CAS 2023 A 9754
CAS · Football (FIFA / CAS) · Switzerland · 25 Oct 2024
Why it matters
This case clarifies the interpretation of termination agreements in football, particularly the distinction between unconditional agreed compensation and conditional transfer fee payments. It confirms that a clear contractual deadline for compensation is binding and not extended by later clauses. The award also limits Article 12bis RSTP to disciplinary sanctions, not substantive debt obligations, reinforcing that default interest accrues automatically from the contractual due date under Swiss law.
Summary
Pyramids FC (Egypt) and player Amor Layouni terminated their employment agreement on 15 January 2021. The termination agreement required Pyramids to pay Layouni USD 300,000 as agreed compensation by 31 December 2022, and also to pass on transfer fee instalments from the new club (Valerenga) within ten days of receipt. Pyramids did not pay the USD 300,000 by the deadline. Layouni filed a claim with the FIFA DRC, which ordered Pyramids to pay the amount plus 5% interest from 1 January 2023. Pyramids appealed to CAS, arguing that clause 2.1(h) of the termination agreement extended the payment deadline to end of June 2023. The CAS Sole Arbitrator dismissed the appeal, holding that the plain language of clause 2.1(b) set a hard deadline of 31 December 2022 for the agreed compensation, while clause 2.1(h) referred only to the final deadline for the third transfer fee instalment from the new club. The Arbitrator also rejected Pyramids' argument that Article 12bis RSTP required a formal default notice before the debt became overdue, explaining that Article 12bis only governs disciplinary sanctions, not substantive payment obligations. Under Swiss law (Article 102(2) SCO), the debtor is automatically in default upon expiry of the contractual deadline. The award confirms the DRC decision and orders Pyramids to pay the outstanding amount plus interest and contribute to legal costs.
The detail
Parties: Pyramids FC v. Amor Layouni & FIFA
Case number: CAS 2023 A 9754
Outcome: Appeal dismissed; FIFA DRC decision confirmed; Pyramids FC ordered to pay USD 300,000 plus 5% interest p.a. from 1 January 2023 to Amor Layouni, and pay CHF 5,000 to Layouni and CHF 1,000 to FIFA for legal costs.
Quantum: USD 300,000
Applicable law: FIFA Regulations on the Status and Transfer of Players (RSTP), Swiss Code of Obligations (SCO), CAS Code of Sports-related Arbitration
Issues in play: Interpretation of a termination agreement: whether the deadline for payment of agreed compensation (USD 300,000) was 31 December 2022 or extended to end of June 2023. Also, whether Article 12bis RSTP requires a formal default notice for the debt to be overdue.
Read the full decision at Court of Arbitration for Sport (football, via FIFA) ↗
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