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2018 Football Contractual litigations Partially Upheld English Appeal Procedure

Parties & Representatives

Appellant Representative: Sami Dinc
Respondent: Sibiri Alain Traore
Respondent Representative: Riza Koklu

Arbitrators

President: Mark Hovell

Decision Information

Decision Date: September 18, 2018

Case Summary

The case revolves around a dispute between Kayserispor Kulübü Derneği (the Club) and professional footballer Sibiri Alain Traore (the Player) concerning unpaid salaries and the termination of their employment contract. The Player signed a contract with the Club on 12 August 2016, which stipulated his salary for the 2016/2017 and 2017/2018 seasons. However, the Club failed to meet its payment obligations, leading to significant delays and unpaid amounts. By April 2017, the Player had not received payments totaling EUR 145,000, prompting him to issue a formal notice demanding payment within ten days. The Club partially paid the overdue amount but still owed EUR 85,000, leading the Player to terminate the contract on 16 May 2017, citing just cause due to the Club's breach of contract.

The Player filed a claim with FIFA's Dispute Resolution Chamber (DRC), seeking unpaid salaries and compensation for breach of contract. The FIFA DRC ruled that the Club owed the Player EUR 35,000 in outstanding remuneration plus interest but rejected the claim for additional compensation, as the Player had mitigated his losses by securing a new contract with Al-Markhiya in Qatar. The Club appealed this decision to the Court of Arbitration for Sport (CAS), arguing that the Player lacked just cause to terminate the contract.

The CAS panel examined whether the Player had just cause to terminate the contract under FIFA's Regulations on the Status and Transfer of Players (RSTP). It considered three key criteria: the duration of the contractual violation, the overdue amount, and whether the Player had issued a warning. The Club's failure to pay the Player's salary for over three months and repeated late payments over six months constituted a substantial breach. The overdue amount exceeded two months' salary, and the Player had formally warned the Club, which failed to remedy the breach. These factors justified the Player's termination of the contract with just cause.

Regarding compensation, the CAS panel noted that while the Player was entitled to unpaid salaries, he could not claim additional compensation since he had mitigated his losses by signing a new contract with higher earnings. The panel upheld the FIFA DRC's decision, ordering the Club to pay the outstanding EUR 35,000 plus interest but rejecting further compensation. The Panel emphasized that the Club's breach was significant and that the Player acted reasonably in terminating the contract and securing alternative employment.

The Club contested the FIFA DRC's decision, arguing that the outstanding amount was significantly less than claimed and that the Player's termination was unjustified. It also disputed the classification of Turkish Lira (TL) payments as bonuses rather than salary deductions. The Player, however, provided evidence linking TL payments to specific match victories, reinforcing that these were discretionary bonuses unrelated to salary obligations. The Panel ultimately sided with the Player, confirming the validity of his termination and the Club's financial liabilities.

The CAS partially allowed the Club's appeal, canceling the CHF 75,000 compensation awarded by the FIFA DRC, as the Player had fully mitigated his losses. All other claims were dismissed, and the FIFA DRC's decision was amended accordingly. The case underscores the importance of timely salary payments and the consequences of failing to meet contractual obligations in sports law. It also highlights the role of arbitration in resolving complex disputes involving international sports contracts and payment issues. The decision reinforces the principle that clubs must fulfill their financial obligations to players, and players may terminate contracts with just cause in cases of substantial breaches.

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