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International Arbitration Forum

Da Nang FC v. Banik Prievidza FC, Fédération Internationale de Football Association (FIFA)

Case summary

At a glance

Parties
Da Nang FC (Vietnam) v. Banik Prievidza FC (Slovakia) and FIFA
Case no.
CAS 2021/A/7630
Forum and rules
Court of Arbitration for Sport, appeals procedure under the CAS Code (2020 edition)
Treaty
FIFA Statutes (2020 edition), Article 58(1); FIFA RSTP (June 2018 edition); FIFA Procedural Rules (June 2020 edition)
Tribunal
Edward Canty (Sole Arbitrator)
Sector
Football; training compensation
Outcome
The appeal was admissible but was dismissed. FIFA's decision of 9 December 2020 was confirmed (award of 2 May 2023).
Amount
Da Nang FC must pay USD 60,904.11 in training compensation, plus 5% interest per year from the due date. In the alternative, Da Nang FC had asked for the amount to be cut to at most USD 12,000. The published award omits the costs rulings (operative ¶¶ 4–5).

The dispute

The player was trained by the Slovakian club Banik Prievidza FC. In February 2019 he signed his first professional contract with the Vietnamese club Da Nang FC. Banik claimed training compensation before FIFA on 2 October 2020. On 26 October 2020 the FIFA administration issued a fast-track proposal under Article 13 of the FIFA Procedural Rules for USD 60,904.11 plus interest. The proposal was based on Da Nang's listing as a Category 3 club in the Transfer Matching System (TMS). Da Nang did not respond, and on 9 December 2020 FIFA confirmed by letter that the proposal had become binding. On appeal, Da Nang argued that it was in fact a Category 4 club, as all Vietnamese clubs were, so that no training compensation was owed. It also argued that COVID-19 had prevented it from accessing TMS, that the fast-track procedure was unsuitable and breached its right to be heard, and, in the alternative, that the amount should be reduced for proportionality. FIFA and Banik argued that the appeal was inadmissible because the 9 December letter was merely informative, and that Da Nang was estopped (venire contra factum proprium).

Key holdings

  1. Under the principle of tempus regit actum, the applicable rules are those in force at the time of the relevant acts: the FIFA RSTP (June 2018 edition), and the FIFA Statutes (2020 edition) and FIFA Procedural Rules (June 2020 edition). The 2021 Procedural Rules issued while the dispute was pending do not apply. ¶¶ 62–64
  2. The appeal is admissible. The 9 December 2020 letter is an appealable decision: it alone confirmed that the proposal was binding, ordered payment with interest within 30 days, and warned of referral to the FIFA Disciplinary Committee. The Proposal Letter itself was not a decision. The form of a letter is irrelevant. ¶¶ 74–82
  3. FIFA was right to use the Article 13 fast-track procedure. Da Nang could have rejected the proposal on the ground that its categorisation was wrong, so it suffered no prejudice and its right to be heard was not infringed. ¶¶ 96–97
  4. COVID-19 is no excuse. Clubs must check TMS at least every three days (Article 2 of Annexe 6 RSTP), and TMS can be reached from any internet-connected device. Da Nang had in fact seen the proposal and ignored it as an 'administrative mistake'. Its failure to respond counts as acceptance of the proposal. ¶¶ 100–108
  5. Clubs are responsible for keeping their TMS categorisation correct, and Da Nang knew it was listed as Category 3. By its silence it created legitimate expectations that it had accepted the proposal, so it is estopped (venire contra factum proprium). The Sole Arbitrator therefore cannot recategorise the club or reduce the amount under Article 5(4) of Annex 4 RSTP. USD 60,904.11 plus 5% interest is confirmed as due. ¶¶ 110–122

Procedural history

  1. 22 February 2019The player signs his first professional contract with Da Nang FC.
  2. 2 October 2020Banik Prievidza FC files a training compensation claim with FIFA.
  3. 26 October 2020FIFA issues a proposal for USD 60,904.11 plus 5% interest, open for acceptance or rejection until 10 November 2020. Banik accepts it on 6 November 2020.
  4. 9 December 2020FIFA confirms that the proposal has become binding (the Appealed Decision).
  5. 28 December 2020Da Nang asks FIFA to annul the decision. On 12 January 2021 FIFA replies that it cannot be annulled.
  6. 30 December 2020Da Nang files its appeal with CAS.
  7. 16 February 2021Sole Arbitrator Edward Canty is appointed. On 13 April 2021 Banik's Answer is held inadmissible because it was filed late. On 22 April 2021 the Sole Arbitrator decides not to hold a hearing.
  8. 2 May 2023Award: the appeal is admissible but dismissed, and FIFA's decision is confirmed.

Tribunal, counsel and experts

Decided by
  • Edward Canty Sole arbitrator, CAS — appointed by the institution

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Keywords

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

Case ID
CAS 2021/A/7630
Claimant
Da Nang FC
Respondent
Banik Prievidza FC, Fédération Internationale de Football Association (FIFA)
Documents

Procedure: Appeal
Sport: Football
Matter: Transfer
Outcome: Dismissed
Panel: Edward Canty
Source: Court of Arbitration for Sport case database.