The case involves a dispute between Altay SK, a Turkish football club, and Prince Segbefia, a Togolese football player, concerning the termination of their employment contract and subsequent financial claims. The parties entered into a contract on 1 January 2020, valid until 31 May 2021, with provisions for extension if the club was promoted to the Super Lig. The contract specified salary payments and performance-based bonuses. However, the club failed to pay the player's salaries for several months, prompting the player to issue a default notice on 3 August 2020, demanding payment of EUR 95,000 within 15 days. When the club did not comply, the player terminated the contract unilaterally on 20 August 2020 and joined another Turkish club, Tuzla Spor Kulübü, for a lower salary.
The player filed a claim with FIFA's Dispute Resolution Chamber (DRC) on 23 September 2020, seeking unpaid remuneration of EUR 275,000, compensation for breach of contract (EUR 150,000), and sporting sanctions against the club. The DRC ruled in favor of the player on 25 March 2021, ordering the club to pay EUR 95,000 in outstanding salaries plus interest and EUR 180,000 as compensation for breach of contract, also with interest. The DRC imposed a registration ban on the club if payments were not made within 45 days. The club appealed to the Court of Arbitration for Sport (CAS), challenging the DRC's decision.
The CAS panel, led by sole arbitrator Patrick Lafranchi, examined the case under FIFA's Regulations on the Status and Transfer of Players (RSTP). Article 14bis of the RSTP allows a player to terminate a contract with just cause if the club fails to pay at least two monthly salaries after a written notice and 15-day deadline. The panel found the player's termination valid due to the club's non-payment. Regarding compensation, Article 17(1) of the RSTP stipulates that the residual value of the terminated contract is adjusted by deducting the value of the new contract (Mitigated Compensation). The CAS upheld the DRC's decision, confirming the amounts awarded and the potential sporting sanctions.
The club argued that payments made to the player’s legal counsel (EUR 7,500 and TL 230,000) should offset the unpaid salaries, but the Sole Arbitrator found no evidence linking these payments to contractual obligations. The unpaid salaries for February to August 2020, totaling EUR 95,000, were deemed outstanding. The residual value of the contract was EUR 180,000, but the player mitigated losses by earning EUR 50,000 with his new club, resulting in a net compensation of EUR 130,000. The Sole Arbitrator capped the total compensation at EUR 180,000, as exceeding this would violate FIFA rules. Interest of 5% per annum was awarded on both the outstanding remuneration and compensation, starting from 25 April 2021.
The CAS dismissed the club's appeal entirely, upholding the DRC's decision. The ruling emphasized the importance of clubs adhering to contractual obligations and the legal protections available to players in cases of unpaid salaries. It also highlighted the consequences for clubs failing to meet financial commitments, including registration bans. The case underscores the enforceability of FIFA regulations and the role of CAS in resolving sports-related disputes fairly and impartially.