The case involves a dispute between Yeni Malatyaspor FK, a Turkish football club, and Issiar Dia, a professional football player, concerning unpaid salaries and the termination of their employment contract. The parties initially signed a contract on 27 July 2017, valid until 31 May 2020, with the player entitled to €2,350,000 over three seasons. On 8 May 2020, the player’s legal representative sent a formal notice to the club, citing unpaid salaries of €371,250 and alleging pressure to sign a mutual termination agreement. The player also claimed the club withdrew benefits like accommodation and a car without explanation. On 21 May 2020, the parties signed a termination agreement, stipulating payment of the outstanding amount in three installments by specified deadlines, with a penalty clause for late payments. The club missed the first payment deadline on 30 June 2020, prompting the player to demand immediate payment of the full amount, including interest and a €20,000 penalty. The club acknowledged the delay but cited financial difficulties, promising payment upon receiving funds from another transaction.
The dispute was brought before FIFA’s Dispute Resolution Chamber (DRC), which ruled on 10 December 2020, ordering the club to pay the outstanding remuneration in three installments, plus 10% annual interest and the €20,000 penalty. The DRC rejected the club’s arguments, emphasizing the principle of "pacta sunt servanda" (agreements must be kept). The club appealed to the Court of Arbitration for Sport (CAS), arguing the penalty and interest were disproportionate and citing financial hardships due to the COVID-19 pandemic. The CAS Sole Arbitrator examined the case under FIFA regulations and Swiss law, finding no evidence the player coerced the club into the agreement or that the club acted under duress. The arbitrator upheld the termination agreement’s terms, including the penalty and interest rate, ruling they were proportionate and legally valid. The arbitrator referenced Swiss law, which allows interest rates above 5% if agreed upon, provided they remain within reasonable limits, and noted the 10% rate was acceptable as it fell below the 18% threshold.
The CAS dismissed the club’s appeal entirely, confirming the FIFA DRC’s decision and ordering the club to fulfill its financial obligations. The ruling underscored the enforceability of contractual terms in sports disputes, even in cases of financial hardship, and reaffirmed the principle of contractual freedom under Swiss law. The case, identified as CAS 2021/A/7727, concluded with an award issued on 8 November 2021, rejecting the club’s appeal and upholding the original decision. The outcome highlights the importance of honoring contractual agreements and the consequences of non-compliance in professional football.