Pyramids FC v. CD Especializado de Alto Rendimiento Universidad Católica del Ecuador, Fédération Internationale de Football Association (FIFA)

At a glance

Parties

Pyramids Football Club (Egypt) v. Club Deportivo Especializado de Alto Rendimiento Universidad Católica del Ecuador (Ecuador) and FIFA

Case no.

CAS 2022/A/8807

Forum and rules

Court of Arbitration for Sport, appeal arbitration under the CAS Code; FIFA RSTP (August 2021 edition) applies, with Swiss law subsidiarily

Treaty

None. Contract claim under a transfer agreement of 20 December 2018

Tribunal

Rui Botica Santos (President), Michele A.R. Bernasconi, Massimo Coccia

Sector

Football transfer; solidarity contribution

Outcome

Appeal upheld (21 July 2023). The reimbursement claim was not time-barred, and Universidad Católica must reimburse the full solidarity contribution that Pyramids paid to Juventud Minera.

Amount

FIFA PSC had awarded USD 35,650. CAS raised the award to USD 89,125 plus 5% p.a. from 2 September 2021. Because USD 36,382.53 had already been paid, USD 53,475 plus interest remains outstanding.

The dispute

On 20 December 2018, Universidad Católica transferred the Ecuadorian player John Jairo Cifuentes Vergara to the Egyptian club Pyramids FC for USD 5,000,000. Under the transfer agreement, the fee was "inclusive of solidarity contribution and the training compensation", so Pyramids did not withhold the 5% (USD 250,000). The training club Juventud Minera later claimed its share before the FIFA DRC, which ordered Pyramids, as the new club, to pay USD 89,125. Pyramids paid that amount and claimed reimbursement from Universidad Católica. The FIFA Players' Status Chamber awarded only USD 35,650, the share linked to the second instalment, and held that the share linked to the first instalment was time-barred under Article 23(3) of the RSTP. Pyramids appealed. The respondents argued that the limitation period ran from the regulatory payment deadlines in Annexe 5 RSTP. Universidad Católica also argued that Pyramids had negligently failed to defend itself against Juventud Minera's claim.

Key holdings

1. The appeal is admissible. Proof of payment of the Court Office fee was filed on time on 19 April 2022: the 3-day deadline ended on a Sunday followed by a public holiday in Zurich, so under Article R32 of the CAS Code it ran to the next business day. ¶¶ 39, 141–143
2. The dispute is a contractual (horizontal) claim for reimbursement between the two clubs, not a regulatory solidarity claim. The 30-day payment deadline in Article 2(1) of Annexe 5 RSTP therefore does not determine when the dispute arose. ¶¶ 154–159
3. By accepting the full fee "inclusive of solidarity contribution", Universidad Católica took on the contractual duty either to pay the training clubs directly or to reimburse Pyramids. Its attempts to settle with Juventud Minera confirm this. ¶¶ 161–163
4. Clubs may agree who bears the final burden of solidarity contribution. Such agreements bind only the two clubs and leave the buying club's regulatory liability to the training clubs untouched. A buying club that is ordered to pay may recover the amount from the selling club if the parties agreed to this. ¶¶ 164–165
5. The dispute arose at the earliest on 10 February 2021, when the clubs began discussing Juventud Minera's claim. The claim filed with the FIFA PSC on 2 November 2021 was therefore not time-barred under Article 23(3) RSTP for either instalment. ¶¶ 167–172
6. Universidad Católica breached the transfer agreement and owes USD 89,125. After crediting its payment of USD 36,382.53 made on 30 March 2022, it must pay the remaining USD 53,475 plus 5% p.a. from 2 September 2021, the date Pyramids paid Juventud Minera. All other prayers for relief are dismissed. ¶¶ 174–176, 185; operative part

Procedural history

1. 20 December 2018Transfer agreement concluded for a fee of USD 5,000,000, inclusive of solidarity contribution.
2. 22 June 2021In the TMS 6333 Case, a Single Judge of the FIFA DRC orders Pyramids to pay Juventud Minera USD 89,125 in solidarity contribution.
3. 1 September 2021Pyramids pays Juventud Minera USD 89,125. The award also gives the payment date as 2 September 2021.
4. 2 November 2021Pyramids files its reimbursement claim with the FIFA PSC.
5. 8 February 2022The FIFA PSC partially accepts the claim and awards USD 35,650. Its grounds are notified on 21 March 2022.
6. 11 April 2022Pyramids files its Statement of Appeal with CAS.
7. 15 August 2022The three-member Panel is constituted, after the Deputy Division President revised her earlier decision to appoint a sole arbitrator.
8. 20 October 2022Hearing held by videoconference.
9. 21 July 2023Award: the appeal is upheld.

Tribunal, counsel and experts

Decided by

• Rui Botica Santos President, CAS Panel — appointed by the institution
• Michele A.R. Bernasconi Co-arbitrator, CAS Panel — appointed by the claimant
• Massimo Coccia Co-arbitrator, CAS Panel — appointed by the respondent
• Edward Canty Sole arbitrator, CAS — appointed by the institution (nominated as sole arbitrator on 9 May 2022; replaced when the case was referred to a three-member Panel on 25 May 2022)

For the claimant

Zani Dzaferi

For the respondent

FIFA · Andrés Holguín Martínez

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Keywords

• solidarity contribution
• FIFA RSTP Annexe 5
• reimbursement
• statute of limitations
• Article 23(3) RSTP
• time bar
• transfer agreement
• inter partes agreement
• buying club liability
• Juventud Minera
• FIFA Players' Status Chamber
• pacta sunt servanda
• Article R32 CAS Code
• number of arbitrators
• Article R50 CAS Code
• football transfer
• Pyramids

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