The Court of Arbitration for Sport (CAS) issued an award on May 10, 2022, in the dispute between football player Shiza Yahya, his new club Simba SC, and his former club Pharco FC regarding the termination of an employment contract. The case was adjudicated by sole arbitrator Manfred Nan, who examined the player’s claim that Pharco FC failed to pay his salary for seven months, leading him to terminate the contract and rejoin Simba SC. Pharco FC contested this, arguing the contract was valid and the termination unjustified. The arbitrator emphasized that terminating a contract requires issuing a default notice to allow the breaching party an opportunity to rectify the issue. The player had signed a blank contract, which the arbitrator noted was risky as it allowed Pharco to insert unfavorable terms. The arbitrator clarified that Article 17(1) of FIFA’s Regulations on the Status and Transfer of Players (RSTP) provides illustrative criteria for compensation, including lost transfer fees and replacement costs, but stressed each case must be assessed individually.
The arbitrator ruled that if a former club no longer valued the player’s services, the costs saved by the club should offset damages. The loss of a transfer fee could be compensable if proven. The "specificity of sport" was described as a correcting factor, not an additional compensation head. Pharco FC was held jointly liable under Article 17(2) of the FIFA RSTP for signing the player without ensuring his prior contract was properly terminated. The player claimed he was misled into signing a blank contract and that Pharco altered terms, but the arbitrator found insufficient evidence to support this. The player also argued unpaid salaries justified termination, but the arbitrator noted he failed to issue a formal default notice or provide proof of the breaches.
The arbitrator concluded the player lacked just cause to terminate the contract, as his actions did not meet the stringent criteria under FIFA regulations and Swiss law. Compensation was calculated based on the unamortized transfer fee (USD 65,000) and the residual value of the contract (USD 29,000), resulting in a net award of USD 36,000 to Pharco FC. Simba SC was held jointly liable, as it failed to verify the player’s contractual status before signing him. The arbitrator dismissed the player’s claims for unpaid salaries and personality rights violations due to lack of evidence. The final ruling required the player and Simba SC to pay USD 36,000 plus 5% annual interest from November 24, 2020, until payment. The decision underscores the importance of contractual clarity, procedural compliance, and the consequences of unjustified terminations in football. It also highlights the risks of signing blank contracts and the obligations of clubs in player transfers. The case serves as a reminder of the legal and financial repercussions of breaching employment agreements in professional sports.