CAS 2020 A 6900
CAS · Football (FIFA / CAS) · Switzerland · 1 Jun 2021
Why it matters
This case clarifies that a national insolvency restructuring plan can be recognized in FIFA disciplinary proceedings, discharging a club's obligation to pay the full amount of a FIFA DRC decision if the club has paid its reduced share under the plan. It sets a precedent that the balance of interests may tip in favor of recognition when players chose a contractual structure that led to their claims being treated as unsecured in insolvency.
Summary
The Romanian football club CFR Cluj was ordered by the FIFA Dispute Resolution Chamber (DRC) to pay two Brazilian players, Ronny da Silva and Edimar Fraga, outstanding salaries totaling about EUR 196,000. Before paying, the club entered insolvency proceedings in Romania. The players filed their claims in the insolvency, but because their contracts were civil rather than labor law conventions, their claims were classified as unsecured. The Romanian court approved a restructuring plan that reduced all unsecured claims to 10.79%. The club paid that percentage (about EUR 14,144 to da Silva and EUR 13,539 to Fraga) and the insolvency proceedings closed. The players then asked FIFA to enforce the full DRC decisions. The FIFA Disciplinary Committee found the club guilty of non-compliance, imposed a CHF 10,000 fine, and threatened a transfer ban. The club appealed to CAS. The Sole Arbitrator, Prof. Ulrich Haas, considered whether the effects of the Romanian restructuring plan should be recognized in FIFA disciplinary proceedings. He noted that CAS precedents recognize national insolvency effects unless they conflict with FIFA's objectives. Here, the players had chosen civil contracts, which caused their claims to be unsecured. They did not contest the restructuring plan. The Sole Arbitrator found that the balance of interests tipped in favor of recognition because the players' own contractual choice led to the reduced recovery. Since the club paid all amounts due under the plan, it had complied with its obligations. The appeals were upheld, and the FIFA decisions were set aside. The case highlights the interplay between national insolvency law and FIFA's enforcement regime.
The detail
Parties: & 6902 Fotbal Club CFR 1907 Cluj S.A. v. Ronny da Silva & Edimar Curitiba Fraga & FIFA
Case number: CAS 2020 A 6900
Outcome: The appeals were upheld. The FIFA Disciplinary Committee decisions were set aside. FIFA ordered to pay CHF 6,000 towards the Club's legal costs.
Applicable law: FIFA Disciplinary Code (2017 and 2019 editions), FIFA Regulations on the Status and Transfer of Players, Romanian insolvency law (Law no. 85/2014), Swiss law
Issues in play: The collision was between the finality and binding nature of FIFA DRC decisions under FIFA regulations and the effects of a national insolvency restructuring plan that reduced the debt to 10.79%. The question was whether the restructuring plan could be recognized in FIFA disciplinary proceedings.
Read the full decision at Court of Arbitration for Sport (football, via FIFA) ↗
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