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2018 Football Disciplinary Dismissed English Appeal Procedure

Parties & Representatives

Arbitrators

President: Martin Schimke

Decision Information

Decision Date: October 31, 2018

Case Summary

The case revolves around Zamalek Sporting Club's appeal against a FIFA disciplinary sanction for failing to comply with a Court of Arbitration for Sport (CAS) award issued on July 11, 2017. The CAS ruling required Zamalek to pay Alexis Enam Mendomo outstanding remuneration of USD 254,000 plus interest, along with other costs. Despite repeated notifications from FIFA and the player, Zamalek did not fulfill its payment obligations, leading FIFA to initiate disciplinary proceedings under Article 64 of the FIFA Disciplinary Code (FDC). The FIFA Disciplinary Committee found Zamalek guilty and imposed a fine of CHF 30,000, along with a 90-day grace period to settle the debt. Failure to comply would result in a six-point deduction in the domestic league and potential relegation.

Zamalek appealed to CAS, arguing that its non-compliance was due to force majeure, citing economic restrictions in Egypt, including caps on foreign currency transfers and the seizure of its bank accounts. The club also proposed alternative payment methods, such as depositing funds in an Egyptian bank account or cash payments, which the player rejected. The CAS panel, comprising Prof. Martin Schimke, Mr. David Wu, and Prof. Luigi Fumagalli, examined whether these circumstances justified Zamalek's failure to pay. The panel emphasized that financial difficulties do not excuse non-compliance with binding decisions and that force majeure requires extraordinary, unforeseeable events beyond the debtor's control, which Zamalek could not prove.

FIFA countered Zamalek's claims, noting that the club had conducted international transfers exceeding the alleged caps during the same period, including a €175,000 payment in 2015. FIFA also highlighted that the Central Bank of Egypt had lifted restrictions in June 2017, giving Zamalek ample time to comply. The panel rejected Zamalek's arguments, stating that the club had not demonstrated a valid force majeure situation and that the seizure of its accounts resulted from its own financial mismanagement. The panel upheld FIFA's disciplinary measures, reinforcing the principle that contractual obligations must be honored unless truly exceptional circumstances prevent compliance.

The ruling underscores the binding nature of CAS awards and FIFA's authority to enforce them, ensuring clubs respect their financial commitments to players and other stakeholders. The panel dismissed Zamalek's appeal, confirming the disciplinary sanctions and emphasizing that creditors cannot be forced to accept alternative payment methods. The decision highlights the importance of compliance with financial obligations in international football, regardless of external challenges. The case serves as a reminder of the strict enforcement mechanisms within FIFA's disciplinary framework and the role of CAS in resolving disputes between clubs and governing bodies.

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