The case involves a dispute between Portuguese footballer Manuel Henrique Tavares Fernandes and Russian football club FC Lokomotiv Moscow, adjudicated by the Court of Arbitration for Sport (CAS). The dispute centered on unpaid salaries and bonuses under Fernandes' employment contract, with key issues including applicable law, statute of limitations, exchange rate determination, and alleged discriminatory bonus payments. The CAS panel, composed of Alexander McLin, João Nogueira da Rocha, and Frans de Weger, ruled in favor of Fernandes, ordering the club to pay outstanding remuneration and bonuses.
The panel clarified the legal framework, emphasizing that FIFA Regulations take precedence under Article R58 of the CAS Code, with Swiss law governing interpretation and Russian law applying subsidiarily to unresolved matters like salary calculations. The statute of limitations was a critical issue, with FIFA imposing a two-year limit for claims. The panel determined that claims must be filed within two years from the date the debt became due, not from the dispute's initiation. Fernandes argued that payments should be allocated to the oldest debt first under Swiss law, leaving a deficit in May 2015, which fell within the limitation period. The panel agreed, rejecting the club's argument that the claim was time-barred.
The dispute also involved the exchange rate for converting Fernandes' euro-denominated salary to Russian rubles. The contract referenced the "day of charge" but did not define it. Fernandes provided evidence that Russian law designates the last day of each month as the charge date, and the club failed to contest this, leading the panel to accept his interpretation. The club's failure to provide detailed payslips further complicated verification of payments. The panel ruled that Fernandes was owed RUB 6,747,918.30 in unpaid salaries due to incorrect exchange rate applications and irregular payment schedules.
Fernandes also claimed discrimination in bonus payments, arguing he was denied a team bonus for winning the 2014-2015 Russian Cup despite playing key matches. The club claimed bonuses were discretionary, but the panel found this justification insufficient, especially as teammates received higher bonuses. The panel cited Russian labor law, which mandates equal pay for equal work, and ruled the club's actions discriminatory. Fernandes was awarded RUB 4,350,000 in unpaid bonuses, aligning with payments to teammates.
The panel awarded interest at 5% per annum from July 25, 2015, the date Fernandes first summoned the club, totaling RUB 11,097,918.30 plus interest. The CAS emphasized the importance of clear contractual terms, timely claims, and equitable treatment under labor law. The decision overturned the earlier ruling by FIFA's Dispute Resolution Chamber, concluding the case in Fernandes' favor and dismissing all other claims. The case highlights the complexities of international sports contracts and the need for adherence to legal and contractual obligations.