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2016 Football Transfer Upheld English Appeal Procedure

Parties & Representatives

Appellant Representative: Breno Costa Ramos Tannuri
Respondent Representative: Ivandro Sanchez; Ricardo Moreira

Arbitrators

President: Rui Botica Santos

Decision Information

Decision Date: November 30, 2016

Case Summary

The case CAS 2016/A/4736 involves a dispute between Cruzeiro Esporte Clube and Clube Atlético Paranaense over the payment of a National Solidarity Mechanism fee related to the transfer of a football player. The central issue was whether Atlético Paranaense, as the training club, was entitled to compensation for developing the player during his early career. The Comitê de Resolução de Litígios da CBF (CBF DRC) initially ruled in favor of Atlético Paranaense, ordering Cruzeiro to pay 18.36% of 5% of the transfer fee, plus legal interest and costs. Cruzeiro appealed to the Court of Arbitration for Sport (CAS), arguing the claim was time-barred under Article 64 of the CBF Regulations, which imposes a two-year limitation period starting from the player’s contract registration with the new club.

The Sole Arbitrator, Mr. Rui Botica Santos, examined the legal framework, including the Pelé Law and CBF Regulations. The Pelé Law recognizes the CBF’s autonomy to regulate football matters, including solidarity contributions. The Arbitrator emphasized that legal interpretation must first consider the literal wording of provisions, finding Article 64 clear in stating the limitation period begins upon contract registration. The Arbitrator noted no conflict with Brazilian law, as the Pelé Law does not specify a limitation period for solidarity claims, and the Brazilian Civil Code permits special rules like those in the CBF Regulations.

The player, D., was registered with Atlético Paranaense from 2001 to 2006 before transferring to other clubs and joining Cruzeiro in 2013. Atlético Paranaense filed its claim on 28 January 2015, within two years of the registration date (28 January 2013). The CBF DRC rejected Cruzeiro’s time-bar argument, ruling the period should be calculated from the registration date, not the alleged rights violation. The Arbitrator upheld this interpretation, affirming the CBF’s regulatory authority.

The Arbitrator also addressed a dissenting opinion in the CBF DRC decision, which argued for dismissing the claim due to the statute of limitations. However, the majority view prevailed, and the Arbitrator agreed, concluding the CBF’s interpretation was legally sound. The award upheld the CBF DRC’s decision, requiring Cruzeiro to pay the solidarity contribution, plus interest and costs, as the claim was filed within the permissible timeframe.

In a related appeal, Cruzeiro challenged the CBF Chamber’s decision, arguing the claim was time-barred as it was filed on 29 January 2015, beyond the two-year period from the contract registration (18 January 2013). Atlético Paranaense countered that the deadline should begin 30 days post-transfer, per Article 29-A of the Pelé Law. The CAS was tasked with resolving this conflict between the CBF Regulations and national law. The Sole Arbitrator ruled the limitation period began at contract registration, dismissing Atlético Paranaense’s claim as time-barred.

The case underscores the CBF’s authority to regulate solidarity mechanisms and the importance of adhering to procedural deadlines in football disputes. It highlights the interplay between national sports regulations and broader legal frameworks, with CAS ensuring compliance with both Brazilian law and Swiss public policy. The decision reinforces the autonomy of sports bodies in setting procedural rules and the necessity for clubs to act within prescribed time limits to enforce their rights. The ruling ultimately favored Cruzeiro, setting aside the CBF DRC’s decision and dismissing Atlético Paranaense’s claim due to the expiration of the limitation period.

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