The case involves Cleiton Ribeiro Xavier, a Brazilian football player, who filed an appeal with the Court of Arbitration for Sport (CAS) against FIFA, FC Metalist, and the Football Federation of Ukraine (FFU) over unpaid salaries and breach of contract. The dispute originated from a 2015 FIFA Dispute Resolution Chamber (DRC) decision ordering FC Metalist to pay Xavier outstanding remuneration and compensation. Despite the ruling becoming final, FC Metalist failed to comply, prompting Xavier to request FIFA to initiate disciplinary proceedings. However, FIFA later informed Xavier it could not proceed because FC Metalist had lost its affiliation with the FFU and was no longer under FIFA's jurisdiction. Xavier then appealed to CAS in June 2017, challenging FIFA's inaction and seeking enforcement of the DRC decision.
The CAS proceedings, overseen by Sole Arbitrator Prof. Petros Mavroidis, examined several legal principles, including the tribunal's jurisdiction under Swiss law and the definition of an appealable decision. The arbitrator confirmed that FIFA's May 2017 letter, which stated its inability to act due to FC Metalist's disaffiliation, did not constitute a formal decision but was merely an administrative notice. Consequently, the CAS ruled the letter was not appealable. The arbitrator also dismissed Xavier's claim of denial of justice, noting FIFA's lack of authority over non-affiliated clubs. The case highlighted procedural challenges in enforcing decisions against clubs in financial distress, particularly when they lose affiliation with governing bodies.
Xavier sought payment of unpaid salaries totaling USD 1,166,666.68, plus interest, and compensation for breach of contract amounting to USD 3,093,112.40, along with legal costs. He argued that FIFA's delay in addressing the disciplinary case amounted to a denial of justice and that a CAS award was necessary to establish his claim in FC Metalist's Ukrainian bankruptcy proceedings. FIFA countered that its May 2017 letter was not a decision and that it lacked jurisdiction over FC Metalist post-disaffiliation. The FFU requested exclusion from the case, asserting it was a contractual dispute between Xavier and FC Metalist.
The arbitrator emphasized that the disciplinary committee's role was limited to assessing compliance with the DRC decision, not revisiting its substance. The case underscored the complexities of international sports arbitration, particularly when clubs become insolvent or disaffiliated. The CAS ultimately ruled it had no jurisdiction to hear the appeal, dismissing Xavier's claims. The decision reinforced the importance of club affiliation for disciplinary proceedings and the limitations of legal recourse when clubs fall outside FIFA's jurisdictional scope. The case serves as a notable example of the challenges players face in securing payments from financially troubled clubs.