CAS 2023 A 9670
CAS · Football (FIFA / CAS) · Switzerland · 13 Nov 2024
Why it matters
This case clarifies the scope of joint and several liability under Article 17.2 RSTP, confirming that a new club's liability is accessory to the player's liability and not automatically tied to the new club's profit. It also upholds the FIFA DRC's discretion in quantifying compensation, even when a national tribunal (TAD) had already set a different amount. The decision reinforces that the new club's benefit from a subsequent transfer is not necessarily the former club's damage.
Summary
The dispute arose from the termination of player Rafael Leão's contract with Sporting CP. Leão terminated his contract in June 2018, claiming Sporting failed to protect him after fan violence. The Portuguese CAP and TAD ruled on the termination and compensation. TAD ordered Leão to pay Sporting €16,500,000 for breach of contract, finding the €45,000,000 liquidated damages clause manifestly excessive. Leão then signed with LOSC Lille, who later transferred him to AC Milan for €29,000,000. Sporting sought compensation from LOSC under Article 17.2 RSTP, which holds new clubs severally liable for the player's debt. The FIFA DRC ordered LOSC to pay €16,500,000 plus interest. Both LOSC and Sporting appealed to CAS. LOSC argued it was not liable because Leão's liability was not established, and the compensation was excessive. Sporting argued the compensation should be higher, equating LOSC's profit from the transfer to its damage. The CAS Panel rejected both appeals, upholding the FIFA DRC decision. The Panel found that LOSC's liability was accessory to Leão's, but that Leão's liability had been established by TAD and the previous CAS award. The Panel also held that Sporting failed to prove that LOSC's profit from the transfer to AC Milan constituted Sporting's damage. The Panel confirmed the €16,500,000 compensation, noting that both TAD and FIFA DRC had arrived at the same amount. Since the amount had already been paid, no further payment was required. The Panel also dismissed LOSC's argument that a recent CJEU decision (C-650/22) affected the case, as the dispute was already concluded.
The detail
Parties: & 9671 LOSC Lille v. Sporting Club de Portugal & FIFA
Case number: CAS 2023 A 9670
Outcome: Both appeals dismissed; FIFA DRC decision confirmed; LOSC ordered to pay Sporting €16,500,000 plus 5% interest from 9 August 2018, but payment already made.
Quantum: €16,500,000
Applicable law: FIFA Regulations on Status and Transfer of Players (RSTP), particularly Article 17; Swiss Code of Obligations; Portuguese law (TAD decision).
Issues in play: The collision was between the principle of joint and several liability under Article 17.2 RSTP and the quantification of damages for breach of contract, including whether the new club's profit should equal the former club's damage.
Read the full decision at Court of Arbitration for Sport (football, via FIFA) ↗
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