRC), seeking unpaid wages, compensation for breach of contract, and additional damages for bad faith. The DRC partially accepted his claim, ordering Al Masry to pay $150,000 in unpaid salaries plus interest and $250,000 as compensation for breach of contract, adjusted for the player's duty to mitigate damages.
Al Masry appealed to the Court of Arbitration for Sport (CAS), arguing the player was on loan to El Dakhlia and thus not their financial responsibility. The club also claimed the player left Egypt without authorization and presented a document allegedly signed by the player acknowledging full payment from El Dakhlia. However, the player disputed the document's authenticity, providing passport evidence that he was in Turkey on the alleged signing date. The CAS panel found the club's evidence unreliable and upheld the DRC's decision, ruling that the player had just cause to terminate the contract due to Al Masry's failure to meet financial obligations. The panel emphasized that repeated non-payment of salaries constitutes a severe breach under Swiss law and FIFA regulations, justifying termination without prior warning.
The case also addressed the relationship between the employment and loan contracts. While FIFA regulations generally suspend the original club's salary obligations during a loan period, the panel noted the parties could agree otherwise. The player argued Al Masry assured him of continued payments, but the panel found no evidence supporting this claim. Despite this, the club was held liable for unpaid salaries totaling $116,250, which fell due before and after the loan period, plus 5% annual interest. The panel dismissed the club's counterclaims, including a financial penalty imposed on the player, as unsubstantiated.
The decision underscores the importance of contractual adherence in sports law, particularly regarding financial obligations. It reaffirms that players have the right to terminate contracts with just cause when clubs fail to meet payment terms, and it highlights the burden of proof in disputes over loan agreements. The CAS panel's ruling balanced the player's rights with the principle of mitigating damages, ultimately awarding fair compensation while dismissing unproven claims. The case serves as a precedent for similar disputes, emphasizing the legal protections for players and the consequences for clubs that breach employment contracts.