The Court of Arbitration for Sport (CAS) resolved a dispute between FC Lokomotiv Moscow and Desportivo Brasil Participações Ltda. concerning a transfer agreement involving a professional football player. The case centered on whether Lokomotiv owed Desportivo Brasil an additional EUR 1,500,000 after the player's initial contract expired on 30 June 2014 and a new contract was signed 15 days later on 15 July 2014. Desportivo Brasil argued this constituted an extension or renewal under the transfer agreement, triggering the payment obligation, while Lokomotiv claimed the player was a free agent during the gap, thus nullifying the requirement. The FIFA Players’ Status Committee initially ruled in favor of Desportivo Brasil, ordering Lokomotiv to pay the amount plus interest. Lokomotiv appealed to CAS, which upheld the decision, determining the 15-day gap did not interrupt the continuity of employment, as the player’s role remained unchanged.
The CAS panel, composed of Prof. Dr. Martin Schimke, Prof. Luigi Fumagalli, and Mr. Manfred Nan, reviewed written submissions from both parties without a hearing. Lokomotiv contested the ruling on several grounds, including the argument that the entities signing the transfer agreement and amendment were different, rendering the claim invalid. The panel dismissed this, finding the entities were branches of the same company. The panel also addressed solidarity contributions, clarifying that the EUR 1,500,000 payment, being part of the net transfer fee, was exempt from deductions, as the original agreement had waived such contributions.
The decision reinforced the principle of pacta sunt servanda (agreements must be upheld) and emphasized the importance of contractual clarity in sports disputes. It ruled that the close temporal and material connection between the two contracts justified viewing the new contract as an extension, triggering the payment obligation. The panel also adjusted the interest calculation, ruling it would accrue from 13 April 2016, the date Lokomotiv was formally notified of the claim, at a rate of 5% annually until payment. The final award required Lokomotiv to pay Desportivo Brasil EUR 1,500,000 within 30 days of notification, plus interest, and dismissed all other claims. The case underscores the binding nature of contractual terms and the CAS’s role in interpreting and enforcing them in sports-related disputes.