The case involves a contractual dispute between Austrian football player Lukas Grozurek and Cypriot club Pafos FC, adjudicated by the Court of Arbitration for Sport (CAS). The dispute centered on whether a valid employment contract had been concluded between the parties. Grozurek claimed that a binding agreement was reached through a signed offer, while Pafos FC argued that negotiations were still ongoing. The FIFA Dispute Resolution Chamber (DRC) initially ruled in favor of the club, stating that Grozurek failed to prove a binding contract existed. Grozurek then appealed to CAS, seeking to overturn the FIFA DRC decision and obtain compensation for breach of contract.
Under Swiss law, which governed the case, a contract requires mutual intent and agreement on essential terms (essentialia negotii), such as duration, remuneration, and signatures. Grozurek argued that the Third Offer, which he signed with a conditional note, constituted a binding agreement. Pafos FC, however, contended that negotiations were incomplete, evidenced by subsequent exchanges of draft contracts with amendments. The FIFA DRC found the documents ambiguous and noted ongoing discussions, concluding no binding contract had been formed. The CAS panel, led by Sole Arbitrator Patrick Lafranchi, reviewed the case, including principles like res judicata (only the operative part of a decision is binding) and culpa in contrahendo (pre-contractual duties of good faith and fair negotiation).
Grozurek sought compensation for alleged breach of contract and damages, while Pafos FC requested dismissal of the claims. The CAS proceedings aimed to determine whether the FIFA DRC's decision should be upheld or overturned based on the evidence and legal principles. The Sole Arbitrator analyzed the Third Offer and subsequent Draft Employment Contract, concluding that neither document established a binding agreement due to unresolved negotiations, lack of signatures, and unclear essential terms. The Arbitrator also rejected Grozurek’s claim of culpa in contrahendo, finding no evidence that Pafos FC acted in bad faith or caused him harm by abandoning negotiations.
The final award, issued on 7 November 2022, dismissed Grozurek’s appeal and upheld the FIFA DRC’s decision, confirming that no valid employment contract existed between the parties. The case highlights the complexities of contract formation in football transfers and underscores the importance of clear mutual intent and formal execution in contractual negotiations. The ruling emphasizes that preliminary documents, without finalized terms and signatures, do not constitute binding agreements under Swiss law and FIFA regulations.