The case involves a dispute between Wydad Athletic Club (WAC), a Moroccan football club, and Souleymane Diarra, a Malian football player, along with Ujpest 1885 Futbal Kft, a Hungarian club. The conflict arose from the termination of Diarra's employment contract with WAC, primarily due to unpaid salaries and contractual breaches. Diarra claimed he had not received his fixed salaries or the balance of his signing bonus since January 2015, despite multiple requests. In July 2015, his agent informed FIFA and the Moroccan Football Federation (FRMF) of these breaches, citing unpaid wages and threats from an agent aligned with WAC. Diarra subsequently left a training camp in Lisbon, leading WAC to report his disappearance as a kidnapping. He later sent a letter confirming his intent to terminate the contract due to unpaid wages, unfulfilled promises, and delayed issuance of his residence permit. WAC contested these claims, arguing Diarra's participation in training sessions indicated his continued commitment to the club.
The dispute escalated when Diarra signed a new contract with Ujpest on 26 August 2015, prompting WAC to file a claim with FIFA's Dispute Resolution Chamber (DRC) in 2017, seeking €2,000,000 in compensation based on a release clause. The DRC declared the claim inadmissible in 2019, citing a two-year statute of limitations under FIFA regulations, as the dispute arose no later than July 2015. WAC appealed to the Court of Arbitration for Sport (CAS), arguing the dispute's start date should be when they became aware of Diarra's termination. The CAS emphasized that the "event giving rise to the dispute" under FIFA regulations refers to any alleged non-fulfilment of contractual obligations, not just formal termination. The arbitrator concluded the dispute existed by July 2015, making WAC's claim time-barred.
The CAS also examined whether Diarra had just cause to terminate his contract. CAS jurisprudence establishes that non-payment of salaries justifies unilateral termination. Diarra's loss of confidence in WAC's ability to meet financial obligations, coupled with the club's control over his passport and residency documents, supported his decision. WAC's argument that Diarra's return to training negated his termination intent was dismissed, as the arbitrator found his actions reasonable given the circumstances. The CAS upheld the DRC's decision, dismissing WAC's appeal and confirming the earlier ruling. The counterclaims by Diarra and Ujpest were deemed inadmissible. The case underscores the importance of clubs fulfilling financial obligations to players and highlights the complexities of contractual disputes in football, including procedural challenges and the balance between contractual stability and players' rights. The final award was issued on 14 May 2021.