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2019 Football Transfer Dismissed English Appeal Procedure

Arbitrators

President: Ulrich Haas

Decision Information

Decision Date: August 26, 2022

Case Summary

The Court of Arbitration for Sport (CAS) issued an award on August 26, 2022, resolving a dispute between Cardiff City Football Club (CCFC) and FC Nantes concerning the transfer of footballer Emiliano Sala, who tragically died in a plane crash in January 2019. The case centered on whether the conditions precedent in the transfer agreement were met, obliging CCFC to pay FC Nantes a transfer fee of €17 million, and whether FC Nantes bore any responsibility for Sala's death, which CCFC argued should offset its payment obligations. The CAS panel, composed of Prof. Ulrich Haas, Mr. Andrew de Lotbinière McDougall QC, and Mr. Nicholas Stewart QC, examined jurisdictional, contractual, and procedural issues.

The dispute arose from a transfer agreement signed on January 19, 2019, just days before Sala's death. FIFA's Players' Status Committee had previously ruled in September 2019 that the transfer conditions were fulfilled, ordering CCFC to pay an initial €6 million installment. CCFC appealed, contending the conditions were unfulfilled and seeking to offset damages due to FC Nantes' alleged negligence in arranging the fatal flight. FC Nantes maintained the transfer was valid and denied liability, arguing the flight was independently organized by intermediaries.

The CAS panel addressed jurisdictional questions, concluding it lacked authority over CCFC's tort claim, as FIFA's dispute resolution bodies are limited to contractual matters. The panel emphasized that sports arbitration cannot adjudicate civil liability claims, which fall under national courts. It also rejected CCFC's argument for set-off, finding no close connection between the contractual and tort claims under applicable law. Procedurally, the panel dismissed CCFC's requests to stay proceedings pending criminal investigations, prioritizing efficiency and the distinct nature of the arbitration.

On the substantive issue, the panel upheld FIFA's decision, ruling all transfer conditions were met. It found the termination of Sala's contract with FC Nantes was mutually agreed and registered with the French Football Federation, fulfilling the agreement's requirements. The panel rejected CCFC's interpretation that Premier League registration was a condition, noting the agreement only required registration with the Football Association of Wales, which was completed. The panel dismissed CCFC's additional arguments, such as alleged contractual breaches, as unsubstantiated.

Ultimately, the CAS affirmed CCFC's obligation to pay the €6 million installment plus 5% annual interest from January 27, 2019, and upheld FIFA's rejection of the set-off claim. The appeal was dismissed, and all other motions were denied, concluding the legal dispute. The decision underscores the primacy of contractual terms in football transfers and the jurisdictional limits of sports arbitration in addressing extra-contractual claims.

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