The case involves a legal dispute between Portuguese footballer Abel Xavier and German club Hannover 96 over the termination of Xavier's employment contract and related financial claims. The contract, signed in February 2004, was set to expire in June 2005 and included a monthly salary of EUR 68,000 plus bonuses. A special clause allowed Xavier to terminate the contract early by May 31, 2004, which would end the agreement on June 30, 2004. On May 26, 2004, Hannover proposed a mutual termination, offering to pay Xavier's salary through June if he waived further claims, but he refused. Xavier then filed a complaint with FIFA’s Dispute Resolution Chamber (DRC) on May 27, seeking unpaid salaries for May and June 2004 and six months' compensation. The DRC rejected his claims, leading Xavier to appeal to the Court of Arbitration for Sport (CAS).
Xavier argued that the special agreement entitled him to his June salary regardless of his presence at the club since the season had ended. He also claimed "sporting just cause" under FIFA regulations, asserting his termination was justified and warranted compensation. Hannover countered that Xavier left without authorization after the season, breaching his contract and forfeiting his right to the June salary. They also denied any sporting just cause, stating that player selection is at the club's discretion and Xavier's lack of playtime did not constitute a breach.
The CAS panel, composed of arbitrators from Cyprus, Switzerland, and the UK, reviewed the case based on written submissions. They confirmed jurisdiction under FIFA statutes and the CAS Code, applying FIFA regulations and Swiss law due to the absence of a chosen governing law. The panel deemed Xavier’s appeal admissible as it was filed within the required timeframe. On the merits, the panel ruled that Xavier’s petition to FIFA did not validly exercise his termination right under the special agreement, as it lacked proper formal notification. They also found that his unauthorized departure voided his claim to the June salary. Regarding sporting just cause, the panel upheld that players have no inherent right to be selected, and Hannover’s decisions did not breach the contract. Consequently, the panel dismissed Xavier’s claims for salary and compensation, affirming the DRC’s decision.
In a subsequent ruling, the CAS panel partially upheld Xavier’s appeal, determining that he had validly terminated his contract on June 30, 2004, by invoking the special agreement clause in his FIFA petition. This entitled him to his June salary, as the panel found no evidence Hannover required his services that month. However, the panel rejected Xavier’s claim for compensation under Article 24 of FIFA Regulations, ruling that he voluntarily terminated the contract and failed to prove sporting just cause. The final decision ordered Hannover to pay Xavier’s June 2004 salary within 30 days while dismissing all other claims. The case highlights the importance of contractual obligations and the limited scope of sporting just cause in employment disputes under FIFA regulations and Swiss law.