The case involves a legal dispute between Dinamo 1948 S.A., a Romanian football club, and Jordan David Mustoe, a British football player, concerning the termination of their employment contract. The contract, signed on 15 January 2019, was set to expire on 30 June 2020. On 19 March 2019, the club's coach informed Mustoe he was no longer needed, leading to negotiations for termination. The club claimed a termination agreement was signed on 25 March 2019, but Mustoe denied signing it, alleging the club unilaterally terminated the contract without just cause. The club paid Mustoe a small sum and later provided a copy of the alleged termination agreement, which Mustoe contested as forged.
Mustoe filed a claim with FIFA on 4 April 2019, seeking compensation for breach of contract. The club failed to respond within the deadline, submitting its reply late on 17 June 2019, arguing a settlement agreement existed. FIFA's Dispute Resolution Chamber (DRC) partially accepted Mustoe's claim, noting the club's late submission and lack of evidence for the termination agreement. The DRC ruled the club terminated the contract without just cause, ordering payment of unpaid salary for March 2019 (€5,000) and compensation of €47,500 under Article 17 of FIFA's Regulations on the Status and Transfer of Players (RSTP).
The club appealed to the Court of Arbitration for Sport (CAS), contesting the FIFA DRC's decision. The CAS panel examined the authenticity of the termination agreement, emphasizing that under Swiss law, a party invoking a document must prove its authenticity if contested with substantiated objections. The panel found the club failed to adequately prove the agreement's authenticity. Mustoe and his agents testified that the club never contacted them to discuss termination, and Mustoe claimed he had no reason to terminate the contract without compensation. The club argued Mustoe agreed to termination and received due payments, but the CAS found their evidence insufficient.
The CAS upheld the FIFA DRC's decision, ruling the club unlawfully terminated the contract and must pay compensation. The decision applied the "positive interest" principle, aiming to place Mustoe in the position he would have been in had the contract been fulfilled. Compensation was calculated by comparing the remaining value of the original contract (€93,000) with Mustoe's earnings from a subsequent contract (€45,500), resulting in a net compensation of €47,500. The club was also ordered to pay €968 in outstanding wages, both amounts subject to 5% annual interest from April 2019 until payment.
The CAS dismissed the club's appeal, reinforcing the importance of contractual fidelity in football and the need for fair compensation when breaches occur. The ruling underscores the unpredictability of financial consequences for unilateral contract terminations, serving as a deterrent against bad-faith conduct in football contracts. The decision highlights the procedural complexities and legal framework governing such disputes, emphasizing the roles of FIFA and CAS in adjudicating employment matters in football.