The case involves a contractual dispute between PFC Botev Plovdiv, a Bulgarian football club, and Zeljko Petrovic, a Dutch football coach, regarding the termination of their employment agreement. The dispute was brought before the Court of Arbitration for Sport (CAS) after FIFA’s Players’ Status Committee ruled in favor of Petrovic, ordering the club to pay compensation for unlawful termination. The club appealed, arguing that Bulgarian labor law, rather than FIFA’s Regulations on the Status and Transfer of Players (RSTP), should govern the compensation calculation. The case centered on the applicable legal framework, with the club contending that the 2020 RSTP did not cover coach-club disputes, while Petrovic argued for the retroactive application of the 2021 RSTP, which explicitly included such provisions.
The CAS Sole Arbitrator determined that the 2020 RSTP applied, as the dispute predated the 2021 amendments. Since the 2020 RSTP did not regulate coach employment, Bulgarian labor law governed the matter. The arbitrator emphasized the primacy of federation regulations in sports disputes, noting that Swiss law, referenced in FIFA’s statutes, only applies subsidiarily to gaps in FIFA rules. The arbitrator rejected Petrovic’s argument for retroactive application of the 2021 RSTP, citing the clarity of transitional provisions in Article 26, which stipulated that pre-existing cases be assessed under prior rules.
On the merits, the club acknowledged the unlawful termination but disputed the compensation calculation. Under Bulgarian law, compensation for wrongful dismissal is limited to six months’ gross salary, adjusted for earnings from subsequent employment. The club argued that Petrovic’s interim earnings should offset the compensation, proposing a final amount of EUR 24,967.68. Petrovic, however, contended that compensation for unlawful termination and payment for lack of notice were cumulative, entitling him to the full six months’ salary without deduction. The arbitrator ruled that the two compensations were separate, awarding Petrovic six months’ salary minus his interim earnings, resulting in EUR 51,668.18.
The arbitrator also addressed procedural issues, dismissing the club’s claim that its right to be heard was violated during FIFA proceedings, as CAS reviews cases de novo. The final award partially upheld the club’s appeal, adjusting the compensation amount and ordering payment with 5% annual interest from the filing date. The case underscores the interplay between national labor laws and international sports regulations, clarifying the hierarchy of legal norms in contractual disputes within football. It also highlights the importance of clear contractual terms and the limited retroactive application of regulatory changes. The decision reinforces the autonomy of sports governing bodies while ensuring fair compensation for wrongful termination.