Reference: FIFA Dispute Resolution Chamber, Case No. FPSD-14672
Decision Date: 27 February 2025
F – Facts
- On 15 September 2023, Mario Balotelli signed a fixed-term employment contract with Turkish club Adana Demirspor A.S., valid until 30 June 2024, with a net annual salary of EUR 3,150,000, payable in ten equal monthly instalments.
- The contract expressly required any modifications or waivers to be in writing.
- Following non-payment of the September and October 2023 salaries, the parties executed an Addendum on 23 December 2023, where the Club acknowledged default and agreed to pay the outstanding EUR 945,000 (covering September–November salaries) by 5 January 2024. The Club’s President guaranteed this payment via enclosed bank checks.
- Further bank checks totaling EUR 1,755,000 were issued in January 2024, which the Player considered additional guarantees, not a rescheduling of payment obligations.
- The Club claimed these checks constituted a new payment arrangement and discharged its obligations.
- The Player’s attempts to cash three checks in mid-2024 were unsuccessful due to insufficient funds, prompting a claim to FIFA filed on 19 May 2024 for the full outstanding salary.
- The Club contested the claim, asserting the checks had legal force and requesting the Player return them.
I – Issues
- Was the FIFA Dispute Resolution Chamber competent to adjudicate the dispute?
- Did the bank checks constitute payment or merely serve as guarantees?
- Did their issuance alter the contractual payment terms?
- Was the Club in breach of its payment obligations?
- Was the Player entitled to full salary and interest?
- Should the Player return the checks?
- Should disciplinary sanctions be imposed on the Club under FIFA regulations?
- Should a transfer ban be imposed for non-compliance?
R – Rules
- FIFA Regulations on the Status and Transfer of Players (January 2025 edition)
- FIFA Procedural Rules (Art. 13(5): Burden of Proof)
- Art. 12bis: Sanctions for overdue payables
- Art. 24: Sanctions for non-compliance
- General contract law principles, including pacta sunt servanda
A – Analysis
- The Chamber confirmed its competence based on the international nature of the dispute.
- The Club failed to meet the burden of proving actual payment. Issuing checks alone was insufficient without banking documentation showing successful cashing.
- The Player submitted proof that three checks were dishonored due to insufficient funds.
- The Chamber held that the Addendum treated the checks as guarantees, not revised payment terms. No formal contract modification occurred as required by the agreement.
- The Club’s claim that the checks discharged the debt was rejected.
- The Club was found in clear default of its payment obligations.
- The full amount claimed (EUR 3,150,000 net) was awarded to the Player, with 5% annual interest from each instalment’s due date.
- To avoid unjust enrichment, the Player was ordered to return the checks.
- Given the Club’s history of infractions under Art. 12bis, a fine of USD 225,000 was imposed, and the matter was referred to the FIFA Disciplinary Committee.
- A further transfer ban was not imposed immediately due to an existing ban under a separate case (FPSD-14997), but future non-compliance would trigger enforcement through the Disciplinary Committee.
C – Conclusion
- Claim upheld: Adana Demirspor A.S. was ordered to pay EUR 3,150,000 net in outstanding salaries plus 5% interest per annum from the respective due dates.
- Sanctions: A USD 225,000 fine was imposed under Art. 12bis.
- Bank checks: The Player must return five specified checks within 30 days.
- Enforcement: Failure to pay within 30 days would trigger referral to the FIFA Disciplinary Committee under Art. 24.
Significance for Sports Governance
This decision is a landmark in enforcing financial discipline and accountability in club-player relations, with implications including:
- Contractual Integrity: Reinforces the binding nature of employment terms and the requirement for formal modification.
- Payment Verification: Clarifies that checks are not proof of payment; actual transfer of funds must be demonstrated.
- Player Protections: Affirms players’ rights to timely remuneration and the effectiveness of FIFA’s dispute mechanisms.
- Deterrence of Repeat Offenders: Illustrates FIFA’s escalating sanctions against clubs with a pattern of non-compliance.
- Enforcement Flexibility: Demonstrates how FIFA balances enforcement with practicality when concurrent sanctions exist.
- Legal Precedent: Establishes clear guidance on the treatment of guarantees and the burden of proof in payment disputes.
Mokua Manyara
info@mnwlaw.co.ke
why always me?
