CAS 2022 A 8967
CAS · Football (FIFA / CAS) · Switzerland · 5 Apr 2024
Why it matters
This case clarifies the interplay between private contractual waivers of FIFA jurisdiction and FIFA's regulatory competence. It confirms that a player and club can validly agree to exclude FIFA jurisdiction for disputes between them, but such a waiver does not automatically bind a new club not party to the agreement. The decision also underscores the de novo powers of CAS but remands for first-instance hearing where a party was not heard.
Summary
The case arose from a dispute over the transfer of Argentine player Alejandro Gamarra from New York Red Bulls (operated by Red Bull New York, Inc.) to Saudi club Al-Taawoun. The Player had signed a Standard Player Agreement with MLS in 2018, which included an option for extension and a clause waiving any right to bring disputes before FIFA, instead submitting to an expedited arbitration under the MLS Collective Bargaining Agreement (CBA). Red Bull New York claimed it exercised the option in February 2020, extending the contract through 2021. The Player disputed this and signed with Al-Taawoun in January 2021. Red Bull New York filed a claim with FIFA against the Player and Al-Taawoun for breach of contract and inducing breach. The FIFA DRC declared the claim inadmissible for lack of jurisdiction, citing the waiver clause. Red Bull New York appealed to CAS. The CAS Panel held that the waiver of FIFA jurisdiction in the Player Agreement was valid and binding between the Club and the Player, as it was part of a collective bargaining agreement and the parties had clearly agreed to an exclusive domestic arbitration mechanism. Therefore, the claim against the Player was inadmissible. However, the Panel found that Al-Taawoun, not being a party to that agreement, was not bound by the waiver. FIFA retained jurisdiction over the claim against Al-Taawoun under Article 22(1)(b) RSTP. Since the FIFA DRC had not examined the merits, the Panel referred the claim against Al-Taawoun back to the FIFA DRC for a de novo hearing. The appeal was dismissed against the Player and partially upheld against Al-Taawoun.
The detail
Parties: Red Bull New York v. Alejandro Gamarra, Al-Taawoun & FIFA
Case number: CAS 2022 A 8967
Outcome: Appeal dismissed against the Player; appeal partially upheld against Al-Taawoun, matter referred back to FIFA DRC.
Applicable law: FIFA Regulations on the Status and Transfer of Players (RSTP), MLS Standard Player Agreement, Collective Bargaining Agreement (CBA) between MLS and MLSPA, US federal common labor law
Issues in play: The case involved a conflict between the exclusive dispute resolution mechanism in the MLS CBA/Player Agreement (waiving FIFA jurisdiction) and FIFA's default jurisdiction under Article 22 RSTP for international employment disputes. The Panel had to determine whether the waiver was valid and binding on the parties.
Read the full decision at Court of Arbitration for Sport (football, via FIFA) ↗
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