The case between Al Hilal Khartoum Club and Mohamed El Hadi Boulaouidat involved a dispute over the termination of an employment contract and the subsequent compensation owed to the player. The Court of Arbitration for Sport (CAS) rendered its award on 23 March 2021, upholding the decision of the FIFA Dispute Resolution Chamber (DRC). The dispute centered on the unilateral termination of the contract by Al Hilal in October 2019 without just cause, as low performance was deemed insufficient grounds under FIFA regulations. The FIFA DRC had ruled that the club owed the player USD 7,000 for unpaid salary and USD 63,000 as compensation for breach of contract, calculated under Article 17 of the FIFA Regulations on the Status and Transfer of Players (RSTP).
The contract included a clause stipulating compensation of USD 10,000 if the club terminated without cause and USD 100,000 if the player did so. The player argued this clause was unbalanced and disproportionately favored the club, rendering it invalid. The CAS Sole Arbitrator agreed, citing established jurisprudence that such one-sided clauses undermine contractual stability and fairness. Consequently, the compensation was assessed under Article 17 RSTP, which considers factors like the remaining contract value and the injured party's positive interest—restoring them to the position they would have been in had the contract been fulfilled. The arbitrator confirmed the FIFA DRC’s calculation of USD 63,000, noting the player had not secured alternative employment during the relevant period, meaning no mitigation of damages occurred.
Al Hilal appealed the FIFA DRC’s decision, arguing the compensation was disproportionate and that the contractual clause should prevail. The club also raised procedural objections and claimed external factors like financial sanctions on Sudan hindered payment. These arguments were dismissed as unsubstantiated. The arbitrator emphasized that contractual freedom must not override principles of fairness and reciprocity, particularly in employment disputes. The CAS upheld the FIFA DRC’s ruling, affirming the compensation as reasonable and proportionate, and rejected all additional motions by the club. The case underscores the importance of balanced contractual terms and the enforceability of FIFA regulations in resolving employment disputes in football. The award finalized the matter, with Al Hilal required to pay the awarded amounts.