North Carolina FC v. 1. FC Nürnberg

At a glance

Parties

North Carolina FC (USA) v. 1. FC Nürnberg (Germany)

Case no.

CAS 2023/A/9366

Forum and rules

Court of Arbitration for Sport, appeal procedure under the Code of Sports-related Arbitration; appeal against a FIFA Dispute Resolution Chamber decision of 18 November 2022

Treaty

FIFA Regulations on the Status and Transfer of Players (Annexe 4, training compensation)

Tribunal

Marco Balmelli (Sole Arbitrator)

Sector

Football; training compensation

Outcome

Appeal partially upheld (11 September 2023). The FIFA DRC decision was set aside and the training compensation owed was raised.

Amount

Claimed: EUR 143,150.68 (primary claim), with alternatives of EUR 131,452.05 and EUR 121,452.05. FIFA DRC had awarded EUR 13,972.60. CAS calculated EUR 131,452.05, less EUR 13,972.60 already paid, and awarded EUR 117,479.45 plus 5% interest p.a. from 2 October 2020.

The dispute

A US-born player trained as an amateur with several US teams: Capital Area Soccer League, Capital Area Railhawks Academy, North Carolina FC Youth Academy and North Carolina FC. He then signed his first professional contract with 1. FC Nürnberg, with whom he was registered as a professional on 1 September 2020. North Carolina FC claimed training compensation before the FIFA DRC for the whole training period, arguing that all these teams were the same club or its predecessors. The FIFA DRC found this unproven and awarded compensation only for the 85 days the player was registered with North Carolina FC itself. Before CAS, Nürnberg argued that the claim was time-barred and that the new evidence filed on appeal should be excluded. It also argued that the training teams were separate clubs, and that the amount it had already paid should be deducted.

Key holdings

1. Under Article R57(3) of the CAS Code, the new evidence was admitted (Exhibits 13, 15, 16 and 17, which were available earlier, and the USSF Letter of Confirmation, Exhibit 19, issued after the appealed decision). Given the de novo power of review, the discretion to exclude evidence is used with caution, and the appellant had not behaved abusively. ¶¶ 42–44
2. The claim was not time-barred. Under Article 25(5) of the FIFA RSTP, read with Article 3(1) and (2) of Annexe 4, the two-year limit starts on the 31st day after the player's registration with the new club, here 2 October 2020. The claim lodged on 28 September 2022 was therefore in time. ¶¶ 46–51
3. North Carolina FC Youth Academy and Capital Area Railhawks Academy are part of the appellant or its predecessor. The USSF Letter of Confirmation is credible, is consistent with the player passport, and comes from a valid authority on the names under which the club competed. ¶¶ 60–67
4. The appellant did not prove that Capital Area Soccer League was its predecessor. The Notary Public Certificate names "North Carolina FC Youth", which does not match, and the USSF letter does not list that name. The email threads concerned a merger of three programmes and showed no link to the appellant. No compensation is due for that period. ¶¶ 71–77
5. Training compensation for 1,408 days, using UEFA Category II costs under FIFA Circular No. 1726, came to EUR 131,452.05. The EUR 13,972.60 already paid on 15 December 2022 was deducted, leaving EUR 117,479.45 plus 5% interest p.a. from 2 October 2020. ¶¶ 79–87; operative part

Procedural history

1. 28 September 2022North Carolina FC lodged its claim for training compensation with the FIFA DRC, seeking EUR 143,150.69.
2. 18 November 2022The FIFA DRC partially accepted the claim and awarded EUR 13,972.60 plus interest. Its grounds were notified on 16 December 2022.
3. 15 December 20221. FC Nürnberg paid EUR 15,378.79 to North Carolina FC, the amount awarded by the FIFA DRC with interest.
4. 6 January 2023Statement of Appeal filed with CAS.
5. 10 February 2023Appeal Brief filed.
6. 11 May 2023The Sole Arbitrator refused a second round of written submissions. The case was decided on the written submissions, without a hearing.
7. 11 September 2023Award: appeal partially upheld and EUR 117,479.45 plus interest awarded.

Tribunal, counsel and experts

Decided by

• Marco Balmelli Sole arbitrator, Court of Arbitration for Sport — appointed by the institution

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Keywords

• training compensation
• FIFA RSTP Annexe 4
• Article 25(5) FIFA RSTP
• time bar
• event giving rise to the dispute
• Article R57(3) CAS Code
• new evidence
• de novo review
• sporting succession
• club predecessor
• player passport
• USSF
• FIFA Dispute Resolution Chamber
• UEFA Category II
• burden of proof
• football

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