The case involves a dispute between FC Torpedo Moscow and Polish footballer Adam Kokoszka regarding the termination of his employment contract and subsequent compensation claims. Kokoszka was employed by FC Torpedo Moscow from July 2014 to May 2017 under a contract specifying salary terms and termination conditions. In April 2015, Kokoszka terminated the contract, citing the club's failure to pay outstanding salaries. The club did not respond to the termination notice, and Kokoszka subsequently joined FC Slask Wroclaw in Poland under a new contract with a lower salary. Kokoszka filed a claim with FIFA's Dispute Resolution Chamber (FIFA-DRC), which partially upheld his claim in August 2016, ordering the club to pay overdue salaries with interest and compensation for breach of contract. FC Torpedo Moscow appealed this decision to the Court of Arbitration for Sport (CAS), arguing it had attempted to pay the outstanding salaries and disputing the compensation amount. The case was referred to a Sole Arbitrator, Prof. Lukas Handschin, who considered written submissions from both parties.
The legal framework centered on FIFA's Regulations on the Status and Transfer of Players (RSTP), particularly Articles 13, 14, and 17, which govern contract termination and compensation. Article 17 outlines that compensation for breach should consider factors such as remaining contract duration, salaries, and expenses incurred by the former club. The case also referenced Swiss law, which influences FIFA's compensation calculations. FC Torpedo Moscow contested the FIFA-DRC's decision, requesting disclosure of Kokoszka's new contract details and earnings from FC Slask to assess the compensation amount accurately. The proceedings before CAS focused on whether Kokoszka had just cause to terminate the contract due to unpaid salaries and whether the compensation awarded by FIFA-DRC was appropriate. The club sought to reduce the compensation by arguing that Kokoszka's new earnings should offset the damages, while Kokoszka maintained his right to terminate the contract and receive fair compensation.
A hearing was held on May 10, 2017, where both parties presented their arguments. FC Torpedo Moscow claimed no compensation should be paid, citing financial difficulties and a clause in the contract allowing termination if the team was relegated. They also argued that any compensation should be reduced based on Kokoszka's earnings with FC Slask. Kokoszka, however, asserted that he had just cause to terminate the contract and sought to uphold the FIFA decision. The Sole Arbitrator noted the lack of concrete evidence supporting the club's claims and confirmed that Kokoszka's termination was justified under Article 14 of the RSTP due to unpaid salaries.
The final award, issued on August 24, 2017, upheld the FIFA-DRC's decision, affirming Kokoszka's right to terminate the contract and the appropriateness of the compensation. The compensation was calculated based on Article 17 of the RSTP, considering factors such as remaining contract time, remuneration, and the specificity of sport. The calculation also aligned with Swiss law, specifically Article 337b of the Swiss Code of Obligations, which mandates compensation for the non-breaching party, reduced by earnings from new employment. Kokoszka's hypothetical earnings under the original contract were estimated at RUB 20,540,959, while his actual earnings from FC Slask amounted to PLN 157,759. After conversion to Russian rubles, the deduction was RUB 2,470,061, resulting in a final compensation of RUB 18,070,898, with an additional 5% interest. The CAS partially upheld the appeal, amending the FIFA-DRC's decision to reflect this amount. FC Torpedo Moscow was ordered to pay the compensation within 30 days, and all other claims were dismissed. The case highlights the complexities of employment disputes in football, particularly regarding contract termination and financial compensation, and underscores the importance of contractual obligations and legal principles in such disputes.