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TAS 2023 A 9684 Club Blooming c. Tavares & FIFA (CAS)

Why it matters

This case reinforces the principle of contractual stability in football, as enshrined in FIFA RSTP Article 17. It clarifies that a clause for salary renegotiation does not automatically invalidate a contract if no new agreement is reached, especially when the club fails to meet its existing payment obligations. The decision confirms that clubs face significant financial and sporting sanctions (transfer bans) for breaching player contracts, particularly when they are repeat offenders.

Summary

Club Blooming (Bolivia) and player Jefferson Tavares da Silva (Brazil) signed a contract from January 1, 2022, to December 31, 2023. The contract stipulated a salary for 2022 and a renegotiation for 2023. Club Blooming failed to pay Tavares's salaries for October, November, and December 2022. On January 4, 2023, Tavares demanded payment within 15 days. When the club failed to pay, Tavares rescinded the contract for just cause on January 30, 2023, citing FIFA RSTP Articles 14 and 14bis. Tavares then filed a claim with the FIFA Dispute Resolution Chamber (DRC) on March 13, 2023, seeking unpaid remuneration and compensation for breach of contract. The DRC ruled on May 4, 2023, that Club Blooming had breached its payment obligations, the contract was terminated for just cause, and ordered the club to pay USD 70,963.63 (unpaid remuneration) and USD 18,409.09 (compensation), plus 5% interest, and imposed a two-period transfer ban on the club. Club Blooming appealed to the CAS on May 30, 2023, arguing that the contract had lost its validity for 2023 because the salary renegotiation for that year had not occurred, thus a fundamental element was missing. They sought to annul the transfer ban and recalculate the debt without additional compensation. FIFA argued that Club Blooming was trying to evade disciplinary consequences for breaching contractual obligations during the protected period, maintaining that the contract was valid, the termination was for just cause, and the sanctions were justified, especially given Club Blooming's history of similar breaches. Tavares informed CAS that Club Blooming had paid 100% of the amounts ordered by FIFA and requested that the transfer ban be lifted to avoid harming the club and its players. The CAS, with a sole arbitrator, confirmed its jurisdiction and applied FIFA regulations and subsidiarily Swiss law. The CAS rejected Club Blooming's argument that the contract was invalid for 2023 due to failed salary renegotiation. It found that the contract clearly stipulated its duration until December 31, 2023, and the renegotiation clause did not specify contract termination as a consequence of non-agreement. The CAS emphasized the principle of *pacta sunt servanda* and contractual stability. The CAS affirmed that Tavares had just cause to terminate the contract due to unpaid salaries, as per FIFA RSTP Articles 14 and 14bis. Consequently, the CAS upheld both the financial compensation to the player and the two-period transfer ban on Club Blooming, citing Article 17 of the RSTP, which aims to deter unilateral breaches. Ultimately, the CAS rejected Club Blooming's appeal in its entirety, confirmed the FIFA DRC decision, and ordered Club Blooming to bear the arbitration costs and pay CHF 3,000 each to Tavares and FIFA as contributions to legal costs.

The detail

Parties: TAS 2023 A 9684 Club Blooming c. Tavares & FIFA

Outcome: The CAS rejected Club Blooming's appeal, confirmed the FIFA Dispute Resolution Chamber's decision, and ordered Club Blooming to pay arbitration costs and contributions to Jefferson Tavares da Silva and FIFA.

Quantum: USD 89,372.72 plus 5% interest, and CHF 6,000 in legal costs.

Applicable law: FIFA Regulations on the Status and Transfer of Players (RSTP) Articles 14, 14bis, 17; CAS Code of Sports Arbitration Articles R37, R47, R51, R54, R55, R57, R58, R64.4, R64.5; FIFA Circular No. 1171; subsidiarily Swiss law.

Issues in play: The core legal collision was between Club Blooming's argument that the contract lost validity due to a failed salary renegotiation for 2023 (an essential element missing), and the player's/FIFA's position that the contract remained valid and was terminated for just cause due to the club's failure to pay salaries, as per FIFA RSTP. The CAS had to interpret the contractual clause regarding salary renegotiation and its impact on contract validity versus the clear breach of payment obligations.

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

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