The case revolves around a contractual dispute between Al-Ittihad Alexandria Union Club and professional football player Luis Carlos Almada Soares. The player signed a fixed-term contract with the club for the 2015/2016 season, entitling him to a total remuneration of USD 188,976, payable in four installments. The club made an initial payment of USD 10,000, claiming it was the net salary after deducting taxes and fees, which the player disputed. The club later admitted these deductions were made without the player’s express authorization. In November 2015, the player left Egypt to join his national team and returned to participate in a match on November 26. After being granted six days off, he left Egypt again. On December 2, the player sent a default notice to the club, demanding payment of the outstanding USD 37,244 from the first installment and warning of contract termination if unpaid. When the club failed to comply, the player terminated the contract on December 7, citing just cause due to non-payment.
The player filed a claim with FIFA, seeking USD 178,976 for unpaid wages and compensation for the remaining contract value. The club counterclaimed for USD 50,000, alleging it had paid taxes and fees on the player’s behalf. The FIFA Dispute Resolution Chamber ruled in favor of the player, finding the club failed to justify the deductions and that the non-payment constituted just cause for termination. The club appealed to the Court of Arbitration for Sport (CAS), which upheld the FIFA decision. The CAS emphasized that under Swiss law, just cause for termination exists when a party cannot reasonably continue the employment relationship due to significant breaches, such as non-payment of wages. The player’s financial situation due to non-payment was deemed irrelevant, and the club’s deductions were found unauthorized. The CAS also noted the club’s inconsistent evidence and lack of transparency, failing to substantiate its claims with proper documentation.
The club argued the player breached the contract by missing training sessions and leaving Egypt without permission, but the Sole Arbitrator found these allegations unsupported by credible evidence. The player maintained he had fulfilled his contractual duties and left with the club’s knowledge. The CAS concluded the club’s failure to pay wages and lack of response to the player’s default notice justified the termination. The club’s appeal was dismissed, and the FIFA DRC’s decision was confirmed in its entirety, ordering the club to compensate the player as originally determined. The final award, issued on August 14, 2019, reinforced the principle that employers must fulfill payment obligations to avoid justified contract terminations, highlighting the importance of contractual stability and transparency in professional sports.