CAS 2019 A 6533
CAS · Football (FIFA / CAS) · Switzerland · 1 Feb 2021
Why it matters
This case clarifies that a club's deregistration of a player can itself constitute a breach of contract, and that a contractual compensation clause providing disproportionate benefits may be disregarded. It also confirms the application of mitigation principles in football disputes.
Summary
The case concerns a dispute between Brazilian player Sérgio Dutra Junior and Qatari club Al Arabi S.C. over the termination of his employment contract. The player terminated the contract on 3 April 2016, citing unpaid salaries for January, February, and March 2016 (EUR 300,000) and his deregistration by the club on 31 January 2016. The FIFA DRC found that the player had just cause to terminate, as the club failed to pay salaries and deregistered him, violating his fundamental right to compete. The DRC awarded EUR 300,000 in outstanding salaries and EUR 4,725,000 in compensation (based on the residual value of the contract minus mitigation from subsequent contracts). The club appealed to CAS, arguing no just cause and that the compensation was excessive. The player cross-appealed, seeking higher compensation and sporting sanctions. The CAS Sole Arbitrator upheld the DRC decision, confirming that deregistration alone can justify termination, and that the contractual compensation clause (EUR 20 million for the club vs. residual value for the player) was disproportionate and thus invalid. The compensation was calculated under Article 17 FIFA RSTP, considering the player's duty to mitigate damages. The club's request for sporting sanctions against the player was rejected.
The detail
Parties: & 6539 Club Al Arabi S.C. v. Sérgio Dutra Junior & Dérgio Dutra Junior v. Al Arabi S.C. & FIFA
Case number: CAS 2019 A 6533
Outcome: The CAS upheld the FIFA DRC decision: Club to pay Player EUR 300,000 in outstanding salaries and EUR 4,725,000 in compensation for breach of contract; Club's counterclaim rejected.
Quantum: EUR 5,025,000
Applicable law: FIFA Regulations on the Status and Transfer of Players (RSTP), Swiss Civil Code, Swiss Code of Obligations
Issues in play: The case involved the interpretation of just cause for termination under FIFA RSTP and Swiss law, and the calculation of compensation including mitigation of damages.
Read the full decision at Court of Arbitration for Sport (football, via FIFA) ↗
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