CAS 2021 A 7795
CAS · Football (FIFA / CAS) · Switzerland · 27 Mar 2023
Why it matters
This case clarifies that a player's refusal to accept a unilateral salary reduction does not constitute 'just cause' for termination under FIFA RSTP. It reinforces that clubs bear economic risks and cannot terminate contracts due to financial difficulties caused by COVID-19. The decision also confirms that FIFA DRC decisions in horizontal disputes do not give FIFA standing to be sued at CAS.
Summary
The case concerns an appeal by Kazakh football club FC Kaisar against a FIFA DRC decision awarding compensation to Russian player Alexey Shumskikh for wrongful termination. The player had an employment contract from January to November 2020. In May 2020, the club asked the player to reduce his salary due to COVID-19 funding cuts; the player refused. The club then terminated the contract without notice. The player filed a claim with FIFA DRC, which found the termination without just cause and awarded outstanding salary and compensation. The club appealed to CAS, arguing that the player's refusal to accept a salary reduction was just cause, and that the FIFA DRC lacked jurisdiction. The CAS Sole Arbitrator dismissed the appeal, holding that a player's non-consent to a salary change does not qualify as just cause under FIFA RSTP Article 14 and Swiss law. Economic risks are inherent to a club's enterprise and do not justify termination. The tribunal also rejected the club's jurisdictional challenge, noting it was not raised before FIFA DRC. The award confirmed the FIFA DRC decision, ordering the club to pay KZT 6,000,000 in outstanding salary and KZT 26,044,000 in compensation, plus interest. The club was also ordered to pay CHF 5,000 towards the player's legal costs.
The detail
Parties: Kyzylorda FC “Kaisar” v. FIFA & Alexey Shumskikh
Case number: CAS 2021 A 7795
Outcome: Appeal dismissed; FIFA DRC decision confirmed; FC Kaisar ordered to pay player KZT 6,000,000 outstanding salary plus 5% interest and KZT 26,044,000 compensation for breach of contract without just cause plus 5% interest; FC Kaisar to pay CHF 5,000 towards player's legal costs.
Quantum: KZT 32,044,000 plus interest
Applicable law: FIFA Regulations on the Status and Transfer of Players (RSTP), particularly Articles 14 and 17; Swiss Code of Obligations (SCO) Article 337; CAS Code of Sports-related Arbitration
Issues in play: The case involved the interpretation of 'just cause' for termination under FIFA RSTP Article 14 and Swiss law. The club argued that the player's refusal to accept a salary reduction due to COVID-19 funding cuts constituted just cause, but the tribunal held that economic hardship does not justify unilateral termination.
Read the full decision at Court of Arbitration for Sport (football, via FIFA) ↗
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