The Court of Arbitration for Sport (CAS) issued a ruling on January 19, 2017, in the dispute between Al Jazira Football Sports Company and Cardiff City Football Club, with FIFA as the second respondent. The case stemmed from a loan agreement signed on January 5, 2016, concerning the temporary transfer of player Kenwyne Jones from Cardiff to Al Jazira. The agreement required Al Jazira to pay Cardiff £250,000 by February 10, 2016, but the payment was not made. Cardiff filed a claim with FIFA on February 18, 2016, and formally put Al Jazira in default on March 21, 2016, granting a ten-day deadline to fulfill the obligation. Al Jazira acknowledged financial difficulties but rejected the claim, proposing installment payments instead.
The FIFA Players’ Status Committee (PSC) ruled that Al Jazira had violated Article 12bis of the FIFA Regulations on the Status and Transfer of Players (RSTP) by failing to pay the overdue amount for more than 30 days without a contractual basis. The PSC ordered Al Jazira to pay the £250,000 and imposed a reprimand, citing a previous warning for a similar offense as an aggravating circumstance. Al Jazira appealed to CAS, arguing that Article 12bis should not apply to loan agreements, claiming it was intended only for permanent transfers.
The CAS panel, composed of Lars Hilliger, Michele Bernasconi, and Mark Hovell, upheld the FIFA decision. It clarified that Article 12bis applies to all transfer agreements, including loans, as the regulation does not distinguish between temporary and permanent transfers. The panel emphasized the legal principle "Ubi lex non distinguit, nec nos distinguere debemus" (where the law does not distinguish, neither should we) and referenced FIFA’s commentary stating that loans are administratively treated as transfers. The panel also noted that Swiss law requires an objective interpretation of association rules, starting with the wording and considering the regulatory context.
The CAS affirmed the PSC’s decision, confirming Al Jazira’s liability and the imposed sanction. The ruling reinforced the applicability of FIFA’s disciplinary measures to overdue payments in loan agreements, ensuring consistency in enforcing financial obligations between clubs. The panel dismissed Al Jazira’s appeal, upholding the reprimand and the requirement to pay the outstanding amount plus interest. The decision underscored the principle of pacta sunt servanda (agreements must be kept) and highlighted the importance of clubs meeting their financial commitments under FIFA regulations. The case concluded with no further appeals permitted, reinforcing the strict enforcement of financial obligations in football transfers.