The case involves a dispute between Al Sharjah Football Club and professional footballer Fellype Gabriel de Mello, along with Sociedade Esportiva Palmeiras, concerning the termination of the player's employment contract. The contract, signed in June 2013, was valid until June 2016 and outlined the player's remuneration, accommodation, flight tickets, and medical benefits. In August 2014, the player sustained an injury during a friendly match, requiring surgery. By March 2015, the player alleged the club had failed to pay his salaries for December 2014, January, and February 2015, as well as medical expenses, accommodation, and flight tickets, totaling USD 338,086. The player issued a default notice on 6 March 2015, threatening termination if payment was not made within five business days. The club denied receiving the accompanying power of attorney and offered a settlement in installments. Negotiations failed, and the player left the UAE without authorization on 15 March 2015, leading his lawyer to terminate the contract the next day due to non-payment. The club objected, claiming it had requested bank details for payment and warned the player that failure to return within ten days would result in termination. The player denied receiving this communication and filed a claim with FIFA's Dispute Resolution Chamber (DRC) on 27 March 2015, seeking USD 1,667,970 for unpaid salaries, expenses, and compensation for breach of contract. The club terminated the contract on 1 April 2015, citing the player's failure to return. The player subsequently signed a new employment agreement with Palmeiras on 13 May 2015.
The case was brought before the Court of Arbitration for Sport (CAS), which examined the validity of the termination, the necessity of a power of attorney for legal representation, and the contractual obligations of both parties. The club argued that the player's termination was invalid due to an allegedly defective power of attorney and an insufficient notice period. The club also claimed the player breached the contract by leaving the UAE without authorization and sought compensation under FIFA's regulations. The player countered that the termination was justified due to the club's failure to meet financial obligations and that the power of attorney was valid under Brazilian law and FIFA regulations. Palmeiras denied any involvement in inducing the player to breach his contract, stating all communications occurred after the termination.
In June 2017, the FIFA DRC partially accepted the player's claim, ordering the club to pay outstanding remuneration of USD 334,641 plus interest and compensation for breach of contract amounting to USD 924,028. The club appealed to the CAS in April 2018, requesting the FIFA DRC's decision be set aside and seeking compensation for the player's alleged breach. The CAS panel, after a hearing in September 2018, ruled in February 2019 that the player had just cause to terminate the contract due to the club's failure to pay wages and that the termination notice was valid. The panel dismissed the club's claims regarding the power of attorney and notice period, noting the club had engaged with the player's lawyer without prior objections. The panel also rejected the club's argument that the player's subsequent contracts should reduce the compensation, upholding the FIFA DRC's decision. The CAS dismissed the club's appeal in its entirety, confirming the player's termination was justified and absolving Palmeiras of any liability. The case highlights the importance of clubs fulfilling contractual obligations and the validity of legal representation in contractual disputes under FIFA and Swiss law.