The Court of Arbitration for Sport (CAS) issued a ruling on February 1, 2022, in the dispute between Yeni Malatyaspor FK and professional footballer Fabian Ceddy Farnolle, concerning the termination of their employment contract. The case centered on unpaid salaries and the validity of the contract extension. The sole arbitrator, Prof. Jacopo Tognon, addressed several legal issues, including the inadmissibility of counterclaims under Article R55 of the CAS Code, the invalidity of unbalanced contractual clauses, and the independence of contract validity from registration under Swiss law and FIFA regulations. The arbitrator ruled that non-payment of salaries constitutes just cause for termination, emphasizing the employer's primary obligation to pay and the necessity of a warning before termination. The club's argument that financial difficulties due to COVID-19 justified non-payment was rejected, as external economic factors do not excuse contractual obligations. The arbitrator clarified that FIFA's COVID-19 Guidelines did not classify the pandemic as force majeure, which requires an unforeseeable and irresistible impediment to performance.
The factual background revealed that Farnolle had fulfilled his contractual obligations, playing 34 matches in the 2019-2020 season. Despite repeated demands, the club failed to pay salaries from March to May 2020, leading Farnolle to terminate the contract. The club's attempts to justify delays due to COVID-19 were dismissed, as no force majeure situation was established. The arbitrator reinforced the importance of contractual stability and the employer's duty to meet financial obligations. The case also involved a dispute over the contract's automatic extension clause, which Farnolle argued was triggered by his 34 appearances. The club contested this, claiming the extension required mutual agreement, but the arbitrator upheld the extension, noting the player's reasonable belief and the club's failure to register the contract for the 2020-2021 season.
Farnolle sought compensation for unpaid salaries and damages, totaling €490,000, including €130,000 for unpaid salaries and €360,000 for the residual contract value. The FIFA Dispute Resolution Chamber (DRC) partially granted his claims, ordering payment of outstanding salaries but rejecting residual value and moral damages. The club appealed to CAS, which upheld the DRC's decision, emphasizing the club's contractual breaches and lack of justification for non-payment. The arbitrator also dismissed the club's argument that collective bargaining agreements justified salary deductions, as Farnolle had not consented. The ruling highlighted the importance of contractual fairness, timely payments, and players' rights to training and competition.
The arbitrator confirmed the DRC's calculation of compensation under Article 17 of FIFA's Regulations on the Status and Transfer of Players (RSTP), which deducts the value of the player's new contract from the residual value of the terminated contract. Farnolle was awarded €135,000 in mitigated compensation and an additional €122,700 for overdue payments. The club's appeal was dismissed, and the DRC's decision was fully upheld. The case underscores the principle of pacta sunt servanda (contracts must be honored) and the limited circumstances under which just cause for termination is recognized. The ruling reinforces FIFA's role in enforcing contractual obligations and protecting players' rights, even during disruptions like the COVID-19 pandemic. The CAS decision concluded the dispute, affirming the DRC's ruling and rejecting all further appeals.