Skip to main content
International Arbitration Forum

Hyderabad Football Club v. Nestor Jesus Gordillo Benitez

Case summary

At a glance

Parties
Hyderabad FC (India) v. Nestor Jesus Gordillo Benitez (Spanish professional footballer)
Case no.
CAS 2021/A/7820
Forum and rules
Court of Arbitration for Sport, appeals procedure under the CAS Code; appeal against a decision of the FIFA Dispute Resolution Chamber
Treaty
Employment contract of 20 August 2019 (governed by Indian law); FIFA Statutes Article 57; FIFA RSTP (January 2020 edition)
Tribunal
Francesco Macri (Sole Arbitrator)
Sector
Professional football; player employment
Outcome
Appeal partially upheld (21 September 2022). The termination without just cause was confirmed, and the compensation was reduced from USD 115,100 to USD 91,544.
Amount
FIFA DRC award: USD 115,100 plus 5% interest p.a. from 7 July 2020. CAS award: USD 91,544 net plus 5% interest p.a. from 7 July 2020.

The dispute

Hyderabad FC, an Indian club, signed the Spanish player Nestor Jesus Gordillo Benitez under a contract that ran from 1 September 2019 to 30 April 2021. His pay was USD 110,000 for 2019-20 and USD 145,000 for 2020-21. On 20 May 2020 the Club relied on the force majeure clause (Schedule 2, Article 5.5) and the COVID-19 pandemic to terminate the contract with retroactive effect. It offered the player his February–March 2020 salaries and 30% of his 2020-21 salary. The FIFA DRC held that the Club had terminated without just cause and awarded the player USD 115,100. On appeal the Club argued three points: the pandemic justified termination; the player had tacitly accepted the salary reduction; and a later settlement had reinstated the contract and withdrawn the FIFA claim, after which the player himself left without just cause in January 2021. In the alternative, it sought a reduction of the compensation.

Key holdings

  1. COVID-19 is not force majeure in itself. FIFA treats the question case by case under the national law governing the contract. Under the Indian Ministry of Finance Office Memorandum of 19 February 2020, force majeure only suspends performance and does not end the contract. ¶¶ 71–75
  2. No just cause for termination. The Club carried the burden of proof and did not prove that the pandemic affected its finances. It terminated soon after one rejected offer that had vague payment terms. The 2020-21 Indian Super League season was played in full, so less drastic measures were available. ¶¶ 76–79
  3. Silence is not acceptance. The player rejected the 2019-20 part of the Club's offer and said nothing on the 2020-21 reduction. Under Swiss law and the Indian Contract Act, acceptance must be absolute and expressed, so the player did not accept the reduction. ¶¶ 81–84
  4. No settlement and no reinstatement. The player's return to the first team was an essential condition of any reinstatement, and it did not happen. The player could therefore keep his original FIFA claim, and only one FIFA file (20-00959) existed. ¶¶ 58–61, 90–92
  5. Compensation reduced to USD 91,544 net plus 5% interest from 7 July 2020. The DRC's USD 115,100 was reduced by a payment of USD 14,487 made on 3 December that the DRC had not taken into account. It was reduced again by the salary the player earned under his new contract with Kalisz for the overlapping period, EUR 8,625 (about USD 9,069). The player only asked for the DRC decision to be confirmed, so no Additional Compensation under Article 17.1 RSTP was considered. ¶¶ 93–96, 99
  6. Tax certificates. The Club filed a withholding tax receipt for 2020-21. If the tax authorities do not accept it, the Club must still provide tax certificates for all amounts paid to the player. ¶ 97

Procedural history

  1. 20 August 2019Employment contract concluded.
  2. 20 May 2020The Club sends a Termination Notice invoking force majeure due to COVID-19.
  3. 7 July 2020The player files a claim before the FIFA DRC.
  4. 30 September 2020The Club withdraws the Termination Notice after an exchange with the player's agent. The dispute over whether a settlement was reached continues.
  5. 26 February 2021FIFA DRC decision: termination without just cause; USD 115,100 plus interest awarded to the player.
  6. 26 March 2021The Club files its Statement of Appeal with CAS.
  7. 14 May 2021Sole Arbitrator appointed.
  8. 10 February 2022Hearing by video conference.
  9. 21 September 2022Award: appeal partially upheld; compensation reduced to USD 91,544.

Tribunal, counsel and experts

Decided by
For the claimant
Hemant Phalpher · Jaya Phalpher
For the respondent
Alfonso Leon Lleo · Pedro Guilherme da Mota Dutra · Miguel Recio de Mu · Xenia Campàs Gené

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 2021/A/7820
Claimant
Hyderabad Football Club
Respondent
Nestor Jesus Gordillo Benitez
Documents

Procedure: Appeal
Sport: Football
Matter: Contractual litigations (except transfer)
Outcome: Partially Upheld
Panel: Francesco Macri
Source: Court of Arbitration for Sport case database.