CAS 2020 A 7267
CAS · Football (FIFA / CAS) · Switzerland · 29 Oct 2021
Why it matters
This case illustrates the CAS approach to calculating compensation for coaches under Swiss law when a contract is terminated with just cause due to non-payment. It confirms that the duty to mitigate damages applies, and that earnings from subsequent employment (even if later terminated by mutual consent) must be deducted. The decision also clarifies that FIFA's jurisdiction over international coach disputes is not ousted by a national arbitration clause unless the national tribunal is independent and guarantees fair proceedings.
Summary
AE Larissa FC, a Greek football club, hired Serbian coach Gordan Petric on 1 July 2019 under two contracts running until 30 June 2021. The club failed to pay his salary for July and August 2019. After a meeting on 8 August 2019, the club announced on its website that the contracts had been terminated by mutual consent, but no written termination agreement was signed. The coach sent a default notice on 28 August 2019, giving the club 15 days to pay. When no payment was made, he terminated the contracts with just cause on 13 September 2019 and filed a claim with FIFA. The FIFA Players' Status Committee (PSC) found that the club had breached its financial obligations and ordered it to pay EUR 11,600 in outstanding salary and EUR 127,600 as compensation for breach of contract. The club appealed to CAS, arguing that FIFA lacked jurisdiction because the contracts contained a clause referring disputes to the Hellenic Football Federation (HFF), and that the contracts had been mutually terminated. The CAS Sole Arbitrator rejected the jurisdiction argument, noting that Article 22(b) FIFA RSTP allows parties to opt for a national arbitration tribunal only if it is independent and guarantees fair proceedings, and the club had not shown that the HFF bodies met that standard. On the merits, the arbitrator found no evidence of mutual termination; the club's unilateral announcement did not constitute a valid agreement. Since two monthly salaries were unpaid despite a default notice, the coach had just cause to terminate. The arbitrator upheld the outstanding salary award but reduced the compensation from EUR 127,600 to EUR 77,545, deducting EUR 50,055 that the coach would have earned from a subsequent contract with Gorica FC (Slovenia) had he not mutually terminated that contract. The arbitrator held that the mutual termination of the later contract was an intentional renunciation of work that should have mitigated damages. The appeal was partially upheld, and the club was ordered to pay the reduced compensation plus interest.
The detail
Parties: AE Larissa FC v. Gordon Petric & FIFA
Case number: CAS 2020 A 7267
Outcome: Appeal partially upheld; Club ordered to pay Coach EUR 11,600 in outstanding remuneration plus 5% interest, and EUR 77,545 as compensation for breach of contract plus 5% interest.
Quantum: EUR 89,145
Applicable law: FIFA Regulations on the Status and Transfer of Players (RSTP), Swiss Code of Obligations (CO), CAS Code of Sports-related Arbitration
Issues in play: The dispute involved the application of Article 17 FIFA RSTP (compensation for breach) and Articles 337b and 337c Swiss CO (damages for wrongful termination and mitigation). The key issue was whether the coach had just cause to terminate and how to calculate compensation, including deduction of earnings from subsequent employment.
Read the full decision at Court of Arbitration for Sport (football, via FIFA) ↗
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