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International Arbitration Forum

Al-Raed FC v. Nemanja Nikolic

Case summary

At a glance

Parties
Al-Raed Club (Saudi Arabia) v. Nemanja Nikolic (Serbia)
Case no.
CAS 2021/A/8352
Forum and rules
Court of Arbitration for Sport, appeal procedure under the CAS Code; FIFA regulations apply first, with Swiss law filling any gaps
Treaty
None. Appeal against a decision of the FIFA Dispute Resolution Chamber (Article 57(1) FIFA Statutes)
Tribunal
Mark Hovell (Sole Arbitrator)
Sector
Football; player employment contract
Outcome
Appeal partially upheld (7 November 2022). Only the award for flight tickets (USD 1,788) was deleted. The rest of the FIFA DRC decision was confirmed.
Amount
Confirmed: USD 171,038 net outstanding remuneration and USD 1,129,094.40 net compensation for breach of contract, each with 5% interest p.a. Deleted: USD 1,788 for flight tickets. The Club had asked for a total of USD 600,000. The costs paragraphs are redacted in the published award.

The dispute

Al-Raed Club, a Saudi Pro League club, signed the Serbian player Nemanja Nikolic on 15 October 2020 on a contract running to 14 October 2022. On 7–8 February 2021 the Club terminated the contract unilaterally and gave no reasons. The FIFA Dispute Resolution Chamber ordered the Club to pay outstanding salaries, compensation for breach of contract and the value of flight tickets. The Club appealed to CAS. It did not deny that it had terminated without just cause. It argued that the Player had not proved any actual damage (Article 42 of the Swiss Code of Obligations) and that the second-year advance payment and salary rise should be ignored. It also relied on the specificity of sport, because the Player's career had improved at FC Tobol, and on the Player's later contracts as mitigation. Finally, it argued that the flight tickets were not owed. The Player asked for the FIFA decision to be confirmed.

Key holdings

  1. When a club breaches the contract, the premature termination itself proves the player's damage. Under the FIFA RSTP and CAS jurisprudence, the employment contract is enough proof. Requiring more would create an unjustified burden of proof and would be contrary to Article 17 RSTP and Article 337b of the Swiss Code of Obligations. ¶¶ 87–89
  2. Compensation follows the positive interest principle. The starting point is the residual value of the contract, USD 1,166,660 net, including the second-year advance payment and salary. The level of football the Player played after the termination is irrelevant to damages under Article 17 RSTP, apart from its effect on mitigation. ¶¶ 84–91
  3. Under its de novo power, CAS may take into account contracts the player signed after the FIFA decision, here the Spartak Subotica contract. That contract was worth less than the Tobol contract that FIFA had already deducted in full. The Club did not prove that undisclosed side agreements existed. Because the Player had not appealed, the mitigated amount of USD 37,565.60 was kept, leaving compensation of USD 1,129,094.40 net with 5% interest from 23 March 2021. ¶¶ 92–98
  4. The contract clause on two round-trip tickets per season was meant to let the Player travel to and from Saudi Arabia while employed. After the termination he no longer needed to travel, and he had not shown that he paid for any tickets. The USD 1,788 for flight tickets was therefore wrongly awarded. ¶¶ 99–103
  5. The Club did not dispute the unpaid salaries of USD 171,038 net. Under pacta sunt servanda they are owed with 5% interest from the respective due dates. Item 2(c) of the FIFA decision is deleted and the rest of the decision is confirmed. ¶¶ 80–81, 104–106; operative part

Procedural history

  1. 15 October 2020The Player and the Club sign an employment contract valid until 14 October 2022.
  2. 8 February 2021The Club delivers a termination notice dated 7 February 2021 that gives no reasons.
  3. 23 March 2021The Player files a claim before the FIFA Dispute Resolution Chamber.
  4. 8 June 2021The FIFA DRC partially accepts the claim. The award's facts section gives this date; the operative part refers to a decision of 19 August 2021. The grounds were notified on 6 September 2021.
  5. 27 September 2021The Club files its Statement of Appeal at CAS. FIFA, first named as a second respondent, is excluded from the proceedings on 7 October 2021.
  6. 8 December 2021The Player files his Answer. Mark Hovell is appointed Sole Arbitrator.
  7. 1 February 2022The Sole Arbitrator decides the case on the written submissions, without a hearing.
  8. 7 November 2022Award: appeal partially upheld; only the award for flight tickets is deleted.

Tribunal, counsel and experts

Decided by
  • Mark Hovell Sole arbitrator, Court of Arbitration for Sport — 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/8352
Claimant
Al-Raed FC
Respondent
Nemanja Nikolic
Documents

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