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CAS 2023 A 9790 (CAS)

Why it matters

This case reaffirms the strict application of Article 14bis RSTP, which deems a player to have just cause to terminate if a club fails to pay at least two months' salaries after a 15-day default notice. It clarifies that a club's allegations of poor performance or unauthorized absence do not excuse non-payment, and that a disciplinary acquittal precludes using the same conduct to justify termination. The decision also confirms that the FIFA DRC has jurisdiction absent a clear and exclusive domestic forum clause.

Summary

Swallows FC, a South African club, signed player Daniel Gozar on a two-year contract starting July 2022. The club failed to pay Gozar's salaries for July, October, and December 2022, and portions of his signing-on fee. On 17 January 2023, Gozar's lawyer sent a notice to comply, giving the club 15 days to pay the outstanding ZAR 349,650. The club did not pay, and instead held a disciplinary hearing for alleged missed training sessions, of which Gozar was acquitted. On 2 February 2023, Gozar terminated the contract, citing Article 14bis of the FIFA RSTP, which allows termination with just cause if a club fails to pay at least two months' salaries after a 15-day default notice. The FIFA DRC found that Gozar had just cause and ordered Swallows to pay ZAR 566,200 in outstanding salaries and fees, plus ZAR 1,411,210 as compensation for breach of contract (the remaining value of the contract). Swallows appealed to CAS, arguing that Gozar had de facto terminated the contract earlier by not attending training, and that the DRC lacked jurisdiction due to a clause in the contract referring disputes to South Africa's National Soccer League (NSL) dispute resolution. The CAS Sole Arbitrator dismissed the appeal, holding that: (1) the contract's jurisdiction clause was not clear and exclusive enough to oust FIFA's jurisdiction; (2) Gozar had just cause under Article 14bis because the club failed to pay at least two months' salaries after a proper 15-day notice; (3) the club's allegations of misconduct were not proven and the disciplinary acquittal showed no breach by Gozar; (4) the compensation was correctly calculated under Article 17 RSTP. The award confirmed the DRC decision and ordered Swallows to pay the amounts plus interest and CHF 5,000 towards Gozar's legal costs.

The detail

Parties: Swallows FC v. Daniel Gozar & FIFA

Case number: CAS 2023 A 9790

Outcome: Appeal dismissed; DRC decision confirmed; Swallows FC ordered to pay ZAR 566,200 outstanding remuneration and ZAR 1,411,210 compensation plus interest, and CHF 5,000 towards Gozar's legal costs.

Quantum: ZAR 1,977,410 plus interest and CHF 5,000

Applicable law: FIFA Regulations on the Status and Transfer of Players (RSTP), particularly Articles 14bis and 17; South African law per contract clause 2.3; CAS Code of Sports-related Arbitration.

Issues in play: Whether the player had just cause to terminate his contract under Article 14bis RSTP due to non-payment of at least two months' salaries, and whether the club's failure to register the player or allegations of misconduct justified non-payment.

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

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