The Court of Arbitration for Sport (CAS) ruled on a dispute between AFC Tubize and player Luo Xin, along with Chengdu Better City FC, regarding the termination of Luo Xin's employment contract. The case centered on whether the player had just cause to terminate his contract due to unpaid salaries. The tribunal applied FIFA Regulations on the Status and Transfer of Players (RSTP) as the primary legal framework, supplemented by Swiss law, to ensure uniform interpretation and avoid inconsistencies from varying national laws. The RSTP does not explicitly define "just cause," but its commentary suggests persistent contractual breaches, such as repeated non-payment of salaries, may justify unilateral termination. Swiss law similarly permits termination for just grounds if continued employment becomes untenable in good faith.
The dispute arose when Luo Xin, a Chinese player, signed a three-year contract with AFC Tubize in 2018. The contract stipulated fixed monthly salaries, payable by the seventh working day of the following month. By late 2019, the club faced financial difficulties and failed to pay salaries on time. The player issued formal notices demanding payment and eventually terminated the contract in February 2020, citing unpaid wages as a grave breach. He subsequently joined Chengdu FC. The club argued its financial restructuring excused the delays, but the tribunal rejected this, stating financial struggles cannot justify unpaid salaries. The player filed a claim with FIFA, which ruled in his favor, ordering the club to pay €47,000 in unpaid wages. The club appealed to CAS, disputing the validity of the termination and the compensation amount.
The tribunal upheld the FIFA decision, emphasizing that the player's termination was justified under Article 14 of the RSTP and Swiss law. The club's repeated failure to pay salaries, despite warnings, constituted just cause. The tribunal also addressed compensation, noting FIFA RSTP does not explicitly cover termination with just cause but applied Article 17 by analogy, considering the player's positive interest—what he would have earned had the contract been fulfilled. The player's earnings from his new club were deducted, resulting in a net compensation of approximately €60,615.23. However, the tribunal confirmed the original €47,000 award, as this was the amount the player initially claimed.
The ruling reinforces the primacy of FIFA regulations in international football disputes and underscores players' rights to terminate contracts for just cause, particularly in cases of unpaid salaries, regardless of a club's financial situation. It also clarifies the legal framework for calculating compensation, balancing contractual stability with fairness for both parties. The decision highlights the importance of adhering to contractual obligations and the consequences of failing to meet them, ensuring players are not forced to endure unpaid employment due to a club's financial mismanagement. The case serves as a precedent for similar disputes, emphasizing the need for clubs to fulfill their financial commitments to players.