CAS 2021 A 8017
CAS · Football (FIFA / CAS) · Switzerland · 28 Nov 2022
Why it matters
This award underscores the strict enforcement of financial obligations in international football under FIFA's regulatory framework and CAS jurisdiction. It clarifies that clubs cannot unilaterally apply domestic contract law principles like set-off to justify non-compliance with prior arbitral awards or FIFA decisions, especially when no actual payment has been made. The case also reaffirms the CAS's power of de novo review for sanctions while upholding the proportionality of the fine imposed by FIFA.
Summary
Al-Hilal Club Sudan appealed a decision by the FIFA Disciplinary Committee (FDC) that had sanctioned the club for failing to pay an amount owed to its former coach, Sergio Ricardo de Paiva Farias. The FDC's decision, stemming from a previous CAS award and a FIFA Players' Status Committee decision, ordered Al-Hilal to pay USD 35,000 and imposed a CHF 5,000 fine, along with an automatic transfer ban for non-compliance. Al-Hilal argued that it had not failed to comply, asserting a right to set off costs from a previous arbitration against the amount owed, reducing the net amount to USD 10,657.05. The club claimed the coach refused to accept this adjusted amount and invoked articles from the Swiss Code of Obligations (SCO) to support its set-off and default arguments. The Court of Arbitration for Sport (CAS), through a Sole Arbitrator, dismissed Al-Hilal's appeal. The Arbitrator found that Al-Hilal had failed to make any payment to the coach, rendering its set-off arguments based on the SCO irrelevant in the context of compliance with a prior CAS award and FIFA regulations. The CAS confirmed that the primary issue was the club's failure to satisfy its payment obligations. The CHF 5,000 fine imposed by FIFA was deemed proportionate. The coach's requests for additional, harsher penalties were rejected as inadmissible counterclaims in an appeal procedure. Consequently, Al-Hilal Club Sudan was ordered to bear the full arbitration costs and pay CHF 2,000 to the coach as a contribution towards his legal expenses. The FIFA Disciplinary Committee's decision, including the fine and the automatic transfer ban, was upheld.
The detail
Parties: Al Hilal Club v. FIFA & Sergio Ricardo de Paiva Farias
Case number: CAS 2021 A 8017
Outcome: The appeal by Al-Hilal Club Sudan was dismissed, confirming the FIFA Disciplinary Committee's decision, and Al-Hilal was ordered to pay CHF 2,000 to Sergio Ricardo de Paiva Farias for legal costs.
Quantum: CHF 2,000
Applicable law: CAS Code of Sports-related Arbitration (2021 edition), FIFA Disciplinary Code (2019 ed.), FIFA Statutes (2020 ed.), Swiss Private International Law Act (PILA), Swiss Code of Obligations (SCO).
Issues in play: The case primarily involved the application of FIFA regulations and the CAS Code concerning appeals and sanctions for non-compliance with financial decisions. The Appellant attempted to invoke principles from the Swiss Code of Obligations (SCO) regarding set-off and default to justify non-payment, but the CAS found these arguments largely irrelevant in the context of established FIFA and CAS jurisprudence on compliance with prior awards.
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