The case involves a legal dispute between Kayserispor KD, a Turkish football club, and Robert Prosinecki, a Croatian football coach, regarding an employment contract signed in January 2020. The contract stipulated a salary of €325,000 for the 2019-2020 season, payable in monthly installments, and a €250,000 bonus if the club avoided relegation. Due to the COVID-19 pandemic, the Turkish Football Federation (TFF) suspended matches in March 2020 and later annulled relegation for the season, meaning no teams were relegated despite Kayserispor finishing 17th. Prosinecki claimed unpaid salary (€130,000) and the bonus, leading to a FIFA Players’ Status Committee ruling in his favor on 17 June 2021. Kayserispor appealed to the Court of Arbitration for Sport (CAS), where the sole arbitrator, Prof. Ulrich Haas, examined the case under Swiss law, as per Article R58 of the CAS Code.
The arbitrator confirmed that while contracts must generally be honored (pacta sunt servanda), unforeseen circumstances like the pandemic and the TFF’s decision to cancel relegation could justify adjustments. The bonus clause was tied to sporting merit, not administrative decisions, and the arbitrator found that the parties would not have agreed to it under these altered conditions. However, the unpaid salary claim was upheld, with the club ordered to pay €130,000 plus 5% annual interest under Swiss law, as FIFA regulations lack specific interest rate provisions. The arbitrator emphasized that judicial intervention should not rewrite contracts but could address significant disruptions to their balance.
Kayserispor argued that Turkish law should apply, citing the contract’s closest connection to Turkey, and proposed a 0.21% interest rate based on Turkish state-owned banks’ rates. Prosinecki maintained that Swiss law governed the dispute, as the parties had submitted to FIFA and CAS jurisdiction. The arbitrator ruled that Swiss law applied, given FIFA’s domicile in Switzerland, unless Turkish law was more appropriate, which was not deemed the case. The arbitrator also considered the hypothetical intentions of the parties and the principle of good faith, concluding that the bonus was not owed since the club’s avoidance of relegation resulted from administrative action, not sporting performance.
The final award, issued on 21 April 2022, partially upheld the FIFA decision, requiring Kayserispor to pay the outstanding salary with interest but annulling the bonus payment. The case highlights the complexities of contractual disputes in sports, particularly under exceptional circumstances like the pandemic, and the role of CAS in balancing contractual obligations with unforeseen changes. It underscores the importance of clear contractual terms and the application of legal principles to ensure fairness in sports-related employment conflicts. The arbitrator’s decision reflects a careful balance between enforcing agreements and adapting to extraordinary disruptions.