The Court of Arbitration for Sport (CAS) ruled on a contractual dispute between Club Sportif Sfaxien (CSS) and football coach Nebojsa Jovovic, stemming from CSS's unilateral termination of Jovovic's employment contract. The contract, signed in 2019, stipulated a two-year term with specific salary, bonus, and termination clauses. CSS terminated the contract in September 2019, leading Jovovic to seek compensation for unpaid salaries, bonuses, and wrongful termination. The case progressed through FIFA's Players’ Status Committee, which initially ruled in Jovovic’s favor, awarding him unpaid wages and compensation for breach of contract. CSS appealed to CAS, contesting the validity of the termination clause and the awarded amounts.
The CAS arbitrator examined the contract’s termination clause, which allowed unilateral termination with a one-month notice period and a penalty of three months' salary. The arbitrator upheld the clause’s validity under Swiss law, noting that contractual penalties need not be reciprocal, as the financial impact on a club and a coach differs. CSS’s termination was deemed effective one month after notice, obligating CSS to pay the stipulated penalty. The arbitrator also addressed financial disputes, including a $90,000 payment CSS claimed was an advance on salary, while Jovovic argued it was a signing bonus. The arbitrator ruled it was an advance, not a bonus, based on the contract’s wording. However, Jovovic was awarded a $20,000 bonus for CSS’s Tunisian Cup victory, as the contract did not explicitly limit bonuses to specific seasons.
The final calculation of owed amounts included unpaid salaries, the three-month termination penalty, and the Tunisian Cup bonus, totaling $152,822. After deducting the $96,154 advance Jovovic had received, CSS was ordered to pay the remaining $56,668 plus 5% annual interest from December 23, 2019. The CAS partially upheld CSS’s appeal, reducing the original FIFA award but confirming Jovovic’s entitlement to the bonus and termination penalty. The ruling emphasized the importance of contractual clarity and the enforceability of mutually agreed termination clauses in sports employment disputes. The decision serves as a precedent for similar cases, reinforcing the principles of contractual interpretation under Swiss law and the autonomy of parties in negotiating termination terms. The case concluded on May 31, 2021, with CSS obligated to fulfill the financial award as determined by the CAS.