The case before the Court of Arbitration for Sport (CAS) involved AFC Tubize, a Belgian football club, and Mu Yiming, a Chinese professional footballer, along with Chengdu Better City FC. The dispute arose from Mu Yiming's unilateral termination of his employment contract with AFC Tubize, which he justified on the grounds of just cause due to the club's repeated failure to pay his salaries. The central legal issues revolved around the interpretation of "just cause" under FIFA's Regulations on the Status and Transfer of Players (RSTJ) and Swiss law, as well as the financial consequences of such termination. The CAS emphasized that FIFA regulations take precedence in international football disputes, with Swiss law serving as a subsidiary framework. The tribunal clarified that national laws could only be considered for aspects not covered by FIFA rules, ensuring uniform application of football regulations globally. The case underscored that financial or administrative difficulties of a club cannot justify non-payment of salaries, as this would undermine the player's right to terminate the contract for just cause under Article 14 of the RSTJ. The tribunal noted that the spirit of FIFA regulations is to allow players to leave unpaid clubs without facing penalties, even if the club is undergoing judicial reorganization.
Mu Yiming had signed a three-year contract with AFC Tubize in 2018, with stipulated monthly salaries. The club failed to pay his salaries on multiple occasions, leading Mu Yiming to issue formal notices in 2019 and 2020. When the club still did not comply, he terminated the contract and joined Chengdu Better City FC. The CAS ruled in favor of Mu Yiming, affirming his right to terminate the contract for just cause and awarding him compensation for unpaid salaries and damages, while dismissing the club's counterclaims. The decision reinforced the principle that clubs must fulfill their financial obligations to players, and players have the right to seek redress for contractual breaches. The tribunal also addressed the financial implications of the termination, applying Article 17 of the RSTJ by analogy to award compensation for the player's positive interest, reflecting what he would have earned had the contract been fulfilled, minus any earnings from subsequent employment.
AFC Tubize argued that Mu Yiming's termination was unjustified, claiming he had waived his right to unilateral termination by continuing to play and that the club's financial difficulties, including a judicial reorganization plan, excused the non-payment. The club also alleged collusion between Mu Yiming and Chengdu FC to avoid transfer fees. However, the tribunal dismissed these arguments, noting that the player's continued performance did not waive his right to terminate and that the club's financial woes did not absolve it of its contractual obligations. The tribunal found that the club's failure to pay at least seven months of salaries, despite warnings, constituted just cause for termination under both FIFA regulations and Swiss law.
The final ruling rejected AFC Tubize's appeal and confirmed the decision of the FIFA Dispute Resolution Chamber, ordering the club to pay Mu Yiming EUR 47,000 in unpaid salaries and dismissing all other claims. The case highlights the legal protections for players in cases of contractual breaches by clubs and underscores the importance of adhering to financial obligations in professional football. The decision ensures uniformity in applying football's regulatory framework while addressing the parties' arguments and upholding the player's rights.