The Court of Arbitration for Sport (CAS) issued an award on 12 November 2020 in the dispute between Club Al Arabi SC and Ashkan Dejagah, addressing key legal principles in football-related employment contracts. The case centered on the termination of Dejagah's contract, unpaid salaries, and jurisdictional coordination between state courts and sports adjudication bodies. The panel, consisting of Mr. Frans de Weger, Mr. Mark Hovell, and Mr. Jan Räker, examined issues such as the validity of liquidated damages clauses and the concept of just cause for contract termination. The dispute arose from an employment contract signed in 2014, which stipulated salary payments and termination clauses. The club failed to pay Dejagah's salaries starting in April 2016 and deregistered him from the Qatar Football Association (QFA), preventing him from playing. Despite the club's acknowledgment of the debt and promises to pay, no resolution was reached. Dejagah exercised his right to unilaterally extend the contract for another year and demanded payment of outstanding salaries, threatening termination if unpaid. When the club failed to comply, Dejagah terminated the contract in January 2017. The club filed a claim in Qatari Civil Courts seeking EUR 30 million for breach of contract, while Dejagah filed a claim with FIFA's Dispute Resolution Chamber (DRC) for unpaid salaries and compensation. The FIFA DRC ruled in favor of Dejagah, ordering the club to pay EUR 1 million in outstanding salaries and EUR 3.4 million as compensation for breach of contract. The club appealed to CAS, which upheld the FIFA DRC's decision but adjusted the compensation amount to EUR 3,438,710, combining outstanding salaries and compensation. The CAS panel rejected the club's argument that the FIFA DRC lacked jurisdiction due to parallel proceedings in Qatari courts, finding no "serious reasons" to stay the CAS proceedings. The panel also determined that Dejagah had just cause to terminate the contract due to the club's failure to pay salaries and deregister him, which constituted a material breach of contract. The panel emphasized that non-payment or late payment of salaries, especially if repeated, typically justifies termination, as it undermines the employer's primary obligation. The club's claim that it was working to resolve payment issues did not exempt it from contractual duties. The panel also addressed the validity of a liquidated damages clause in the contract, which the FIFA DRC had deemed unfair. While the CAS panel disagreed with the DRC's reasoning, it upheld the compensation amount based on the residual value of the contract and other objective criteria. The panel noted that CAS could not award more than what was granted by the FIFA DRC unless an independent appeal was filed, which Dejagah had not done. The club was ordered to pay the adjusted amounts with 5% annual interest, and all other claims were dismissed. The case underscores the importance of contractual obligations, jurisdictional clarity, and procedural fairness in resolving football-related disputes. It also highlights the balance between contractual stability and the right to terminate for valid reasons, reinforcing established legal principles in sports employment relationships.