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CAS 2022 A 8685 (CAS)

Why it matters

This award clarifies that a club's failure to participate in FIFA DRC proceedings despite proper notification constitutes tacit acceptance of DRC jurisdiction, even if the contract contains a CAS clause. It also reinforces the strict requirements for just cause termination under Article 14bis RSTP, including the need for proper notice and default periods.

Summary

Pyramids FC appealed a FIFA DRC decision ordering it to pay USD 425,000 to player Abdu Lumala for unpaid salaries and compensation for breach of contract. The club argued the DRC lacked jurisdiction because the contract had a CAS clause, and that it was not properly notified of the proceedings. The CAS Sole Arbitrator found that the club tacitly accepted DRC jurisdiction by not raising the issue before the DRC, and that FIFA's notifications were properly sent to the club's registered TMS email. On the merits, the club failed to prove it paid the outstanding salaries or that the player's termination was unjustified. The player had sent two default notices to the club's email addresses, which were presumed received. The award upheld the DRC's decision, including the compensation amount and the ban on registering new players if unpaid.

The detail

Parties: Pyramids FC v. Abdu Lumala & FIFA

Case number: CAS 2022 A 8685

Outcome: Appeal dismissed; FIFA DRC decision upheld: Pyramids FC to pay USD 200,000 outstanding remuneration and USD 225,000 compensation plus interest.

Quantum: USD 425,000 plus interest

Applicable law: FIFA Regulations on the Status and Transfer of Players (RSTP), Swiss law, CAS Code of Sports-related Arbitration

Issues in play: The case involved the collision between contractual arbitration clauses (CAS jurisdiction) and FIFA DRC's regulatory jurisdiction, as well as the requirements for just cause termination under Article 14bis RSTP.

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

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