The case involves a dispute between Turkish football club Altay SK and Bosnian-Herzegovinian professional football player Edin Cocalic regarding the termination of their employment contract. Signed on 15 September 2020, the contract was valid until 31 May 2022, with monthly payments of €20,000 for the 2020-2021 season and €22,000 for the 2021-2022 season, along with additional bonuses and benefits such as housing and a car. The club failed to pay the player's salaries for October, November, and December 2020, as well as the housing allowance, totaling €60,000 and 9,000 Turkish Lira. On 29 December 2020, the player sent a default letter to the club, demanding payment within 15 days as per FIFA regulations. When the club failed to comply, the player terminated the contract unilaterally on 14 January 2021, citing just cause due to the club's substantial breach of its payment obligations. The player subsequently signed a new contract with Panetolikos FC on 18 January 2021.
The legal principles at issue include the concept of just cause for termination, which arises when an employer fails to meet its main obligation of paying remuneration, especially if the breach is repeated. The player was not required to prove financial hardship; the key factor was the loss of confidence in the employer's ability to fulfill the contract. The player also had to issue a warning before terminating the contract, which he did through the default letter. The principle of positive interest entitles the injured party to full compensation to restore them to the position they would have been in had the contract been performed. However, the injured party must also mitigate their damages.
The case was brought before the Court of Arbitration for Sport (CAS) after the FIFA Dispute Resolution Chamber issued a decision on 3 June 2021. The FIFA DRC ruled in favor of the player, finding the club in serious breach of contract due to unpaid salaries and rent. It ordered the club to pay the outstanding amounts (€80,000 and 9,000 TL) plus 5% annual interest. Additionally, the DRC awarded compensation for breach of contract under Article 17 of FIFA’s regulations, considering the player’s new contract mitigated some losses. The club’s failure to provide adequate proof of payment and comply with FIFA’s procedural requirements led to the dismissal of its objections.
The club appealed the decision to CAS, arguing that the player's termination was without just cause and seeking to overturn the payment obligations. The CAS proceedings involved written submissions from both parties, with a sole arbitrator appointed to decide the case without a hearing. The arbitrator confirmed the club's failure to meet payment obligations, justifying the player's termination. The arbitrator ruled the player was entitled to the unpaid salaries and rent, totaling €80,000 and 9,000 TL, respectively, plus interest. Additionally, the player was awarded €193,000 in compensation for breach of contract, adjusted for his new contract with Panetolikos FC. The CAS dismissed Altay SK's appeal, fully affirming the FIFA decision and rejecting all other claims. The final award was issued on 11 April 2022, reinforcing the importance of contractual adherence in professional sports and the consequences of failing to meet financial obligations.