Bologna FC 1909 S.p.A. v. Gonzalo Luis Madrid Pineiro (CAS 2016/A/4517)
CAS · Football (FIFA / CAS) · Switzerland · 13 March 2017
Why it matters
This case is a landmark in football arbitration for applying Article 417 SCO to reduce an agent's commission deemed unreasonably high, even though the contract was valid. It sets a precedent that CAS panels can intervene to lower excessive fees based on proportionality, balancing contractual freedom against fairness. The decision clarifies that agents cannot claim disproportionate rewards for minimal additional work after the initial service.
Summary
In 2008, Bologna FC hired agent Gonzalo Luis Madrid Pineiro to facilitate the transfer of player M. from Montevideo Wanderers. The First Agreement (1 July 2008) provided a EUR 2,000,000 fee for signing the player to a five-year contract, plus an additional conditional fee ranging from EUR 500,000 to EUR 6,500,000 if the player was later transferred for value before 31 August 2012. Bologna paid the initial EUR 2,000,000. In July 2011, Bologna transferred the player to Napoli for EUR 9,000,000. On 13 July 2011, the parties signed a Second Agreement confirming that the condition for an additional fee under paragraph (d) of the First Agreement was met, triggering a EUR 4,000,000 payment, to be paid in 24 monthly instalments. Bologna failed to pay any instalments. The agent filed a claim with FIFA's Players' Status Committee, which ordered Bologna to pay EUR 4,000,000 plus 5% interest. Bologna appealed to CAS, arguing that the agreements violated FIFA PAR (Articles 19, 20, 29) and that the fee was excessive and immoral under Swiss law. The CAS panel found the agreements valid and not in breach of FIFA PAR. However, applying Article 417 SCO, the panel held that the additional EUR 4,000,000 was unreasonably high given that the agent had already been paid EUR 2,000,000 for the same services and had no involvement in the subsequent transfer. The panel reduced the additional fee to EUR 2,000,000, resulting in a total of EUR 4,000,000 (EUR 2,000,000 already paid plus EUR 2,000,000 additional). The award ordered payment of EUR 2,000,000 with 5% interest from 17 September 2012.
The detail
Parties: Bologna FC 1909 SpA v Gonzalo Luis Madrid Pineiro
Case number: CAS 2016/A/4517
Outcome: The appeal was partially upheld; the agent's commission was reduced from EUR 4,000,000 to EUR 2,000,000, with 5% interest from 17 September 2012.
Quantum: EUR 2,000,000
Applicable law: FIFA Players' Agent Regulations (FIFA PAR), Swiss Code of Obligations (SCO) Articles 19, 20, 417
Issues in play: The principle of pacta sunt servanda (contracts must be kept) collided with the principle of proportionality under Article 417 SCO, which allows reduction of excessive contractual commissions to restore balance.
Read the full decision at Court of Arbitration for Sport (football, via FIFA) ↗
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