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CAS 2023 A 9419 (CAS)

Why it matters

This case clarifies the strict interpretation of force majeure clauses in football transfer settlement agreements, requiring clear evidence of a qualifying event. It also reaffirms that FIFA has no standing to be sued in CAS appeals when it merely acted as a first-instance decision-maker, and that automatic disciplinary consequences under Article 24 RSTP are not appealable until implemented.

Summary

Pyramids FC appealed a FIFA PSC decision ordering it to pay Huddersfield Town AFC outstanding instalments and a contractual penalty under a settlement agreement. The dispute arose from the transfer of player Ramadan Sobhi. The settlement included a force majeure clause allowing renegotiation of payment dates if the Egyptian season was suspended or extended due to force majeure such as COVID-19. Pyramids argued that the extension of the 2021/2022 season and delay of the 2022/2023 season triggered the clause. The FIFA PSC rejected this, finding no evidence of force majeure and that the clause required both an official decision and mutual agreement, neither of which occurred. The CAS Sole Arbitrator upheld the decision, applying Swiss law and FIFA regulations. The Arbitrator also dismissed Pyramids' claims against FIFA, holding that FIFA lacked standing to be sued as it was only the first-instance body. The appeal was dismissed, and Pyramids was ordered to pay the outstanding amounts and penalty.

The detail

Parties: Pyramids FC v. Huddersfield Town AFC & FIFA

Case number: CAS 2023 A 9419

Outcome: Appeal dismissed; FIFA PSC decision upheld. Pyramids FC ordered to pay Huddersfield Town AFC GBP 229,891.85 plus 5% interest p.a. from 31 August 2022, and GBP 45,978.37 contractual penalty.

Quantum: GBP 275,870.22 plus interest

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

Issues in play: Interpretation of force majeure clause in settlement agreement; application of pacta sunt servanda; standing of FIFA as respondent in CAS appeals.

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

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