The case involves a contractual dispute between FC Shakhtar Donetsk, a Ukrainian football club, and Brazilian player Luiz Adriano Souza da Silva. The dispute arose from penalties imposed by the club on the player for alleged breaches of their employment contract, including late arrival after leave, failure to return a club-provided car, and denied reimbursement for travel costs. The player declined a transfer offer from Al Ahli FC in June 2015, after which the club instructed him to join the team in Austria by a specified date. The player did not arrive on time, citing his wife's surgery and recovery, and provided medical certificates. The club deducted 50% of his June 2015 salary and an additional amount for the unreturned car. The player later transferred to AC Milan, and the contract was terminated. The player filed a claim with FIFA, seeking unpaid salary and flight reimbursements. FIFA's Dispute Resolution Chamber partially accepted his claim, ordering the club to pay outstanding remuneration and interest. The club appealed to the Court of Arbitration for Sport (CAS), where the sole arbitrator ruled that contractual penalties must be applied in good faith and that penalties imposed illegitimately should not be recognized. The arbitrator found the club's actions lacked good faith, particularly in enforcing penalties and deductions, given the timing and circumstances surrounding the player's transfer. The club's one-day deadline for the player to return from Brazil to Austria was deemed unrealistic and unreasonable, and the penalty for late arrival was applied in bad faith. The deduction for the unreturned car was also ruled illegitimate, as the club failed to substantiate its claims or provide the player an opportunity to respond. Regarding travel costs, the arbitrator upheld the player's claim, as the contract did not impose time limits for reimbursement within the same financial year, and the club failed to provide evidence of any additional policy limiting such claims. The CAS dismissed the club's appeal, confirming the FIFA Dispute Resolution Chamber's decision and emphasizing the importance of contractual fairness and good faith in employment relationships. The ruling underscores the legal and ethical obligations in contractual agreements, particularly in professional sports, where employment terms can be complex and highly regulated. The arbitrator's decision balanced the interests of both parties, upholding the player's rights while acknowledging the club's contractual entitlements, provided they were exercised in good faith. The case highlights the necessity for clear contractual terms and the fair application of penalties, ensuring they are not used abusively or unfairly.