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2017 Football Transfer Dismissed English Appeal Procedure

Parties & Representatives

Appellant: FK Sarajevo
Appellant Representative: Olivier Malisse; Luca Tettamanti
Respondent: KVC Westerlo
Respondent Representative: Leander Monbaliu

Arbitrators

President: Ivaylo Dermendjiev

Decision Information

Decision Date: April 16, 2018

Case Summary

The Court of Arbitration for Sport (CAS) issued a ruling on 16 April 2018 in a dispute between FK Sarajevo and KVC Westerlo concerning training compensation for a player who transferred between the clubs. The case revolved around whether FK Sarajevo had validly waived its right to training compensation, a system designed under FIFA’s Regulations on the Status and Transfer of Players (RSTP) to reward clubs for developing young talent. The player in question moved from FK Sarajevo to KVC Westerlo in 2015, and prior to the transfer, FK Sarajevo issued a letter waiving its right to training compensation under specific conditions, including receiving 10% of any future transfer fee and the player’s potential return to the club without a fee. KVC Westerlo argued this letter constituted a binding waiver, while FK Sarajevo later contested its validity, claiming the waiver was conditional and not explicitly renounced.

The CAS panel, applying Swiss law and FIFA regulations, examined whether the waiver was clear, unequivocal, and made by the entitled party. Swiss law generally permits waivers unless prohibited by statute or public policy, and the RSTP does not explicitly forbid them. The panel emphasized that waivers must be unambiguous and not implied. In this case, the panel found FK Sarajevo’s letter did not meet the required standard of clarity, as it was conditional and lacked explicit language renouncing the right to compensation. The panel also noted that only the club entitled to compensation can waive it, and the waiver does not require formal acceptance by the benefiting club.

The dispute arose when the player later transferred to a Slovakian club without a fee, prompting FK Sarajevo to demand compensation from KVC Westerlo in 2016. FIFA’s Dispute Resolution Chamber initially ruled in favor of KVC Westerlo, stating the waiver was valid, but the CAS overturned this decision, finding the waiver insufficiently clear. The panel reinforced that waivers of statutory rights must be explicit and unambiguous to be enforceable. The ruling highlights the complexities of training compensation disputes and underscores the importance of precise contractual language in such waivers. The CAS ultimately upheld FK Sarajevo’s entitlement to compensation, dismissing KVC Westerlo’s argument that the waiver was binding. The decision clarifies the legal standards for waivers in football transfers and reaffirms the principles of competitive balance and youth development underpinning FIFA’s training compensation system.

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