Award

CAS 2023 A 9622

CAS · Football (FIFA / CAS) · Switzerland · 19 Mar 2024

Why it matters

This case clarifies the application of Article 17 RSTP regarding unilateral termination without just cause, particularly the calculation of compensation using the residual value method and the treatment of performance bonuses as salary. It also addresses the timing of termination and the concept of 'protected period', reinforcing that a player cannot artificially delay termination to avoid consequences.

Summary

The case involves a dispute between Angers SCO (French club), Ilyes Cheti (Algerian player), and Espérance Sportive de Tunis (Tunisian club) over the player's unilateral termination of his contract. The player signed a four-year contract with ES Tunis in July 2019. After repeated late salary payments, the player sent a notice of termination on 26 June 2022, effective 1 July 2022, claiming just cause. ES Tunis argued the termination was without just cause and occurred during the protected period. The FIFA Dispute Resolution Chamber (DRC) found the termination effective on 26 June 2022 (within the protected period) and without just cause, ordering the player to pay EUR 970,000 compensation and imposing a 4-month suspension on the player and a two-window transfer ban on Angers. Both the player and Angers appealed to CAS. The CAS Panel reviewed the facts and found that the player did not have just cause to terminate because the salary arrears were not sufficiently serious to justify termination as a last resort. However, the Panel recalculated the compensation using the residual value method: the remaining value of the player's contract with ES Tunis (EUR 280,000) and the new contract with Angers (EUR 368,000) were averaged to EUR 324,000, plus the unamortized transfer fee (EUR 70,000), totaling EUR 394,000. The Panel also reduced the player's suspension from 4 to 2 months, considering the player's clean record and the circumstances. The transfer ban on Angers was upheld because Angers signed the player despite warnings from ES Tunis. The award was rendered on 19 March 2024.

The detail

Parties: & 9624 Angers SCO v. Espérance Sportive de Tunis, FIFA et Ilyes Cheti

Case number: CAS 2023 A 9622

Outcome: The CAS Panel partially upheld the appeals, reducing the compensation from EUR 970,000 to EUR 394,000, and reducing the player's suspension from 4 months to 2 months, while confirming the transfer ban on Angers.

Quantum: EUR 394,000

Applicable law: FIFA Regulations on the Status and Transfer of Players (RSTP), particularly Article 17; Swiss law; CAS procedural rules

Issues in play: The key legal issue was whether the player had just cause to terminate his contract before the protected period ended, and how to calculate compensation under Article 17 RSTP, including the 'positive interest' principle and the residual value method.

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

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