CAS 2023 A 9368
CAS · Football (FIFA / CAS) · Switzerland · 26 Sept 2024
Why it matters
This case clarifies the interplay between national insolvency proceedings and FIFA disciplinary sanctions. It confirms that a club subject to a binding pre-insolvency agreement that restricts its ability to freely manage assets may avoid disciplinary sanctions for non-compliance with a FIFA DRC decision, as long as the club is acting in accordance with the agreement. The decision underscores the discretion of the FIFA Disciplinary Committee to close proceedings under Article 55(b) and highlights the importance of national court decisions in football disputes.
Summary
The case involves a professional football player (the Appellant) who had a contract with Radnicki Nogometni Klub Split (the Club). The contract was terminated by mutual agreement, with the Club agreeing to pay EUR 20,000. The Club failed to pay, and the FIFA DRC Judge ordered the Club to pay EUR 20,000 plus interest. The Club initiated pre-insolvency proceedings in Croatia, and a Pre-Insolvency Agreement was approved by the Commercial Court of Split, reducing the player's claim to 30% (EUR 6,000) payable in 60 monthly instalments. The player voted against the plan but it was approved by a majority of creditors. The player then sought disciplinary action against the Club for non-compliance with the FIFA DRC decision. The FIFA Disciplinary Committee closed the proceedings under Article 55(b) of the FIFA Disciplinary Code, finding that the Pre-Insolvency Agreement prevented the Club from freely managing its assets and complying with the original decision. The player appealed to CAS. The Sole Arbitrator upheld the FIFA Disciplinary Committee's decision, reasoning that the Club was legally bound by the Pre-Insolvency Agreement, which restricted its ability to pay the full amount. The Arbitrator noted that the Club had not acted in bad faith and that the player's claim was being addressed through the agreed restructuring plan. The appeal was dismissed, and the decision to close disciplinary proceedings was confirmed.
The detail
Parties: S. v. Radnicki Nogometni Klub Split & FIFA
Case number: CAS 2023 A 9368
Outcome: The appeal is dismissed; the FIFA Disciplinary Committee's decision to close proceedings against the Club is confirmed.
Applicable law: FIFA Disciplinary Code (Article 55(b)); CAS Code of Sports-related Arbitration
Issues in play: Whether a pre-insolvency agreement under Croatian law that reduced the player's claim to 30% and imposed a payment plan prevented the club from complying with a FIFA DRC decision, thus justifying closure of disciplinary proceedings under Article 55(b) of the FIFA Disciplinary Code.
Read the full decision at Court of Arbitration for Sport (football, via FIFA) ↗
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