The case involves a dispute between Yeni Malatyaspor FK, a Turkish football club, and Fernando Zuqui, an Argentinian football player, over unpaid salaries and bonuses under their employment contract signed on 21 August 2020. The contract stipulated a signing fee of $450,000, performance bonuses, and other benefits, but by its expiry on 31 May 2021, the club had only paid partial amounts, leaving $267,332.64 unpaid. Zuqui issued a default notice on 17 June 2021, which the club ignored, prompting Zuqui to file a claim with FIFA's Dispute Resolution Chamber (DRC). The DRC ruled in Zuqui's favor on 8 October 2021, ordering the club to pay the overdue amount with 5% annual interest and imposing a $15,000 fine for breach of contract.
Yeni Malatyaspor appealed to the Court of Arbitration for Sport (CAS), arguing financial difficulties and contesting the fine. However, the CAS Sole Arbitrator upheld the DRC's decision, clarifying that financial hardships do not excuse contractual obligations under Swiss law. The arbitrator distinguished between "horizontal" disputes (involving private parties like clubs and players) and "vertical" disputes (involving FIFA's disciplinary powers). Since the club did not name FIFA in its appeal, the challenge to the fine was dismissed for lack of standing. The arbitrator confirmed the club's obligation to pay the outstanding salary and interest, emphasizing the binding nature of employment contracts in professional football.
The CAS dismissed the club's appeal entirely, affirming the DRC's ruling that Yeni Malatyaspor must pay Zuqui $267,332.64 plus interest and uphold the $15,000 fine. The decision underscores the strict enforcement of contractual obligations in sports law, regardless of financial circumstances, and highlights the role of FIFA and CAS in resolving such disputes. The case reinforces the principle that clubs must honor their financial commitments to players, with non-compliance leading to penalties and potential registration bans. The ruling serves as a precedent for similar disputes, ensuring accountability in professional football contracts.