The case involves a dispute between José Carlos Ferreira Alves, a professional football coach, and Al Ahli Saudi Club concerning the termination of his employment contract. The contract, signed on 28 July 2012, was initially valid for two years and included an automatic renewal clause unless either party provided notice of non-renewal at least one month before the original term ended. The Club claimed a mutual agreement not to renew was reached during a meeting on 14 May 2014, evidenced by the Coach returning keys to his housing and car. However, the Coach denied receiving formal notification and argued the contract was automatically renewed when the Club failed to provide timely notice. On 1 July 2014, the Coach requested a plane ticket to return to work, but the Club responded on 2 July 2014, stating his contract had been terminated. The Coach contended this email was the first formal notification, arriving after the renewal deadline.
The dispute was adjudicated by a Sole Arbitrator, who ruled the automatic renewal clause was valid under Swiss law, placing the burden of proof on the Club to demonstrate timely communication of non-renewal. The Club failed to provide sufficient evidence, and the Arbitrator deemed its 2 July 2014 email insufficient as it was sent after the renewal deadline. The Arbitrator also found the Coach had just cause to terminate the contract under Article 337 of the Swiss Code of Obligations, as the Club failed to fulfill obligations like providing flight tickets and unilaterally declared the contract terminated. While the Coach’s inactivity in following up was noted as contributory negligence, it did not negate his right to terminate.
The Coach sought USD 99,600 in compensation, including unpaid salary for July 2014 and damages for breach of contract. The Single Judge of FIFA’s Players’ Status Committee initially ruled the automatic renewal clause invalid due to lack of clarity and renegotiation opportunity, concluding the contract ended on 27 July 2014. The Judge awarded the Coach USD 3,600 for unpaid salary but dismissed the larger claim. Dissatisfied, the Coach appealed to the Court of Arbitration for Sport (CAS), which upheld the validity of the renewal clause, ruling the contract was extended for another two years. The CAS found the Club’s failure to provide flight tickets and its unilateral termination email constituted just cause for the Coach to terminate the contract. However, the Coach’s inactivity reduced his compensation by 25% to USD 72,000, plus 5% annual interest from 18 March 2015.
The case underscores the importance of clear contractual terms, timely communication, and adherence to obligations in employment disputes. The Arbitrator’s decision emphasized fairness in assessing both parties' actions while upholding contractual validity and legal principles. The final ruling ordered the Club to pay the reduced compensation and interest, dismissing all other claims and motions. The matter was conclusively resolved, with no further appeals or requests entertained.