Pyramids FC v. Clube Atlético Paranaense, Fédération Internationale de Football Association (FIFA)

At a glance

Parties

Pyramids FC (Egypt) v. Club Athletico Paranaense (Brazil) and FIFA

Case no.

CAS 2022/A/8682

Forum and rules

Court of Arbitration for Sport, appeal under the CAS Code (Articles R47 and R48) and Article 57(1) of the FIFA Statutes

Instrument

FIFA Regulations on the Status and Transfer of Players (June 2018 edition for substance; August 2021 edition for procedure); Transfer Agreement of 28 June 2018

Tribunal

Sofoklis Pilavios (Sole Arbitrator)

Sector

Football; solidarity contribution

Outcome

Appeal dismissed (2 May 2023). The FIFA Players' Status Chamber decision of 6 December 2021, which held the claim inadmissible as time-barred, was confirmed.

Amount

Claimed before FIFA: USD 125,000. Claimed on appeal: USD 57,801 plus 5% interest, and USD 18,000 in FIFA procedural costs and advance of costs. Awarded: nothing.

The dispute

On 28 June 2018, Athletico Paranaense agreed to transfer a Brazilian player to the Egyptian club Al-Assiouty Sport Club, later renamed Pyramids FC. The fee was USD 2,500,000, stated to be "inclusive of solidarity contribution and the training compensation in accordance with FIFA RSTP". The new club paid the full fee without retaining the 5% share for solidarity contribution. FIFA later ordered it to pay the training club Botafogo USD 54,500 plus interest, and Pyramids FC paid Botafogo USD 57,801 on 30 March 2020. Pyramids FC then sought reimbursement from Paranaense. It argued that Paranaense had breached the Transfer Agreement and been unjustly enriched, and that the two-year limitation period ran from the date it paid Botafogo. Paranaense challenged Pyramids FC's standing and denied any duty to reimburse; Paranaense and FIFA both argued that the claim was time-barred.

Key holdings

1. Standing. Al-Assiouty changed its name to Pyramids FC on 14 July 2018, and Pyramids FC had assumed all financial obligations under the Transfer Agreement. It could therefore exercise the new club's rights under the agreement. The fact that FIFA TMS showed the player registered with Al-Assiouty until October 2019 was not conclusive. ¶¶ 55–57
2. Under Annexe 5 of the FIFA RSTP, the new club must pay solidarity contribution to the training clubs within 30 days of the player's registration, whatever the transfer agreement says. The parties may still agree between themselves which club finally bears the cost, provided the training clubs' rights are not prejudiced. ¶¶ 61–64
3. The clause making the fee "inclusive of solidarity contribution" made USD 2,500,000 a gross amount, with 5% meant to cover solidarity contribution. Pyramids FC was therefore in principle entitled to claim back the USD 57,801 it paid to Botafogo. ¶¶ 65–66
4. The event that starts the two-year limitation period under Article 23(3) of the FIFA RSTP must be an objective moment that the parties can trace. The date on which Pyramids FC chose to pay Botafogo is not such a moment. ¶¶ 67–69
5. Earlier CAS case law treated FIFA's payment order as the decisive moment. Here, however, the agreement had no clear arrangement on solidarity payments, so the period ran from the due date for those payments (29 August 2018), that is, from 30 August 2018. The claim filed on 2 November 2021 was time-barred, and the FIFA decision was confirmed. ¶¶ 70–74

Procedural history

1. 28 June 2018Transfer Agreement concluded between Paranaense and Al-Assiouty. The player registers with the new club on 30 July 2018.
2. 28 October 2019FIFA declares its proposal final and orders payment of USD 54,500 plus interest to Botafogo. Pyramids FC pays USD 57,801 on 30 March 2020.
3. 2 November 2021Pyramids FC files a claim against Paranaense with the FIFA Players' Status Chamber.
4. 6 December 2021The FIFA Players' Status Chamber holds the claim inadmissible as time-barred. Its grounds are notified on 2 February 2022.
5. 23 February 2022Pyramids FC files its Statement of Appeal with CAS.
6. 29 April 2022Panel constituted with a Sole Arbitrator. The parties later agree that the case will be decided on the written submissions, without a hearing.
7. 2 May 2023Award: appeal dismissed and the FIFA decision confirmed.

Tribunal, counsel and experts

Decided by

• Sofoklis Pilavios Sole arbitrator, Court of Arbitration for Sport — appointed by the institution

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Keywords

• solidarity contribution
• FIFA RSTP
• Annexe 5
• Article 23(3) RSTP
• limitation period
• time-barred
• reimbursement
• gross transfer fee
• inclusive of solidarity contribution
• standing to sue
• club name change
• Al-Assiouty
• Botafogo
• football transfer
• FIFA Players' Status Chamber
• CAS appeal

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