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2018 Football Transfer Dismissed FR Appeal Procedure

Parties & Representatives

Appellant: Wydad Athletic Club
Appellant Representative: Tarik Mossadek; Mohamed Ghazi
Respondent Representative: Jan Schweele

Arbitrators

President: François Klein

Decision Information

Decision Date: July 1, 2019

Case Summary

The case before the Court of Arbitration for Sport (CAS) involved a dispute between Wydad Athletic Club (WAC) and Association Omnisports Centre Mbérie Sportif (AO CMS) regarding a football player transfer agreement. The dispute centered on the interpretation of a resale clause in the contract signed on September 19, 2013, which stipulated that WAC would pay AO CMS a fixed sum of $100,000 and 15% of any future transfer value exceeding the initial payments. The player was later transferred from WAC to Al Ahly for $2 million in 2015, with a clause entitling WAC to 10% of any resale above $2 million. In 2016, the player was transferred from Al Ahly to Tianjin Teda FC for $8 million, payable in two installments. AO CMS claimed 15% of the total transfer value received by WAC, minus the initial $100,000, amounting to $375,000, plus interest at 5% per annum from the respective transfer dates. The FIFA Dispute Resolution Chamber ruled in favor of AO CMS, and WAC appealed to CAS, arguing the resale clause applied only to the initial transfer and contesting the interest calculation.

The CAS upheld the FIFA decision, confirming the resale clause applied to all subsequent transfers, not just the initial one, and that AO CMS was entitled to the agreed percentage. The arbitrator referenced the transfer agreement between WAC and Al Ahly, which included both fixed and variable components tied to future resales, reinforcing the clause's applicability to multiple transfers. Regarding interest, the CAS applied Swiss law (Article 104 of the Swiss Code of Obligations), which mandates a 5% annual interest rate on overdue payments in the absence of contractual stipulations. The arbitrator determined specific due dates for the payments: July 15, 2015, for the fixed fee; July 20, 2016, for the first installment of the variable fee; and December 20, 2016, for the second installment. Interest was calculated from these dates until full payment.

WAC's procedural arguments, including jurisdiction and admissibility of the appeal, were dismissed. The CAS confirmed its authority under FIFA statutes and the timely filing of the appeal. The arbitrator rejected WAC's claim to limit the respondent's share to $285,000 and upheld the full amount of $375,000 with interest. The decision reinforced the binding nature of transfer agreements and the role of arbitration in resolving such disputes. It also highlighted the importance of precise contractual drafting in sports law and the application of supplementary legal frameworks like Swiss law when contracts lack specific terms. The CAS dismissed WAC's appeal entirely, upheld the FIFA decision, and ordered WAC to bear all arbitration costs, including a contribution of CHF 8,000 for legal expenses. The ruling was issued on July 1, 2019, concluding the dispute in favor of AO CMS.

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