The case involves a dispute between the Sabah Football Association (the Club) and professional football player Igor Cerina (the Player) regarding the termination of an employment contract, adjudicated by the Court of Arbitration for Sport (CAS). The conflict arose from unpaid allowances and breaches of contractual obligations. The Club initially acknowledged its duty to pay the Player MYR 233,600 in outstanding allowances by June 20, 2018, as per an annex to the termination contract. When the payment was not made, the Player’s attorney sent a notice threatening legal action. Subsequently, the Club expressed intent to rehire the Player, leading to negotiations for a new contract (the Third Contract), signed on September 3, 2018, valid from December 1, 2018, to November 30, 2019. This contract included a monthly salary of MYR 20,000 and additional benefits, contingent on the Player passing a medical examination.
The Player underwent a medical check in Croatia and was declared fit. Upon arriving in Malaysia, he began training with the Club. However, disputes resurfaced when the Club failed to pay the outstanding MYR 233,600 and did not allow the Player to train with the First Team as stipulated. The Player’s attorney sent multiple notices demanding payment and fulfillment of contractual obligations. A medical report confirmed the Player’s fitness, but the Club insisted on another examination. The Club later offered a cheque for the outstanding amount but attached conditions barring further claims, which the Player rejected.
On January 17, 2019, the Player terminated the Third Contract unilaterally, citing the Club’s breaches under FIFA regulations. He filed a claim with the FIFA Dispute Resolution Chamber (DRC) on March 1, 2019, seeking payment of the outstanding MYR 233,600 with interest, compensation for breach of contract, and reimbursement for an air ticket. The FIFA DRC partially accepted the claim, ordering the Club to pay MYR 49,200 plus interest, the outstanding MYR 233,600 with interest, CHF 900, and MYR 541,200 as compensation for breach of contract. Failure to pay within 45 days would result in a ban on registering new players.
The Club appealed the FIFA DRC decision to CAS, contesting the validity of the Third Contract, arguing procedural flaws such as lack of proper witnessing of signatures, unclear dates, and discrepancies in the club's stamp. The Player defended the contract's validity, stating it followed the same template and signing process as previous contracts. The CAS upheld the FIFA DRC’s decision, ruling the Third Contract valid and binding. The Sole Arbitrator dismissed the Club’s arguments, noting the Club’s president signed the contract, and the absence of a witness or full date did not invalidate it under Swiss law or CAS jurisprudence.
The CAS concluded the Player had just cause to terminate the contract due to the Club’s material breaches, including unpaid salaries and preventing the Player from training. The Player was entitled to unpaid salary for December 2018 (MYR 49,200) plus late payment interest, and compensation for the remaining contract value (MYR 220,000) and additional allowances (MYR 321,200). The Club’s sporting sanctions, including a registration ban for unpaid dues, were upheld. The CAS dismissed the Club’s appeal in its entirety, confirming the FIFA DRC’s decision and reinforcing the principle of contractual obligations in sports disputes. The ruling underscores the importance of adhering to contractual commitments and the role of arbitration in resolving such conflicts.