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CAS 2022 A 9231 (CAS)

Why it matters

This case clarifies that a signed offer letter can be a binding employment contract under FIFA RSTP if it contains essential terms and is accepted unconditionally. It also illustrates the calculation of compensation for breach, including mitigation by subsequent earnings, and confirms joint and several liability of the new club. The decision reinforces the importance of due diligence when signing players.

Summary

Raja Casablanca sent a signed offer letter to player Fabrice Olinga Essono on 1 December 2021, offering a 1.5-year contract with specific salary, signing bonus, and performance bonus. The player signed the offer as 'pour acceptation'. After further negotiations, the player signed an employment contract with Rio Ave on 20 December 2021 and refused to travel to Morocco. Raja Casablanca filed a claim with the FIFA DRC, which found the offer to be a binding contract and ordered the player to pay compensation of MAD 1,723,034.65, with Rio Ave jointly and severally liable. The DRC also imposed a four-month playing ban on the player and a two-window registration ban on Rio Ave. Rio Ave appealed to CAS. The Sole Arbitrator confirmed that the offer was a binding employment contract under FIFA RSTP and Swiss law, as it contained essential terms and was signed without reservation. However, the Arbitrator recalculated compensation: he excluded the performance bonus (conditional on playing time) and deducted the salary the player earned under the Rio Ave contract for the overlapping period. The final compensation was set at MAD 953,930.71. The sporting sanctions were upheld. The appeal was partially upheld.

The detail

Parties: Rio Ave v. Raja Casablanca & FIFA

Case number: CAS 2022 A 9231

Outcome: Rio Ave's appeal partially upheld; compensation reduced from MAD 1,723,034.65 to MAD 953,930.71; Rio Ave jointly and severally liable; Player's four-month ban and Rio Ave's two-window registration ban remain.

Quantum: MAD 953,930.71

Applicable law: FIFA Regulations on the Status and Transfer of Players (RSTP), particularly Articles 17 and 18; Swiss law as subsidiary

Issues in play: Whether a signed offer letter constitutes a binding employment contract under FIFA RSTP and Swiss law; calculation of compensation for breach of contract without just cause.

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

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