CAS 2023 A 9636
CAS · Football (FIFA / CAS) · Switzerland · 15 Jan 2025
Why it matters
This case clarifies the limits of a club's right to assign a player to a reserve team under Article 14 RSTP. It confirms that a demotion without valid sporting reasons, combined with salary non-payment, can constitute abusive conduct justifying termination with just cause. The award also applies the 'three additional months' rule for compensation and addresses mitigation of damages, providing guidance on how to calculate compensation when a player finds new employment at a lower salary.
Summary
The case concerns a dispute between Hungarian football club Mezőkövesd Zsóry Futball Club LLC and Bulgarian player Antonio Vutov. The player signed a three-season employment contract in September 2020. In June 2022, the Club informed the player he was demoted to the second team (fourth amateur tier) indefinitely, citing poor performance due to injuries and personal issues. The player objected, claiming the demotion was abusive and aimed at forcing him to terminate the contract. The Club also failed to pay his May 2022 salary. After failed attempts to resolve the issue, the player terminated the contract on 14 July 2022, citing just cause under Article 14 RSTP. He filed a claim with the FIFA Dispute Resolution Chamber (DRC), which awarded him HUF 3,650,000 in outstanding remuneration and HUF 43,800,000 as compensation for breach of contract. The Club appealed to CAS. The Sole Arbitrator found that the Club's demotion of the player was not based on valid sporting reasons but was an abusive measure intended to pressure the player to leave, constituting a breach of contract. The non-payment of salary further justified termination. The Arbitrator confirmed the compensation amount, applying the FIFA RSTP rule that compensation includes the remaining value of the contract plus three additional months' salary, minus mitigated earnings. The player had signed with FK Lokomotiv Sofia at a lower salary, mitigating HUF 3,541,111.46. The Arbitrator held that the three additional months' salary (HUF 10,950,000) offset the mitigation, so the total compensation remained HUF 43,800,000. The appeal was partially upheld only to set aside the overdue payables award (which the player did not contest). The Club was ordered to pay the compensation plus interest and contribute CHF 5,000 to the player's legal fees.
The detail
Parties: Mezőkövesd Zsóry Futball Club LLC v. Antonio Vutov & FIFA
Case number: CAS 2023 A 9636
Outcome: The appeal was partially upheld: the FIFA DRC decision was confirmed except for the award of overdue payables (HUF 3,650,000) which was set aside; the Club was ordered to pay HUF 43,800,000 as compensation for breach of contract plus interest at 5% p.a. from 16 July 2022.
Quantum: HUF 43,800,000
Applicable law: FIFA Regulations on the Status and Transfer of Players (RSTP), particularly Articles 14 and 14bis; Swiss law as subsidiary; CAS jurisprudence.
Issues in play: The case involved the interpretation of Article 14 RSTP (just cause for termination) and Article 14bis (abusive conduct). The key issue was whether the Club's demotion of the player to the second team and non-payment of salary constituted abusive conduct giving just cause for termination.
Read the full decision at Court of Arbitration for Sport (football, via FIFA) ↗
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