The case of AFC Astra v. Toni Gorupec, adjudicated by the Court of Arbitration for Sport (CAS) on December 4, 2018, revolved around the termination of a professional football player's employment contract and the ensuing legal disputes. The conflict arose when Toni Gorupec, a Croatian player, terminated his contract with Romanian club AFC Astra due to non-payment of salaries. The club contested the termination, arguing it lacked just cause and that Romanian football regulations should govern the dispute. The CAS addressed several key legal issues, including the choice of applicable law, jurisdiction, and the merits of the termination.
The CAS clarified that the CAS Code's conflict-of-law rules (Article R58) take precedence over other agreements, ensuring uniformity in applying sports regulations. It ruled that the player's choice to bring the claim before FIFA's Dispute Resolution Chamber (DRC) was valid, binding both parties once selected. On the merits, the CAS found that persistent non-payment of salaries constituted a severe breach, justifying unilateral termination. The panel emphasized that financial hardship on the player's part was irrelevant; the club's failure to meet contractual obligations alone sufficed. The CAS affirmed that a party terminating with valid reason is not liable for compensation or sporting sanctions, while the breaching party (the club) may face damages and sanctions.
The factual background revealed the player had sent a default notice for unpaid salaries before terminating the contract. The club argued that Romanian regulations required a different dispute resolution process and contested FIFA's jurisdiction. The CAS dismissed these arguments, upholding the player's right to terminate and seek redress through FIFA's mechanisms. The CAS affirmed the FIFA DRC's decision, ruling in favor of the player and reinforcing principles of contractual stability and player rights.
The dispute also involved a payment of EUR 14,962 made by AFC Astra to Gorupec, which the FIFA DRC initially disregarded due to incomplete translation. The CAS Sole Arbitrator found the payment valid, adjusting the compensation to EUR 19,538 by deducting the disputed amount from the original EUR 34,500. The arbitrator confirmed an interest rate of 5% per annum from the date of the effective payment until actual payment, per Swiss law. The CAS partially upheld AFC Astra’s appeal, amending the FIFA DRC’s decision to reflect the reduced amount and applicable interest.
The case highlighted the complexities of contractual disputes in international football, particularly regarding jurisdiction, just cause for termination, and compensation calculations. It underscored the importance of clear contractual terms, timely salary payments, and the consequences of breaches in professional sports. The decision reinforced FIFA's authority in resolving international employment disputes and set a precedent for similar cases, emphasizing the protection of players' rights and the primacy of FIFA's regulations in global football disputes.