The case involves a legal dispute between Brazilian football club Cruzeiro EC and Ukrainian club FC Zarya Luhansk over a player transfer agreement. The conflict arose when Cruzeiro failed to pay certain instalments as stipulated in the transfer agreement, prompting FC Zarya to initiate legal proceedings before FIFA and later the Court of Arbitration for Sport (CAS). FIFA initially ruled in favor of FC Zarya, ordering Cruzeiro to pay default interest on delayed payments and the outstanding fourth instalment. Cruzeiro appealed this decision to CAS, which upheld the validity of the transfer agreement and dismissed Cruzeiro's claims, reinforcing FC Zarya's rights. The CAS emphasized the principle of res judicata, which prevents re-litigation of matters already decided, and highlighted its dual aspects: the prohibition to re-examine the same matter and the binding effect of prior decisions. The tribunal found that Cruzeiro breached the transfer agreement by failing to meet payment obligations, while FC Zarya fulfilled its contractual duties.
The dispute centered on the validity of the transfer agreement and the obligation to pay the transfer fee. Cruzeiro argued that FC Zarya did not legitimately hold the player's rights, citing a letter from FC Metalist as evidence. However, the CAS dismissed this argument, noting that the player's registration with football authorities (FFU and CBF) provided sufficient proof of the transfer's validity. The Sole Arbitrator concluded that FC Zarya had validly transferred the player’s economic and federative rights to Cruzeiro, who was therefore bound to pay the outstanding instalments plus default interest. Cruzeiro's attempt to reclaim payments made for earlier instalments was also dismissed as inadmissible due to procedural delays and the principle of res judicata.
The CAS proceedings mirrored an earlier case (CAS 2017/A/5195), where the Transfer Agreement was deemed valid. Cruzeiro's appeal was ultimately dismissed, confirming FIFA's decision and upholding FC Zarya's entitlement to the unpaid transfer fees. The ruling underscored the importance of contractual compliance in football transfers and the role of governing bodies like FIFA and CAS in resolving such disputes. The final decision ordered Cruzeiro to bear all costs associated with the appeal, including legal expenses and administrative fees. The case highlights the binding nature of prior rulings and the importance of adhering to contractual terms, reinforcing the principle of pacta sunt servanda (agreements must be kept). The CAS award dismissed Cruzeiro's appeal in its entirety, confirming the FIFA decision and requiring Cruzeiro to fulfill its payment obligations under the Transfer Agreement.