The case involves an arbitration dispute between Columbus Sport 99 C.A., a Venezuelan basketball club, and three professional basketball coaches—Ivan Deniz O’Donnell, Marcos Cervero Simonet, and Ronald Gillen—regarding the alleged unilateral termination of their employment contracts without just cause or notice. The dispute centers on the coaches' claims for unpaid salaries and bonuses after their contracts were terminated. The case was initially heard by the FIBA Basketball Arbitral Tribunal (BAT), whose award was appealed to the Court of Arbitration for Sport (CAS). The CAS panel, composed of arbitrators from Bulgaria, Switzerland, and Spain, addressed several key legal issues, including procedural discretion, the right to be heard, and the standards of proof under Swiss and Venezuelan law.
The contracts, signed in 2016, stipulated monthly salaries, bonuses for achieving specific goals, and penalties for late payments. The contracts also included clauses guaranteeing full payment even if the coaches were released, unless termination followed proper written notification. The coaches argued that Columbus failed to meet its payment obligations and terminated their contracts unlawfully, while Columbus contended that the coaches’ performance justified termination. The BAT initially ruled in favor of the coaches, ordering Columbus to pay the claimed amounts, including late fees and arbitration costs. Columbus appealed this decision to CAS, challenging the award on procedural and substantive grounds.
The CAS panel examined whether the coaches were dismissed or resigned voluntarily. The coaches relied on WhatsApp messages and press articles to support their claim of dismissal, while Columbus submitted witness testimonies to argue resignation. The panel found the evidence ambiguous and insufficient to conclusively prove either claim. Under Venezuelan law, resignation and dismissal require proper notification or remedial efforts, which were absent here. The panel concluded that the coaches resigned without just cause, influenced by deteriorating relations with the club, and were not entitled to compensation for wrongful termination. However, the club was obligated to pay unpaid salaries for the period worked and a bonus for winning the 2016 FIBA Intercontinental Cup.
The panel applied Swiss law, specifically the Swiss Code of Obligations, to determine default interest rates on overdue payments. It ruled that Columbus owed Ivan Deniz O’Donnell USD 46,749.98, including unpaid salaries and a bonus, with 5% annual interest from the due dates. Marcos Cervero Simonet and Ronald Gillen were each owed USD 2,999.98, also with 5% interest. The panel partially upheld the appeal, setting aside the BAT award and replacing it with the CAS award, which specified the exact amounts and interest calculations. The decision underscores the importance of clear contractual terms, procedural fairness in arbitration, and the challenges of proving termination events in employment disputes. The case highlights the balance between a club’s managerial discretion and the contractual rights of coaches in professional sports.