CAS 2022 A 8959
CAS · Football (FIFA / CAS) · Switzerland · 5 Apr 2024
Why it matters
This case clarifies that FIFA has no standing to be sued in CAS appeals arising from contractual disputes between clubs, as FIFA acts as a first-instance adjudicator, not as a party with a stake. It reinforces the distinction between membership-related decisions and contractual disputes, and confirms that penalty clauses in settlement agreements are enforceable under FIFA RSTP.
Summary
FC Porto appealed a FIFA decision ordering it to pay Club América outstanding transfer fees and a penalty for late payment under a settlement agreement. Porto had signed two transfer agreements for players Marchesin and Uribe, but failed to pay the final installments. The parties entered a settlement agreement requiring Porto to pay €5,650,152.41 in two installments, with a 10% penalty for late payment. Porto paid the first installment but only partially paid the second, leading Club América to seek enforcement. FIFA's Players' Status Chamber ordered Porto to pay the outstanding amount plus penalty. Porto appealed to CAS, arguing that FIFA should be a respondent and that the penalty was excessive. The Sole Arbitrator upheld the FIFA decision, finding that Porto breached the settlement agreement. He reduced the penalty to reflect partial payments made during proceedings, ordering Porto to pay EUR 643,342.14 plus interest and EUR 161,671.79 as the balance of the penalty. The arbitrator also dismissed the appeal against FIFA, holding that FIFA has no standing to be sued in contractual disputes between clubs, as it merely exercises a jurisdictional function. The case confirms that settlement agreements with penalty clauses are binding and that FIFA is not a proper respondent in such appeals.
The detail
Parties: Futebol Clube do Porto v. Club de Fútbol América & FIFA
Case number: CAS 2022 A 8959
Outcome: Porto's appeal dismissed; Porto ordered to pay Club América EUR 643,342.14 plus interest and EUR 161,671.79 penalty; FIFA has no standing to be sued.
Quantum: EUR 805,013.93 plus interest
Applicable law: FIFA Regulations on the Status and Transfer of Players (RSTP), Swiss Civil Code (SCC), CAS Code of Sports-related Arbitration
Issues in play: A club's, player's or agent's rights against FIFA's regulations and decisions, on appeal to sport's supreme tribunal.
Read the full decision at Court of Arbitration for Sport (football, via FIFA) ↗
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