CAS 2021 A 7837
CAS · Football (FIFA / CAS) · Switzerland · 7 Nov 2022
Why it matters
This case clarifies that relegation clauses must be expressly included in the player's contract and cannot be incorporated by reference to national association rules. It also confirms that national arbitration tribunals must meet independence standards to exclude FIFA DRC jurisdiction, and that compensation under Article 17 RSTP is calculated based on residual contract value minus mitigation.
Summary
Korona S.A., a Polish football club, unilaterally terminated its employment contract with a Croatian player on 6 August 2020, relying on Article 8(5)(c) of the PZPN Rules, which allowed termination if the club was relegated. The club had been relegated to a lower division. The player challenged the termination before the FIFA Dispute Resolution Chamber (DRC), claiming breach of contract without just cause. The DRC found the club liable, awarding EUR 138,063 in compensation (residual contract value of EUR 142,313 minus EUR 4,250 mitigated by new employment) plus interest. The club appealed to CAS, arguing that the DRC lacked jurisdiction because the contract referred disputes to the PZPN Football Arbitration Court, and that the termination was justified under Polish law. The Sole Arbitrator upheld the DRC decision. He found that the PZPN Rules clause was not incorporated into the contract and did not meet the reciprocity requirement; thus, the club had no just cause. He also held that the DRC had jurisdiction because the contract's arbitration clause was ambiguous and the PZPN tribunal did not meet independence standards. Compensation was correctly calculated under Article 17 RSTP. The appeal was dismissed, and the club was ordered to pay the player EUR 138,063 plus 5% interest from 12 November 2020, and CHF 3,000 towards legal costs.
The detail
Case number: CAS 2021 A 7837
Outcome: Appeal dismissed; FIFA DRC decision confirmed; Club ordered to pay player EUR 138,063 plus interest and CHF 3,000 towards legal costs.
Quantum: EUR 138,063
Applicable law: FIFA Regulations on the Status and Transfer of Players (RSTP), particularly Article 17; Polish law and PZPN Rules; CAS Code of Sports-related Arbitration.
Issues in play: The dispute involved the validity of a relegation clause in PZPN Rules allowing unilateral termination by the club, versus FIFA RSTP requirements for just cause and compensation for breach of contract.
Read the full decision at Court of Arbitration for Sport (football, via FIFA) ↗
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