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2020 Football Contractual litigations Partially Upheld English Appeal Procedure

Arbitrators

President: Cesare Gabasio

Decision Information

Decision Date: April 30, 2021

Case Summary

The case involves a contractual dispute between Beşiktaş Futbol Yatirimlari Sanayi ve Ticaret A.S. (the Club) and José María Gutiérrez Hernández (the Coach), with FIFA as the regulatory body. The dispute arose from the termination of the Coach's employment contract, signed in July 2018 and valid until June 2020, which stipulated an annual net salary of EUR 300,000, bonuses, and rent support. A key clause allowed the Coach to terminate the contract with just cause if the Club failed to make payments for over 60 days without rectifying the default within 15 days of written notice. The Coach terminated the contract in March 2019, citing unpaid salaries and bonuses, and sought compensation for the remaining contract period. The Club argued the non-payment was unintentional and that the Coach's subsequent employment mitigated damages.

The FIFA Players’ Status Committee (PSC) ruled in favor of the Coach, ordering the Club to pay outstanding remuneration and breach-of-contract compensation. The Club appealed to the Court of Arbitration for Sport (CAS), contesting the amounts and FIFA's involvement. The CAS Sole Arbitrator upheld the FIFA decision, ruling that the Club's lack of intent did not absolve liability and that the Coach's new employment did not negate compensation, as the contract allowed for deductions if he secured new work. The Arbitrator also dismissed the Club's argument against FIFA's participation, noting FIFA's role was administrative, not adversarial.

The CAS partially upheld the appeal, adjusting the compensation amount to exclude rent support, as it was distinct from salaries and bonuses under the contract. The Club was ordered to pay EUR 2,240.85 for late payment of outstanding remuneration and EUR 164,400 for breach of contract, plus 5% annual interest. The CAS dismissed requests for procedural cost reimbursement, emphasizing FIFA's lack of standing in the dispute. The ruling reinforced contractual obligations in football employment, highlighting that breaches incur liability regardless of intent, and clarified FIFA's limited role in such disputes unless sanctions are imposed. The final decision underscored the importance of adhering to contractual terms and procedural fairness in arbitration.

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