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CAS 2021 A 7927 (CAS)

Why it matters

This case reaffirms the principle that contractual liquidated damages clauses for breach without just cause do not limit compensation when a player terminates with just cause due to non-payment. It clarifies the interplay between contractual freedom and mandatory FIFA regulations, emphasizing that just cause termination triggers the RSTP compensation formula, not the contractually agreed cap. The decision also highlights the procedural requirements for establishing just cause, including the need for a warning and reasonable deadline.

Summary

Al Sailiya FC (Qatar) signed a five-year employment contract with player Gregory Gomis, with a clause capping compensation for termination without just cause at two months' salary. The club failed to pay salaries and acknowledged a debt of QAR 2,000,000. After multiple promises to pay by June 2020, the club still did not pay. In January 2021, Gomis sent a 15-day notice to pay, then terminated the contract for just cause and filed a claim with FIFA's Dispute Resolution Chamber (DRC). The DRC awarded him outstanding remuneration and compensation under Article 17 of the FIFA RSTP, totaling QAR 3,969,000 net for breach of contract. Al Sailiya appealed to CAS, arguing that the DRC lacked jurisdiction because the contract gave exclusive jurisdiction to the Qatar Sports Arbitration Tribunal (QSAT), and that compensation should be capped at two months' salary (QAR 109,000) per the contract. The CAS Sole Arbitrator rejected both arguments. He found that the DRC had jurisdiction under Article 22 RSTP for international disputes, and that the contractual cap only applied to termination without just cause. Since Gomis had just cause (non-payment after notice), the RSTP compensation formula applied. The award confirmed the DRC decision, ordering Al Sailiya to pay the amounts determined by the DRC plus interest, and to contribute CHF 5,000 to Gomis's legal costs.

The detail

Parties: Al Sailiya Football Club v. Gregory Diranth Gomis & FIFA

Case number: CAS 2021 A 7927

Outcome: Appeal dismissed; DRC decision confirmed; Appellant ordered to pay CHF 5,000 to First Respondent for legal costs.

Quantum: QAR 3,969,000 net as compensation for breach of contract without just cause (plus other outstanding amounts and interest)

Applicable law: FIFA Regulations on the Status and Transfer of Players (RSTP), particularly Article 17; Swiss law (Code of Obligations); CAS jurisprudence.

Issues in play: The collision was between the contractual cap on compensation (two months' salary) in Article X.4 of the employment contract and the FIFA RSTP Article 17 standard for compensation when a player terminates with just cause. The tribunal held that the contractual cap only applied to termination without just cause, not to termination with just cause.

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

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