The case involved a dispute between Akhisar Belediye Gençlik ve Spor Kulübü Dernegi (the Club) and professional footballer Ivan Sesar (the Player) regarding the termination of the Player’s employment contract. The Club appealed a decision by FIFA’s Dispute Resolution Chamber (DRC), which ruled that the Player had just cause to terminate his contract. The Court of Arbitration for Sport (CAS) upheld the DRC’s decision, finding the termination justified under Swiss law and FIFA regulations. The central issue was whether the Club’s actions, including excluding the Player from the first team and urging him to find a new club, constituted a material breach of contract. The Player argued that the Club failed to fulfill its obligations, such as providing first-team training, paying agreed fees, and offering accommodations. The Club claimed the exclusion was due to Turkish Football Federation (TFF) regulations on foreign player quotas and the Player’s poor performance, but it failed to provide sufficient evidence to support these claims.
The CAS Sole Arbitrator, Mr. Sofoklis Pilavios, emphasized that just cause for termination requires a severe breach and must be assessed case-by-case. The Arbitrator found the Club’s actions demonstrated an unwillingness to honor the contract, as excluding the Player from the first team deprived him of career opportunities and violated fundamental contractual obligations. The Club’s reliance on TFF regulations was dismissed due to lack of evidence, and its request for the Arbitrator to seek clarification from the TFF was denied, as it violated procedural rules. The Arbitrator also rejected the Club’s argument that the Player’s subsequent lower earnings should reduce compensation, noting the Player had mitigated damages appropriately.
The DRC had initially awarded the Player €36,500 in unpaid remuneration and €152,000 as compensation for breach of contract, with 5% annual interest. The CAS upheld these amounts, dismissing the Club’s appeal and its counterclaim for €100,000 in compensation. The decision reinforced the principle of pacta sunt servanda (agreements must be kept) and highlighted the importance of good faith in employment contracts. The ruling underscored that administrative rules, such as foreign player quotas, cannot justify breaching contractual obligations. The CAS ultimately confirmed the DRC’s decision in full, dismissing all additional claims and affirming the Player’s right to terminate the contract for just cause. The case serves as a precedent for protecting players’ contractual rights and ensuring clubs honor their commitments.