The case involves a contractual dispute between Club X and Coach Z, adjudicated by the Court of Arbitration for Sport (CAS), with FIFA as a secondary respondent. The dispute arose from the termination of Coach Z's employment contract, which was signed on 1 July 2019 and valid until 1 July 2020, with a total salary of USD 850,000 payable in installments. The contract included performance-based bonuses and detailed termination clauses specifying financial consequences for termination by either party during different periods of the season. Club X terminated the contract, leading to disagreements over unpaid salaries, bonuses, and the interpretation of contractual terms, particularly the definition of "mid-season" and the applicability of FIFA's Regulations on the Status and Transfer of Players (RSTP). The arbitrator clarified that the RSTP provisions apply only to players, not coaches, and focused on the contractual terms and principles of good faith.
Coach Z claimed unpaid salaries and bonuses, totaling over USD 450,000, and terminated the contract on 1 January 2020, citing Club X's breach of payment obligations. Club X countered by alleging Coach Z violated contractual duties, such as neglecting youth team supervision and making disparaging comments, and argued financial difficulties due to sanctions in their country affected payments. The case was initially heard by FIFA's Players' Status Committee, which ruled in favor of Coach Z, ordering Club X to pay outstanding remuneration of USD 329,500 plus interest and USD 250,000 as compensation for breach of contract. Club X appealed to CAS, disputing the decision and seeking relief from payment obligations.
The CAS proceedings involved procedural complexities, including debates over FIFA's involvement, language preferences, and consolidation of related cases. The sole arbitrator, Mr. Alain Zahlan de Cayetti, upheld the FIFA decision, ruling that Coach Z had just cause to terminate the contract due to Club X's persistent non-payment, which constituted a material breach under Swiss law. The arbitrator dismissed Club X's counterclaims due to lack of evidence and confirmed the coach's entitlement to unpaid salaries, bonuses, and compensation. The final award, issued on 31 May 2021, ordered Club X to pay the outstanding amounts with 5% annual interest and dismissed the appeal, reaffirming the principle of pacta sunt servanda (agreements must be kept) and the employer's obligation to fulfill payment terms. The case highlights the importance of contractual stability and the limited applicability of FIFA regulations to coaching disputes.