TAS 2022 A 9002 Club Olimpia c. Agustin Perego & FIFA
CAS · Football (FIFA / CAS) · Switzerland · 26 Mar 2024
Why it matters
This case clarifies the standard for just cause termination under FIFA RSTP Article 14bis when a club fails to pay salaries and engages in abusive conduct (excluding the player from training). It confirms that a player's brief delay in terminating (five days) does not waive the right to terminate, and that the club's conduct in isolating the player constitutes abusive behavior justifying termination. The case also addresses the interaction between FIFA compensation rules and national tax law, holding that the awarded amounts are gross and subject to Paraguayan withholding taxes.
Summary
Club Olimpia, a Paraguayan football club, signed a contract with Uruguayan player Agustin Ale Perego from June 2021 to June 2022. The club failed to pay salaries from September to December 2021. After the player demanded payment on 22 December 2021, the club authorized his absence from training on 1 January 2022, claiming negotiations for mutual termination. The player rejected this and insisted on training. On 5 January 2022, the player was denied access to the main squad and told to train individually. He trained alone on 6 January and then sent a letter complaining of abusive conduct. On 7 January, he was briefly reinstated, but on 11 January, the club again ordered him to train separately. That same day, the player terminated the contract for just cause. He later signed with Academica de Coimbra for EUR 20,000. The FIFA DRC found the club liable for unpaid salaries and compensation, imposing a two-window transfer ban. Club Olimpia appealed to CAS, arguing that the player's delay in terminating (five days after the payment deadline) and his continued performance waived his right to terminate, and that the separation was for sporting reasons. The CAS Sole Arbitrator dismissed the appeal, holding that the player had just cause to terminate due to unpaid salaries (Article 14bis RSTP) and the club's abusive conduct in excluding him from the squad to force a termination. The five-day delay was not unreasonable and showed good faith. The compensation was calculated under Article 17 RSTP: the residual value of the contract (USD 118,000) minus the new contract value (EUR 20,000, converted to USD 21,600), plus an additional amount under Article 17.1.ii for termination due to overdue payables (USD 3,600). The arbitrator also ruled that the awarded amounts are gross, and the club must withhold Paraguayan taxes (IVA and IR) as required by law. The transfer ban was confirmed.
The detail
Parties: TAS 2022 A 9002 Club Olimpia c. Agustin Perego & FIFA
Outcome: The appeal by Club Olimpia is dismissed. The FIFA DRC decision is confirmed: Club Olimpia must pay the player USD 52,000 plus IVA in unpaid salaries, USD 2,400 plus IVA in housing contributions, USD 118,000 plus IVA as compensation for breach of contract, and USD 3,600 plus IVA as additional compensation, all with 5% interest. A two-window transfer ban is imposed.
Quantum: USD 176,000 plus IVA and interest
Applicable law: FIFA Regulations on the Status and Transfer of Players (RSTP), particularly Articles 14bis and 17; Swiss law as subsidiary; Paraguayan tax law (IVA and IR).
Issues in play: The collision was between the player's right to terminate for just cause due to unpaid salaries and abusive conduct (Article 14bis RSTP) and the club's argument that the player's delay in terminating and continued performance waived that right. Also, the calculation of compensation under Article 17 RSTP and the application of Paraguayan tax law to the award.
Read the full decision at Court of Arbitration for Sport (football, via FIFA) ↗
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