The case involves a legal dispute between Cruzeiro Esporte Clube, a Brazilian football club, and Ramón Darío Ábila, an Argentinian football player, with FIFA as the governing body. The conflict arose from the termination of an employment contract between Cruzeiro and Ábila, initially valid from August 2016 to June 2018 but mutually terminated in July 2017. Following the termination, the parties signed an agreement in August 2017, where Cruzeiro acknowledged owing Ábila R$ 749,905.09 and agreed to pay this amount in five installments. While the first installment was paid, Cruzeiro failed to pay the remaining four, prompting Ábila to send a default notice in September 2018.
Ábila filed a claim with FIFA’s Dispute Resolution Chamber (DRC) in October 2018, seeking the unpaid amount of BRL 599,924 plus 15% annual interest. The DRC ruled partially in Ábila’s favor in June 2019, ordering Cruzeiro to pay the outstanding amount with 5% annual interest starting from the due dates of each installment and imposing a registration ban if payment was not made within 45 days. Cruzeiro appealed to the Court of Arbitration for Sport (CAS) in August 2019, challenging the interest calculation and procedural aspects of the DRC’s decision. The CAS panel, composed of arbitrators from Chile, Guatemala, and Spain, reviewed the case under Swiss law and upheld the DRC’s decision.
The panel emphasized that under Article 102.2 of the Swiss Code of Obligations, interest accrues automatically from the day following the due date when a payment deadline is agreed upon. It confirmed the 5% interest rate and maintained the DRC’s sanctions, including the potential registration ban. Cruzeiro argued that interest should accrue from the notification of the DRC decision or the last installment’s due date, but the panel rejected these claims, citing established CAS jurisprudence and the principle of "pacta sunt servanda" (agreements must be kept). The panel also dismissed Cruzeiro’s allegations of procedural deficiencies, noting the DRC’s decision was sufficiently clear and consistent with prior cases.
The CAS ultimately dismissed Cruzeiro’s appeal, upholding the DRC’s decision in full. The ruling reinforced the enforcement of contractual obligations in football employment disputes and the role of FIFA and CAS in resolving such conflicts. It confirmed that default interest accrues from the day after the due date, aligning with Swiss law and CAS precedent. The case underscores the consequences of non-compliance with financial obligations in professional football and the importance of adhering to contractual deadlines. The decision ensured Ábila received the outstanding remuneration with applicable interest, closing the dispute in his favor.