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2020 Football Contractual litigations Partially Upheld English Appeal Procedure

Parties & Representatives

Appellant: Milos Jokic
Appellant Representative: Filip Blagojevic
Respondent: PAS Lamia 1964
Respondent Representative: Panagiotis Katsantonis

Arbitrators

President: Manfred Peter Nan

Decision Information

Decision Date: February 3, 2021

Case Summary

The Court of Arbitration for Sport (CAS) issued a ruling on February 3, 2021, in the dispute between professional football player Milos Jokic and PAS Lamia 1964, concerning the breach of a pre-contract agreement. The case originated from a 2016 pre-contract stipulating that if the club promoted to the Greek Super League for the 2017/2018 season, Jokic would receive an annual salary of €90,000. The club achieved promotion but refused to honor the agreement, leading Jokic to seek compensation. The FIFA Dispute Resolution Chamber (DRC) initially declared the claim inadmissible, prompting Jokic to appeal to CAS. The CAS panel, led by Sole Arbitrator Manfred Nan, addressed key legal issues, including the jurisdiction of FIFA's DRC, the distinction between pre-contracts and final contracts, and the compensation for damages resulting from the breach. The panel clarified that CAS had the authority to review the DRC's jurisdictional decision even without FIFA as a party, as the dispute involved indirect members of FIFA. The arbitrator determined that the pre-contract was not a definitive employment contract but a reciprocal commitment to negotiate a future contract in good faith. The club breached this obligation by refusing to negotiate without justification, acting in bad faith. However, damages were moderated due to uncertainties about whether a final agreement would have been reached and Jokic's successful mitigation by securing other employment. The panel awarded Jokic €27,000 in compensation, comprising two months' salary for unemployment and an additional sum to account for the salary disparity, plus 5% annual interest from the claim filing date. The ruling underscored the binding nature of pre-contracts in football, albeit with moderated liability compared to final contracts, and reaffirmed CAS's authority to review jurisdictional and substantive disputes. The decision highlights the importance of good faith negotiations and contractual stability in football, while balancing compensation with the speculative nature of pre-contract obligations. The CAS partially upheld Jokic's appeal, set aside the FIFA DRC's decision, and dismissed all other claims, finalizing the dispute.

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