CAS 2019/A/6337
CAS · Football (FIFA / CAS) · Switzerland · 26 Jun 2020
Why it matters
This case clarifies the distinction between a buy-out clause and a liquidated damages clause in football contracts, emphasizing that a clause using the word 'fine' and lacking a clear right to terminate is not a buy-out clause. It also addresses the discretion of FIFA DRC in imposing sporting sanctions, confirming that while Article 17(3) RSTP appears mandatory, practice allows discretion, but sanctions are warranted when a player terminates solely for a better financial deal.
Summary
Maksim Maksimov, a Russian footballer, signed a three-year contract with Lithuanian club FC Trakai in March 2017. Clause 9.6 stated that if the player terminated the contract on grounds not stipulated, or if the club terminated due to the player's wrongdoing, the player must pay a 'fine' of EUR 50,000 plus expenses. In August 2017, Maksimov informed the club he was exercising his rights under clause 9.6 and paid EUR 50,000 via his new club FK Vardar, with whom he signed a more lucrative contract. The club argued clause 9.6 was not a buy-out clause but a liquidated damages clause. The FIFA DRC agreed, finding Maksimov terminated without just cause, ordered him to pay compensation of EUR 132,988 (calculated as the average of his old and new salaries minus the EUR 50,000 paid), and imposed a four-month ban. Maksimov appealed to CAS. The Sole Arbitrator upheld the DRC decision, ruling that clause 9.6 was a liquidated damages clause because it used the word 'fine' and did not grant a right to terminate; it only set minimum damages. The principle contra proferentem did not apply as the clause was clear. Compensation was correctly calculated under Article 17(1) RSTP using the positive interest principle. The four-month ban was appropriate because Maksimov terminated solely for a higher salary, violating contractual stability. The appeal was dismissed.
The detail
Parties: Maksim Maksimov v. FIFA & FC Trakai
Case number: CAS 2019/A/6337
Outcome: Appeal dismissed; FIFA DRC decision confirmed: player ordered to pay EUR 132,988 compensation to club and banned for four months.
Quantum: EUR 132,988
Applicable law: FIFA Regulations on the Status and Transfer of Players (RSTP), particularly Article 17
Issues in play: Interpretation of a contractual clause as a buy-out clause vs. liquidated damages clause; application of contra proferentem principle; automaticity of sporting sanctions under Article 17(3) RSTP.
Read the full decision at Court of Arbitration for Sport (football, via FIFA) ↗
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