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2018 Football Contractual litigations Partially Upheld English Appeal Procedure

Parties & Representatives

Arbitrators

President: Efraim Barak

Decision Information

Decision Date: February 20, 2019

Case Summary

The case involves a dispute between professional football player Juan Carlos Real Ruiz and Fotbal Club CFR 1907 Cluj S.A. regarding the termination of the player's employment contract and unpaid salaries. The dispute was adjudicated by the Court of Arbitration for Sport (CAS), which applied Swiss law subsidiarily due to the absence of specific FIFA regulations governing contract interpretation. The central issue revolved around the validity of a termination agreement and the player's entitlement to unpaid salaries and flight ticket reimbursements. The player and the club had initially entered into a "Legal Agreement" in March 2016, valid until June 2017, which included monthly payments and additional benefits. Later, an addendum deferred certain payments, and in May 2017, discussions via text messages indicated an agreement that the player would not return for the next season, with the club agreeing to pay salaries for April and May 2017. However, the club later insisted on a termination agreement offering only one month's salary and threatened sanctions if the player did not comply.

The CAS panel emphasized the importance of mutual consent in contract terminations and the protection of employees' rights under mandatory legal provisions. It found that the club's unilateral imposition of the termination agreement contradicted the earlier mutual understanding reflected in the text messages. The player filed a claim with FIFA's Dispute Resolution Chamber (DRC), seeking unpaid salaries and flight ticket reimbursements. The DRC ruled the claim admissible but rejected it on the merits, focusing on jurisdictional issues. The player then appealed to the CAS, which reviewed the case based on written submissions, as both parties agreed to forgo a hearing.

The CAS Sole Arbitrator examined the parties' true intentions under Swiss law, focusing on communications between the club's representative and the player's agent. These exchanges indicated the Termination Agreement was signed to facilitate the early termination of the player's contract while ensuring he received his May 2017 salary. The Sole Arbitrator ruled in favor of the player regarding the May 2017 salary but found no evidence supporting the player's claim for flight ticket reimbursement, concluding he had waived this right by signing the Termination Agreement. The player's argument that the waiver violated Swiss law was dismissed, as the waiver was part of a mutual arrangement, not a one-sided waiver.

Ultimately, the CAS partially upheld the player's appeal, setting aside the FIFA DRC decision. The club was ordered to pay the outstanding salary with interest, though the payment had already been made, resolving the debt. All other claims were dismissed. The case highlights the complexities of contractual interpretation in sports law, particularly regarding labor protections and the enforceability of waiver clauses, and underscores the importance of clear contractual terms and mutual intent in resolving disputes.

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