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CAS 2020 A 7030 (CAS)

Why it matters

This case clarifies that when both parties contribute to the breakdown of an employment contract, neither is entitled to compensation or sanctions. It reinforces the principle that just cause must be assessed in context, and that contractual penalty clauses are not automatically enforceable if the termination is not a unilateral breach.

Summary

The case arose from an attack by Sporting fans on the training ground in May 2018. Player Ribeiro terminated his contract with Sporting on 13 June 2018, claiming just cause. Sporting argued the termination was unjustified and sought compensation of EUR 62 million plus a penalty clause of EUR 60 million. The FIFA DRC found the Player had just cause but denied compensation because he waited a month to terminate. Both parties appealed to CAS. The CAS Panel held that the termination was not a unilateral breach by either party; both contributed to the contract's end. Therefore, no compensation was due, and no sporting sanctions were imposed. The Panel applied Swiss law and FIFA RSTP, noting that Article 17 RSTP did not apply as there was no unilateral breach. The contractual penalty clause was also inapplicable. The Panel confirmed the FIFA DRC decision, dismissing both appeals.

The detail

Parties: & 7051 Sporting Clube De Portugal v. Rúben Tiago Rodrigues Ribeiro & Al Ain FC & FIFA

Case number: CAS 2020 A 7030

Outcome: Both appeals dismissed; FIFA DRC decision confirmed; no compensation awarded; each party bears own costs; Sporting ordered to pay CHF 3,000 to Al Ain's legal costs.

Applicable law: FIFA Regulations on the Status and Transfer of Players (RSTP), Swiss Code of Obligations (SCO), CAS Code of Sports-related Arbitration

Issues in play: The case involved the interpretation of just cause for termination under FIFA RSTP and Swiss labour law, and the application of contractual penalty clauses versus actual damages.

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

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