Skip to main content
International Arbitration Forum

Al Ahli Saudi Club v. Josef De Souza Dias

Case summary

At a glance

Parties
Al Ahli Saudi FC (Saudi Arabia) v. Josef De Souza Dias (Brazilian professional footballer)
Case no.
CAS 2022/A/8917
Forum and rules
Court of Arbitration for Sport, appeal arbitration under the CAS Code (Article R47)
Treaty
None. Contract dispute: Clause 7 of the Second Settlement Agreement (FIFA bodies, appeal to CAS; Swiss law and FIFA Regulations)
Tribunal
Prof. Luigi Fumagalli (Sole Arbitrator)
Sector
Professional football; player employment
Outcome
Appeal dismissed and the FIFA DRC decision of 24 March 2022 confirmed (award of 18 April 2023).
Amount
The FIFA DRC decision, now confirmed, ordered the Club to pay EUR 4,700,000 plus 5% interest p.a. from 14 September 2020, and imposed a fine of USD 105,000. The costs rulings are redacted in the published award.

The dispute

The Player terminated his employment contract with Al Ahli Saudi FC on 30 August 2020. On 11 March 2021 the FIFA Dispute Resolution Chamber (DRC) awarded him EUR 250,000 in outstanding pay and EUR 4,450,000 in compensation. While the Club's appeal to CAS was pending, the parties signed a Second Settlement Agreement on 22 June 2021. Under it the Club was to pay EUR 3,850,000 by 15 July 2021. If it did not pay, the settlement would become null and void and the Player could enforce the original FIFA decision. The Club did not pay. On 24 March 2022 the DRC ordered it to pay EUR 4,700,000 plus interest and fined it USD 105,000 as a repeat offender under Article 12bis RSTP. On appeal, the Club argued that the COVID-19 pandemic excused its non-payment: it relied on its financial difficulties, on force majeure and on hardship (rebus sic stantibus, Articles 6.2.2–6.2.3 of the UNIDROIT Principles), and asked CAS to order a renegotiation. The Player argued that the request for renegotiation was inadmissible because it went beyond the relief sought before the DRC, and that in any case it had no merit.

Key holdings

  1. CAS has jurisdiction under Articles 56–57 of the FIFA Statutes and Clause 7 of the Second Settlement Agreement. FIFA regulations, chiefly the RSTP, apply first, and Swiss law applies subsidiarily. ¶¶ 40–51
  2. The object of the dispute had not changed. The Sole Arbitrator noted that CAS review under Article R57 is not confined to the exact relief sought below. He left the admissibility objection undecided because the appeal failed on the merits anyway. ¶¶ 55–56, 62
  3. Financial difficulties do not excuse non-payment of a debt and do not justify changing agreed financial terms. Lost revenues caused by COVID-19 therefore could not justify the Club's failure to pay under the Second Settlement Agreement. ¶ 60(i)
  4. No force majeure. The Club undertook the payment obligations in June 2021, more than a year after COVID-19 was declared a pandemic in March 2020. The pandemic and its effects already existed or were easily foreseeable when the agreement was signed. ¶ 60(ii)
  5. No hardship under Article 6.2.2 of the UNIDROIT Principles. The events did not occur or become known to the Club after the contract was concluded, and they could reasonably have been taken into account when it was concluded. ¶ 60(iii)
  6. The Club's breach triggered Clause 3 of the settlement, so the Club owes EUR 4,700,000 plus interest under the First DRC Decision. The appeal is dismissed and the DRC decision is confirmed. ¶¶ 61–62; operative part

Procedural history

  1. 23 August 2018The Club and the Player sign an employment contract running to 30 June 2021, worth EUR 12,000,000 in total.
  2. 30 August 2020The Player terminates the employment contract for the Club's violations.
  3. 11 March 2021First DRC Decision: the Club must pay EUR 250,000 in outstanding remuneration and EUR 4,450,000 in compensation, with interest.
  4. 22 June 2021Second Settlement Agreement: the Club agrees to pay EUR 3,850,000 by 15 July 2021. The CAS appeal against the First DRC Decision is terminated on 31 August 2021.
  5. 24 March 2022The DRC orders the Club to pay EUR 4,700,000 plus interest and fines it USD 105,000.
  6. 2 June 2022The Club files its Statement of Appeal with CAS.
  7. 15 August 2022Prof. Luigi Fumagalli is appointed Sole Arbitrator. The Club later withdraws its request for a hearing, and the case is decided on the written submissions.
  8. 18 April 2023Award: appeal dismissed and DRC decision confirmed.

Tribunal, counsel and experts

Decided by
  • Luigi Fumagalli Sole arbitrator, Court of Arbitration for Sport — appointed by the institution (appointed by the Deputy President of the CAS Appeals Division under Article R54)

Run a conflict check on these names →

Keywords

Summary generated with AI from the published documents — refer to the award for the authoritative text.

Case ID
CAS 2022/A/8917
Claimant
Al Ahli Saudi Club
Respondent
Josef De Souza Dias
Documents

Procedure: Appeal
Sport: Football
Matter: Contractual litigations (except transfer)
Outcome: Dismissed
Panel: Luigi Fumagalli
Source: Court of Arbitration for Sport case database.