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2020 Football Contractual litigations Dismissed English Appeal Procedure

Parties & Representatives

Arbitrators

President: John-Paul Mowberry

Decision Information

Decision Date: April 26, 2021

Case Summary

The case involves a dispute between Trabzonspor A.S., a Turkish football club, and Esteban Alvarado Brown, a professional football player from Costa Rica, along with his former club, Liga Deportiva Alajuelense. The dispute arose from the termination of the player's employment contract with Trabzonspor, which the player claimed was justified due to the club's failure to meet payment obligations. The Court of Arbitration for Sport (CAS) examined the contractual and legal aspects of the case to determine whether the player had just cause to terminate the contract. The player had signed two employment contracts with Trabzonspor, the second of which included clauses allowing termination if the club failed to pay salaries for two consecutive months or if the player participated in fewer than ten official games in a season. In May 2018, the parties entered into a Settlement Agreement after the club failed to pay overdue amounts, agreeing to settle the debt in installments. However, the club defaulted on these payments, prompting the player to issue a default notice in November 2018, giving the club 30 days to pay the outstanding sum of €490,000. The club only made a partial payment of €110,000. WhatsApp exchanges between the player's attorney and the club's general manager revealed discussions about the player's dissatisfaction and intent to terminate the contract if payments were not made by a specified date. Despite assurances from the club, the player proceeded with the termination, leading to the legal dispute. The CAS panel analyzed the termination under Swiss law, concluding that the player had valid grounds to terminate the contract due to the club's persistent failure to meet its financial obligations. The panel emphasized the importance of adherence to contractual terms and the legal consequences of non-compliance in professional sports contracts. Trabzonspor filed a claim with FIFA's Dispute Resolution Chamber (DRC), seeking compensation for the alleged breach, but the DRC ruled in favor of the player, ordering the club to pay the outstanding €450,000 plus interest and an additional €420,000 as compensation for breach of contract. The DRC found no evidence of a binding agreement to extend payment deadlines and concluded the player had just cause for termination. Trabzonspor appealed to CAS, arguing that the termination was premature and that WhatsApp messages constituted an agreement to extend the payment deadline. The CAS panel rejected this argument, finding no clear evidence of mutual intent to modify the deadline. The panel upheld the DRC's decision, confirming the player's right to terminate the contract due to the club's financial default and dismissing the club's claims of breach or abuse of rights. The CAS ruling concluded that the termination was justified, and no compensation was owed to the club. The decision underscored the importance of clear contractual terms and timely payments in employment agreements within professional sports.

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