Microsoft Word - 7272 et al Award (FINAL w signatures).docx
CAS · Football (FIFA / CAS) · Switzerland · 27 Apr 2022
Why it matters
This award clarifies the application of Article 17 RSTP in cases where a player claims just cause based on alleged third-party ownership (TPO) and regulatory constraints. It also addresses the automatic joint liability of a new club under Article 17.2 and the rebuttable presumption of inducement under Article 17.4. The Panel's decision to cancel sporting sanctions due to the player's vulnerable position and the club's confusing arrangements sets a precedent for considering equitable factors in breach of contract cases.
Summary
The case involves a Brazilian player, Ronielson da Silva Barbosa, who signed a preliminary contract and a loan agreement with Japanese club Albirex Niigata, structured as a loan from Cruzeiro with an option to make it permanent. The player alleged that the agreements contained illegal third-party ownership (TPO) clauses and that he was pressured to sign. After the loan ended, the player refused to extend and returned to Brazil, claiming the contract was void. He later signed with CAP and then Palmeiras. Albirex claimed breach of contract. The FIFA DRC awarded compensation of USD 1,129,499 against the Player and CAP jointly, and imposed sporting sanctions. On appeal, the CAS Panel found that the Player had just cause to terminate the Albirex contract due to the club's failure to explain regulatory constraints and the confusing contractual structure, which amounted to a breach of good faith. However, the Panel held that the Player still breached the contract by not formally terminating before signing with CAP. The compensation was upheld, but sporting sanctions were cancelled because the Player was treated as an object and CAP did not induce the breach. Palmeiras' appeal was dismissed as it was not the 'new club' at the time of breach.
The detail
Parties: Microsoft Word - 7272 et al Award (FINAL w signatures).docx
Outcome: The CAS Panel dismissed Palmeiras' appeal, partially upheld the Player's appeal (cancelling his sporting sanction), dismissed Albirex's appeal, and partially upheld CAP's appeal (cancelling its sporting sanction). The compensation of USD 1,129,499 plus interest payable by the Player and CAP jointly was confirmed.
Quantum: USD 1,129,499
Applicable law: FIFA Regulations on the Status and Transfer of Players (RSTP), particularly Articles 17 and 18bis; Swiss law as subsidiary law.
Issues in play: The case involved the interpretation of Article 17 RSTP (breach of contract without just cause) and Article 18bis (third-party ownership). The Panel considered whether the Player had just cause to terminate his contract with Albirex due to alleged illegalities (TPO) and whether CAP induced the breach.
Read the full decision at Court of Arbitration for Sport (football, via FIFA) ↗
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