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2018 Football Transfer Dismissed English Appeal Procedure

Parties & Representatives

Arbitrators

President: Fabio Iudica

Decision Information

Decision Date: September 10, 2018

Case Summary

The case involves an appeal by Kayserispor Kulübü against a decision by FIFA’s Players’ Status Committee (PSC) concerning a contractual dispute with FC Bayern München. The dispute stemmed from Kayserispor’s failure to pay the first installment of a transfer fee for a player, as stipulated in a transfer agreement dated 13 June 2017. The agreement required two equal installments of EUR 25,000, due on 15 July 2017 and 15 July 2018. Kayserispor missed the first payment, prompting Bayern to file a claim with FIFA on 12 October 2017. Despite extensions granted to remedy the default, Kayserispor failed to comply, leading the PSC to rule on 20 December 2017 that the club must pay the overdue amount of EUR 25,000 plus interest, along with procedural costs of CHF 5,000. The PSC also imposed a registration ban on Kayserispor, lifting a previously suspended ban and adding a new suspended ban with an 18-month probation period, alongside a fine of CHF 25,000.

The Court of Arbitration for Sport (CAS) upheld the PSC’s decision, emphasizing key legal principles. It confirmed that extending a payment deadline does not constitute a novation of the original debt and highlighted FIFA’s discretion under Article 12bis of its regulations to impose sanctions based on factors such as the debtor’s behavior, the seriousness of the infringement, and prior offenses. The panel noted that repeated offenses warrant stricter penalties and clarified that its review of disciplinary decisions is limited to cases where the original decision was evidently and grossly disproportionate. The panel also affirmed that a suspended registration ban is automatically revoked if the club commits another infringement during the probationary period, with the ban added to any new sanctions.

Kayserispor appealed, arguing the sanctions were disproportionate, citing a banking error as the reason for the delayed payment and emphasizing their prompt rectification of the issue. They also highlighted that most of their other overdue cases had been resolved through conciliation. FIFA countered that Kayserispor had repeatedly failed to meet payment deadlines, including a six-month delay in paying Bayern, and stressed the importance of sanctions to enforce financial discipline. FIFA noted that the first ban was mandatory under its regulations, while the second was conditional on future conduct.

The CAS panel found no grounds to overturn the PSC’s decision, concluding that the sanctions were proportionate and justified given Kayserispor’s repeated failures to meet financial obligations and lack of cooperation during proceedings. The panel rejected Kayserispor’s claim that the banking error absolved them of liability, emphasizing the club’s responsibility to ensure timely payments. It also upheld the automatic revocation of the suspended ban due to the new violation during the probationary period, stating this was not subject to proportionality considerations.

Ultimately, the CAS dismissed the appeal and confirmed FIFA’s decision in full, enforcing the registration ban and maintaining the fine. The ruling underscores the strict enforcement of FIFA’s financial regulations and the consequences for clubs that fail to comply with contractual obligations. The decision serves as a reminder of the importance of adhering to payment deadlines and the disciplinary measures that can follow non-compliance.

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