The case revolves around a dispute involving Hertha BSC Berlin, Club Atlético River Plate, RCD Mallorca, and a professional footballer referred to as G. The central issue concerns the interpretation of an employment contract and an additional agreement between Hertha and G., as well as alleged breaches of FIFA regulations regarding player transfers. G., an Argentine national, had a contract with River Plate expiring on June 30, 2004. On January 6, 2004, he signed a pre-contract with Hertha, effective from July 1, 2004, to June 30, 2009, along with an Additional Agreement. However, on January 31, 2004, G. also signed an employment contract with RCD Mallorca, which took immediate effect and lasted until June 30, 2008. RCD Mallorca paid River Plate a $1 million transfer fee for G.'s registration.
Hertha filed a complaint with the FIFA Dispute Resolution Chamber (DRC) upon learning of G.'s transfer to RCD Mallorca. River Plate accused Hertha of violating Article 13 of the FIFA Regulations for the Status and Transfer of Players by approaching G. without River Plate's permission. The DRC rejected Hertha's complaint and fined Hertha CHF 50,000 for breaching Article 13. Hertha appealed to the Court of Arbitration for Sport (CAS), which addressed two main issues: whether Hertha violated Article 13 by failing to inform River Plate before negotiating with G. (the Negotiations Issue) and the correct interpretation of the Additional Agreement (the Construction Issue).
The CAS panel ruled that Hertha breached Article 13 by not informing River Plate before negotiating with G., rejecting Hertha's argument that the regulation should not apply to players in the last six months of their contract. The panel emphasized the clear wording of the regulation, which applies to any approach to a contracted player. Regarding the Additional Agreement, the panel focused on its conditions, including G.'s release from River Plate without a transfer fee and Hertha's participation in the 1.Bundesliga for the 2004/2005 season. The panel concluded that G.'s transfer to RCD Mallorca invalidated the agreement, as the conditions were not met.
Hertha relied on a "Declaration" signed by G., stating he had no legal bonds with other clubs as of July 1, 2004, but the panel found this document irrelevant, as it merely confirmed G.'s contractual status at that time. The panel also dismissed Hertha's claim that River Plate and RCD Mallorca breached Article 23 of the FIFA Statutes, affirming both clubs acted lawfully. The panel noted G.'s conduct, while legally permissible, was ethically questionable, as he negotiated with Hertha but ultimately ignored the agreement.
The CAS dismissed Hertha's appeal, upholding the DRC's decision and the CHF 50,000 fine. The ruling reinforced the importance of adhering to FIFA's transfer regulations to maintain contractual stability in football, emphasizing that clubs must follow proper procedures when engaging with players under contract with other clubs, regardless of the remaining contract duration. The panel's decision was based on the unambiguous language of the agreements and Hertha's failure to comply with regulatory obligations.