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CAS 2024 A 10331 (CAS)

Why it matters

This case clarifies the calculation of compensation under Article 17 FIFA RSTP when a player terminates for just cause, emphasizing that the residual value of the contract must be reduced by the player's new earnings and mitigated damages. It also reaffirms the high threshold for overturning a FIFA sporting sanction, requiring a 'very compelling case' to show gross disproportionality.

Summary

Ismaily SC, an Egyptian football club, signed player Firas Chaouat in October 2022. The club failed to pay several salary installments on time. After a default notice and a partial payment, the player terminated the contract in June 2023 for just cause under FIFA RSTP Articles 14 and 14bis. He then signed with a Bahraini club. The FIFA DRC awarded him outstanding salaries and compensation, plus a two-period transfer ban on Ismaily. The club appealed to CAS. The CAS Panel found that the player had just cause to terminate because the club owed more than two months' salary. The Panel recalculated compensation: it started with the residual value of the contract (USD 699,900), deducted the player's new earnings (USD 126,000) and mitigation (USD 262,806.73), resulting in USD 311,093.27. It also awarded USD 16,500 signing fee balance and USD 33,714 in outstanding salaries. The Panel upheld the transfer ban by a majority, finding no compelling reason to overturn it, noting the club's breach during the protected period and its status as a repeat offender. The appeal was partially granted, reducing the amounts but confirming the sanction.

The detail

Parties: Ismaily SC v. Firas Chaouat & FIFA

Case number: CAS 2024 A 10331

Outcome: The appeal was partially upheld. The CAS reduced the compensation and outstanding amounts payable by Ismaily SC to Firas Chaouat to USD 361,307.27 plus interest, and confirmed the two-period transfer ban.

Quantum: USD 361,307.27 plus interest

Applicable law: FIFA Regulations on the Status and Transfer of Players (RSTP), particularly Articles 14, 14bis, and 17; Swiss Code of Obligations (interest); CAS Code of Sports-related Arbitration

Issues in play: The case involved the application of FIFA RSTP Articles 14 and 14bis on termination for just cause due to unpaid salaries, and Article 17 on compensation and sporting sanctions. The Panel also considered the club's Financial Regulations and the player's waiver of earlier default.

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

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