CAS 2023 A 9826
CAS · Football (FIFA / CAS) · Switzerland · 19 Sept 2024
Why it matters
This case clarifies the application of force majeure in football transfer disputes involving international sanctions. The CAS panel held that a party cannot rely on force majeure if the impediment existed before the contract was amended and if the party failed to explore all alternative payment methods. It also confirmed that losses from FIFA's Annexe 7 (allowing foreign players to suspend contracts) cannot be off-set against transfer fees.
Summary
PFC CSKA (Russia) and S.C. Heerenveen (Netherlands) entered a transfer agreement for player Chidera Ejuke in August 2020, with a total fee of EUR 11,250,000 payable in instalments. After Russia's invasion of Ukraine in February 2022, CSKA and its banks were placed on the US SDN List, making international payments difficult. The parties amended the payment schedule three times, the last on 24 June 2022 (Third Amendment), which set an instalment of EUR 3,250,000 (minus solidarity contributions) due on 15 August 2022. CSKA failed to pay. Heerenveen filed a claim with the FIFA Players' Status Chamber (PSC), which ordered CSKA to pay EUR 3,126,767.14 plus 3% interest from 1 May 2022, and warned of a registration ban if unpaid. CSKA appealed to CAS, arguing force majeure (sanctions) and that it should be allowed to off-set losses from the Player's suspension under FIFA's Annexe 7. The CAS panel dismissed the appeal. It applied Swiss law on force majeure (Art. 119 CO) and found that CSKA failed to prove impossibility: it did not show it had exhausted all payment methods (e.g., paying via a third party or in Chinese Yuan as allowed by the contract). Moreover, the impediment existed before the Third Amendment was signed, so it was foreseeable. The panel also rejected CSKA's set-off claim, noting no contractual or legal basis to deduct losses from Annexe 7. The decision confirms that contractual obligations remain binding despite sanctions, and parties must actively seek alternative performance methods.
The detail
Parties: PFC CSKA v. S.C. Heerenveen B.V. & FIFA
Case number: CAS 2023 A 9826
Outcome: CAS dismissed CSKA's appeal and upheld the FIFA PSC decision ordering CSKA to pay Heerenveen EUR 3,126,767.14 plus 3% interest from 1 May 2022.
Quantum: EUR 3,126,767.14 plus interest
Applicable law: FIFA Regulations on the Status and Transfer of Players (RSTP), including Annexe 7; Swiss law; Transfer Agreement as amended.
Issues in play: Force majeure under Swiss law vs. contractual payment obligations; CSKA argued sanctions prevented payment, but the panel found the impediment was not impossible to overcome and was foreseeable when the Third Amendment was signed.
Read the full decision at Court of Arbitration for Sport (football, via FIFA) ↗
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