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CAS 2019 A 6504 (CAS)

Why it matters

This case confirms the strict enforcement of CAS awards and FIFA disciplinary sanctions for non-payment of transfer compensation. It underscores that clubs cannot avoid financial obligations by citing financial crisis, and that transfer bans of indefinite duration are proportionate when the club can end the ban by paying. The decision reinforces the principle of pacta sunt servanda in football and the importance of maintaining competitive integrity.

Summary

Cruzeiro Esporte Club, a Brazilian football club, was ordered by a FIFA Players' Status Committee decision (upheld by CAS in 2019) to pay EUR 1,050,000 plus interest and costs to Defensor Sporting Club for the transfer of player Giorgian de Arrascaeta. Cruzeiro failed to pay. FIFA's Disciplinary Committee then imposed a CHF 30,000 fine and a final 30-day deadline to pay, threatening a transfer ban if not paid. Cruzeiro appealed to CAS, arguing that the 2017 edition of the FIFA Disciplinary Code should apply (which allowed a longer grace period) and that the sanctions were disproportionate. The Sole Arbitrator applied the 2019 FDC, which was in force when the disciplinary offence occurred (the failure to pay after the CAS award). He held that the fine and transfer ban were proportionate, noting that the ban would be lifted immediately upon payment. The appeal was dismissed, and the FIFA DC decision upheld. The case illustrates the strict enforcement of financial decisions in football and the limited discretion of clubs to avoid sanctions based on financial hardship.

The detail

Parties: Cruzeiro Esporte Club v. FIFA

Case number: CAS 2019 A 6504

Outcome: Appeal dismissed; FIFA Disciplinary Committee decision upheld.

Quantum: CHF 30,000 fine; transfer ban until payment of EUR 1,050,000 plus interest and costs

Applicable law: FIFA Disciplinary Code (2019 edition), FIFA Statutes, Swiss law

Issues in play: The case involved the application of Article 64 of the FIFA Disciplinary Code (failure to comply with a decision) and the principle of proportionality. The Club argued that the 2017 edition of the FDC should apply, but the Sole Arbitrator applied the 2019 edition as the disciplinary offence occurred after its entry into force.

Read the full decision at Court of Arbitration for Sport (football, via FIFA) ↗

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