CAS 2014A3962 Ciro Jose Sanchez v Enzo Nicolas Perez
CAS · Football (FIFA / CAS) · Switzerland · 7 Dec 2016
Why it matters
This award clarifies that an agent's undisclosed conflict of interest, even if the contract is valid, constitutes a substantial breach of loyalty that forfeits the right to compensation. It also establishes that the relevant criterion for determining whether a dispute is international under the 2008 PAR is the place of registration of the parties, not their nationality. Additionally, it confirms CAS's full power of review even when the first instance declined jurisdiction.
Summary
Ciro José Sánchez, a football agent licensed by the Argentinian Football Association (AFA), entered into a representation contract with player Enzo Nicolás Pérez in March 2011. The contract gave Sánchez exclusive rights to negotiate Pérez's contracts, with a fee of 15% of any sums received. In June 2011, Sánchez helped Pérez sign a five-year contract with Portuguese club Benfica. Pérez later played for Estudiantes on loan and returned to Benfica. Sánchez claimed he was owed €337,078.80 in fees for seasons 2011/12 to 2013/14. In November 2013, he filed a claim with FIFA. The FIFA Single Judge ruled the claim inadmissible, finding the dispute lacked international dimension because both parties were Argentine (agent licensed by AFA, player of Argentine nationality). Sánchez appealed to CAS. The CAS panel first addressed jurisdiction: it held that FIFA had standing to be sued only if it had a stake in the dispute, but here FIFA acted as a neutral first-instance decision-maker, so the appeal could proceed without FIFA as respondent. The panel also confirmed its full power of review under CAS Code Art. R57, allowing it to decide the merits. On the merits, the panel found that the relevant criterion for international dispute under the 2008 PAR is the parties' place of registration, not nationality. At the time of the claim, Pérez was registered with the Portuguese Football Federation (Benfica), while Sánchez was registered with AFA, making the dispute international and FIFA competent. However, the panel then examined the Player's defense that Sánchez had a conflict of interest: Sánchez had a side agreement with Benfica entitling him to 5% of any future transfer fee, meaning he represented both the Player and Benfica. The panel found this violated Art. 19.8 of the 2008 PAR, which prohibits double brokerage and conflicts of interest. Although the contract was valid, the undisclosed conflict was a substantial breach of the agent's duty of loyalty, causing him to forfeit his right to compensation under Art. 415 SCO. The panel dismissed the appeal, ruling Sánchez had no right to compensation. The award was issued on 7 December 2016.
The detail
Parties: CAS 2014A3962 Ciro Jose Sanchez v Enzo Nicolas Perez
Outcome: Appeal dismissed; agent has no right to compensation due to conflict of interest.
Applicable law: FIFA Players' Agents Regulations 2008 (2008 PAR), Swiss Code of Obligations (SCO), Swiss Civil Code (SCC)
Issues in play: The case involved the interpretation of Art. 19.8 of the 2008 PAR prohibiting double brokerage and conflict of interest, and Art. 415 SCO on forfeiture of broker's fee for bad faith. The panel also considered Art. 75 SCC on standing to be sued and the criteria for determining international vs. national disputes under the 2008 PAR.
Read the full decision at Court of Arbitration for Sport (football, via FIFA) ↗
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