CAS 2021 A 7757
CAS · Football (FIFA / CAS) · Switzerland · 25 Jan 2023
Why it matters
This case clarifies the strict requirements for a player to terminate a contract with just cause under Article 14bis RSTP, emphasizing that outstanding payments for image rights do not constitute 'salaries' under that provision. It also confirms that a club's failure to register a player for a competition or training separately does not automatically amount to abusive conduct justifying termination. The award reinforces the principle of contractual stability in football and the joint and several liability of the new club.
Summary
The case concerns two consolidated appeals against a FIFA DRC decision regarding the termination of the employment contract between Peruvian player Christian Cueva and Brazilian club Santos FC. Cueva signed a contract with Santos in February 2019, with a monthly salary of BRL 300,000, plus housing allowance and an image rights agreement paying BRL 200,000 per month. In January 2020, Cueva sent a notice demanding overdue payments under the image rights agreement and housing allowance, then terminated the contract, claiming just cause due to non-payment and being separated from the first team. He immediately signed with Mexican club Pachuca. Santos FC claimed Cueva terminated without just cause and sought compensation. The FIFA DRC found Cueva liable for breach without just cause, ordering him to pay BRL 40,193,631 (based on the liquidated damages clause of EUR 100 million converted to BRL) plus interest, with Pachuca jointly and severally liable. Both Cueva and Pachuca appealed to CAS. The CAS Panel upheld the DRC decision. It held that the image rights payments were not 'salaries' under Article 14bis RSTP, so the non-payment did not justify termination. The Panel also found that training separately and not being registered for a competition did not constitute abusive conduct under Article 14.2 RSTP. Regarding compensation, the Panel applied Brazilian law and the contractual liquidated damages clause, but reduced the amount from EUR 100 million to BRL 40,193,631 (approximately EUR 6.5 million) considering the specificity of sport and the player's actual value. The Panel confirmed Pachuca's joint and several liability for inducing the breach. The award was rendered in 2022.
The detail
Parties: & 7762 Club de Fútbol Pachuca & Christian Alberto Cueva Bravo v. Santos Futebol Clube and FIFA
Case number: CAS 2021 A 7757
Outcome: The CAS Panel dismissed the appeals and confirmed the FIFA DRC decision that the Player terminated his contract without just cause, ordering him to pay BRL 40,193,631 plus interest to Santos FC, with CF Pachuca jointly and severally liable.
Quantum: BRL 40,193,631 plus 5% interest p.a. from 8 June 2020
Applicable law: FIFA Regulations on the Status and Transfer of Players (RSTP), Brazilian law (Federal Law No. 9.615/1998, Consolidation of Labour Laws), CAS Code of Sports-related Arbitration
Issues in play: The case involved the interpretation of Articles 14bis and 17 RSTP regarding just cause for termination and compensation calculation, and the interaction between Brazilian labour law and FIFA regulations on image rights payments as salary.
Read the full decision at Court of Arbitration for Sport (football, via FIFA) ↗
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