Club Galatasaray A.S. v. Hugo Issa (CAS 2012/A/3025)
CAS · Football (FIFA / CAS) · Switzerland · 30 August 2013
Why it matters
This case clarifies that when a player is loaned, the original club's obligation to pay the agent's commission is suspended because there is no salary from which to deduct it. It reinforces the common practice in football that agent fees are deducted from the player's salary, and if the player is not paid by the club, the club has no duty to pay the agent.
Summary
The case involves a dispute between Club Galatasaray (the Club) and player agent Hugo Issa over commission payments for the 2010/2011 season. The Player, M., signed a representation agreement with Issa in 2005, and later a contract with Galatasaray in 2006. A Payment Contract was signed by the Club, Issa, and the Player, stating the Club would pay Issa USD 110,000 for the first two years and 10% of the Player's salary for the remaining three years. The Player also signed a letter authorizing the Club to deduct commission from his salary. However, from 2008 to 2011, the Player was loaned to three different clubs. During these loans, the Player's salary from Galatasaray was suspended, and the loan clubs paid him. Issa claimed commission for the 2010/2011 season, and FIFA's Players' Status Committee awarded him USD 75,000. Galatasaray appealed to CAS, arguing that since the Player was on loan and not receiving salary from them, they had no obligation to pay commission. The CAS Sole Arbitrator held that the Payment Contract was merely a mechanism for the Club to deduct commission from the Player's salary on his behalf. Since the Player was on loan and not paid by Galatasaray, there was no salary to deduct from, and thus no obligation to pay Issa. The appeal was upheld, and the FIFA decision was set aside.
The detail
Parties: Club Galatasaray AS v Hugo Issa
Case number: CAS 2012/A/3025
Outcome: Appeal upheld; no sum payable by Club Galatasaray to Hugo Issa.
Applicable law: FIFA Regulations on the Status and Transfer of Players, FIFA Players' Agents Regulations, Swiss law
Issues in play: Whether a club must pay an agent's commission when the player is on loan and not receiving salary from the club; interpretation of the Payment Contract and the Player's Letter.
Read the full decision at Court of Arbitration for Sport (football, via FIFA) ↗
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