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Edit article Compensation for a player when his club breaches contract

  • Subjects: Case law,

    Territory: FIFA - Fédération Internationale de Football Association


    Intro

    There are two common breach of contract situations that lead to the filing of a petition for compensation by the player. The club breaches contract and:
    1. the club terminates unilateral without just cause or
    2. The player terminates unilateral with just cause.

    After the unilateral termination the player normally seeks compensation. In most cases when the conflict has an international dimension because the player and club belong to different nationalities, the player files a petition with the DRC and demands compensation.

    It is interesting to know what the DRC normally awards and which circumstances lead to higher or lower compensation.

    So first let's have a look recent decissions of the DRC.

    In order to keep the summaries short and readable a few definitions are used.

    Term: Description
    Contract employment contract between the player and the club.
    Contract value sum of guaranteed payments that the player should receive, thus without bonus or other possible uncertain future income

    Case Law

    Decision Contract Value Description Decision Plus/Minus Factors
    DRC, 1114091, 6 November 2014 680.000 Player had only received signon fee of 100.000. terminated the contract after the club failed to pay salaty for 3 month's. Signed as new contract for a far lower salary with a new club. 122.000 unpaid salary plus 361.000 compensation for breach of contract remaining value of old contract 458.000 minus value of new contract 77.487 (over the same period) minus 19.513 (unknown reasons). the last deduction of 19.513 makes no sense and is not motivated
    DRC, 1013439, 4 October 2013 90.000 The contract was signed 2 May 2012. The club has an unilateral option for another season. The club doesn't take care the player receives his visa etc. He can not join the team for season preperation. In September he unilateral terminates because the club has breached contract. On 18 September 2012 the player signs for another club a two year contract. The first year has a value of 20.000 for the first season DRC awards 50.000 '..the execution of the contract actually never started .....which equally should be taken into consideration in the calculation of the amount of compensation' [1]
    DRC 23 September 2013, 09131044, Single Judge 30.000 A ten month contract with monthly payments of 2000 and two extra payments of 5.000 each due on signing and 1 November 2013. Player never received more than 670. He terminated unilateral on 13 February 2013. He did not sign for another team before 30 June 2013 DRC awards 29330. All outstanding salaries (19.330 per Febr. 2013) plus remaining value of the contract. (10.000) None
    DRC, 23 September 2013, 09132406 Single Judge 77.000 Contract start 15 june 2010 and end 15 May 2011. Monthly salary was 7.000. The player received only partial payments in the amount of 35.000. At 21 May 2011 the player files a claim for the amount of 49.000.
    No premature termination of contract
    DRC Awards 42.000 i.c. the difference between total value 77.000 and what had been received 35.000 [2] None
    DRC, 30 August2013, 08131981.pdf 171.000 The player was entitled to 9000 per month for the per Sept. 2010 until 31 May 2011 (9 months) and 90.000 for the 2011-2012 season. Furthermore to 600 per month for rent and one flight ticket per season. The club unilateral terminated the agreement on May 17 2011. 25 june 2011 the player signs with a different club for the 2011-2012 seaso. The new contract has a 15.000 value. DRC awards unpaid 600 for rent May 2011, 99.000 remaining value of the contract minus 15.000 value of new contract. Furthermore unpaid rent and costs of flight ticket occured before termination. None

    [1]:
    Comment of editor: this is a bit odd. 'because the execution of the contract had not started yet' this sounds a bit odd, the player was not entitled to sign for another club again. He was bound by the contract and his obligations to perform for the club were fully in force. It makes one wonder when a contract 'starts' in the opinion of the DRC and what are the consequences of this 'starting'.
    [2]:
    The player claimed twelve month's however the DRC decided that the contract was only 11 month's, which seems logical when a contract start on June 15 2010 and ends 15 May 2011.

    Last update by: Matthijs Lambregts on July 26, 2015 13:14

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