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CAS 2020 A 7610 (CAS)

Why it matters

This case is significant for its detailed application of Article 17 of the FIFA RSTP, particularly the calculation of mitigated compensation and additional compensation for overdue payables. It clarifies that housing allowances are not included in additional compensation and that bonuses from a new club are considered in mitigation. The decision also addresses the effect of the COVID-19 pandemic on contractual obligations, providing guidance on force majeure and good faith negotiations.

Summary

Besiktas appealed a FIFA DRC decision that ordered it to pay compensation to player Victor Ruiz Torre for breach of contract. The player had terminated his employment agreement with Besiktas due to repeated late and non-payment of salaries, despite a settlement agreement. Besiktas argued that the COVID-19 pandemic constituted force majeure and that the player had not properly put the club in default. The CAS panel upheld the DRC's finding that the player had just cause to terminate due to overdue payables. The panel recalculated the compensation, reducing it from EUR 3,500,000 to EUR 2,048,538.93 by deducting the player's earnings from his new club (Real Betis) and reducing additional compensation from three monthly salaries including housing allowance to three monthly salaries without housing allowance. The panel also confirmed that the player was entitled to outstanding salaries and interest. The appeal was partially upheld, and Besiktas was ordered to pay the reduced compensation plus interest and a contribution to the player's legal fees.

The detail

Parties: Besiktas A.S. v. FIFA, Victor Ruiz Torre & Real Betis Balompié

Case number: CAS 2020 A 7610

Outcome: The appeal was partially upheld. The FIFA DRC decision was confirmed except that the compensation for breach of contract was reduced to EUR 2,048,538.93 plus interest, and additional compensation was reduced to EUR 525,000. Besiktas was ordered to pay outstanding remuneration and compensation to the player.

Quantum: EUR 2,048,538.93

Applicable law: FIFA Regulations on the Status and Transfer of Players (RSTP), particularly Articles 14bis, 17, and 17(1)(ii); Swiss law; CAS Code of Sports-related Arbitration

Issues in play: The case involved the interpretation of Article 17 of the FIFA RSTP regarding compensation for breach of contract without just cause, including the calculation of mitigated compensation and additional compensation for overdue payables. The panel also considered the impact of the COVID-19 pandemic on contractual obligations and the validity of a settlement agreement.

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

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