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CAS 2023 A 10003 (CAS)

Why it matters

This case reinforces the principle that persistent non-payment of salaries (even partial) can constitute just cause for a player to terminate a contract. It also highlights the importance of good faith in CAS proceedings, as the tribunal dismissed fabricated evidence submitted by the club, ordering it to bear all costs and pay contributions to the respondents.

Summary

FK Liepāja appealed a FIFA DRC decision that found the player Slaviša Radović had just cause to terminate his contract due to unpaid salaries. The CAS Sole Arbitrator confirmed the DRC's decision. The player had not received full salary for several months, and after putting the club in default, he terminated the contract and signed with FK Sarajevo. The club argued the debt was insufficient to justify termination and counterclaimed EUR 350,000 under a liquidated damages clause. The tribunal found that the club's failure to pay at least two monthly salaries on time created a presumption of just cause, which the club failed to rebut. The compensation was calculated as the residual value of the contract (EUR 66,000) minus amounts earned with Sarajevo (EUR 2,555), resulting in EUR 63,445. The club's attempt to introduce a fabricated annex showing higher salary was disregarded. The appeal was dismissed, and the club was ordered to pay the player's outstanding salaries, compensation, and contributions to all respondents' legal costs.

The detail

Parties: FK Liepāja v. Slaviša Radović & FK Sarajevo & FIFA

Case number: CAS 2023 A 10003

Outcome: Appeal dismissed; FIFA DRC decision confirmed; FK Liepāja ordered to pay outstanding remuneration and compensation to the player, plus costs and contributions to respondents' legal fees.

Quantum: EUR 63,445 compensation plus EUR 600, 581, 1,500, 1,800, 1,500, 1,460 outstanding remuneration (total EUR 69,886) plus interest

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

Issues in play: Whether the player had just cause to terminate his contract due to unpaid salaries, and whether the club's counterclaim for EUR 350,000 liquidated damages was valid. The key issue was the interpretation of 'just cause' under FIFA RSTP and Swiss law.

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

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