CAS 2016A4485 Al Ittihad FC v Daniel Gonzales Landler
CAS · Football (FIFA / CAS) · Switzerland · 20 Sept 2016
Why it matters
This case clarifies that an agent's commission falls due upon the player signing the employment contract, regardless of whether all ancillary tasks are performed, unless the agreement expressly conditions payment on cumulative performance. It also confirms that Article 417 CO (reduction of excessive fees) applies only in manifestly exceptional circumstances, and that a 5% commission based on the player's contract value is not excessive under Swiss law or FIFA regulations.
Summary
Al Ittihad FC, a Saudi Arabian football club, appealed a FIFA decision ordering it to pay USD 400,000 to agent Daniel Gonzales Landler. The club had signed a commission agreement with the agent for his services in facilitating the transfer of Brazilian player D. from Vasco da Gama. The agreement listed four tasks: negotiate transfer fee, negotiate player terms, set payment schedule, and close contracts. The agent's commission was 5% of the player's contract value (USD 8 million net), payable in one instalment. The club also hired two other agents, Ghassan Waked and Eduardo Uram, for overlapping roles. The player signed a three-year employment contract but left after three months. The club argued the agent failed to perform all tasks and that the commission was excessive, seeking reduction under Article 417 of the Swiss Code of Obligations. The CAS Sole Arbitrator dismissed the appeal, holding that the agent's ultimate duty was to ensure the player signed the contract, which he did. The commission fell due upon signing, irrespective of other tasks, especially since the club assigned some duties to other agents. The arbitrator found no evidence of coercion or that the commission was conditional on the player's tenure. Applying the principle of pacta sunt servanda, he upheld the full commission, noting that a 5% fee is not excessive under Swiss law or FIFA regulations, and that Article 417 CO applies only in manifestly exceptional circumstances, which were absent. The decision confirmed the FIFA ruling.
The detail
Parties: CAS 2016A4485 Al Ittihad FC v Daniel Gonzales Landler
Outcome: Appeal dismissed; Al Ittihad FC ordered to pay USD 400,000 plus 5% interest per annum from 16 August 2012 to the agent.
Quantum: USD 400,000
Applicable law: FIFA Players' Agents Regulations, Swiss Code of Obligations (Art. 412, 413, 417), FIFA Regulations on Working with Intermediaries (recommendations), CAS jurisprudence
Issues in play: The dispute involved the interpretation of the commission agreement and whether the agent's fee was excessive under Swiss law. The club argued the agent failed to perform all tasks and that the fee should be reduced proportionally, while the agent claimed full entitlement upon the player signing the employment contract.
Read the full decision at Court of Arbitration for Sport (football, via FIFA) ↗
Locus Standi links to the source decision and publishes its own plain-language summary. It does not reproduce the text of the award.