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CAS 2021 A 8539 (CAS)

Why it matters

This case clarifies the scope of FIFA's jurisdiction over employment disputes involving coaches, particularly the distinction between a 'coach' and a 'fitness coach'. It also reinforces the principle that a unilateral demotion to a substantially different role can constitute a breach of contract justifying termination with just cause, and sets a precedent for calculating compensation based on the residual value of the contract.

Summary

FC Basel 1893 AG employed Ignacio Torreño Jarabo as an assistant coach and head of performance for the first team. In January 2021, the club released him from duties. After negotiations failed, the club revoked the release and assigned him to youth teams, where he had no clear role. The employee terminated the contract for just cause and claimed compensation. FIFA's Players' Status Chamber found the club breached the contract and ordered CHF 700,000 compensation. The club appealed to CAS, arguing FIFA lacked jurisdiction because the employee was a fitness coach, not a coach under FIFA RSTP. The CAS Panel held that the employee's duties as assistant coach and head of performance qualified him as a coach under FIFA RSTP, so FIFA had jurisdiction. On the merits, the Panel found the club's demotion to youth teams without meaningful duties was a breach of contract, justifying termination with just cause. The Panel upheld the compensation amount based on the residual value of the contract. The appeal was dismissed.

The detail

Parties: FC Basel 1893 AG v. Ignacio Torreño Jarabo & FIFA

Case number: CAS 2021 A 8539

Outcome: The CAS Panel dismissed the appeal and confirmed the FIFA decision that the club breached the employment contract and must pay compensation.

Quantum: CHF 700,000

Applicable law: FIFA Regulations on the Status and Transfer of Players (RSTP), Swiss law, and the employment contract

Issues in play: The dispute involved the classification of the employee as a 'coach' under FIFA RSTP versus a 'fitness coach' not covered by FIFA rules, and whether the club's demotion of the employee to youth teams constituted a breach of contract.

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

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