4544 Al Ain FC V

Tribunal Arbitral du Sport Court of Arbitration for Sport Arbitration CAS 2016/A/4544 Al Ain FC v. Sunderland AFC, award of 30 January 2017 Panel: Mr Ivaylo Dermendjiev (Bulgaria), Sole Arbitrator Football Entitlement of a club to receive payment of a contingent fee pursuant to a transfer agreement Interpretation of a contractual clause of a transfer agreement The interpretation of a clause of an agreement must be carried out according to the general rules of contract interpretation. In this respect, it is necessary to make reference to Article 18(1) of the Swiss Code of Obligations. The real and common intention of the parties must be identified and interpreted based on the principle of confidence. This principle implies that a party’s declaration must be given the sense its counterparty can give to it in good faith, based on its wording, the context and the concrete circumstances in which it was expressed. In this regard, however the immediate interpretation of the literal meaning of the relevant clause is the first step, attention should be paid to other factors and interpretative tools, too i.e. all relevant circumstances of the case - namely the negotiations and any subsequent conduct of the parties -, the wording of the entire agreement and the review of all means of evidence. I. THE PARTIES 1. Al Ain Football Club (“Al Ain” or the “Appellant”) is an Emirati football club having its office seat Sheikh Khalifa International Stadium in Al Ain, Abu Dhabi, United Arab Emirates. The Appellant is affiliated to the United Arab Emirates Football Association (the “UAEFA”). The UAEFA, in turn, is affiliated to the Fédération Internationale de Football Association (the “FIFA”), the world governing body of football. 2. Sunderland Association Football Club (“Sunderland” or the “Respondent”) is an English football club having its seat, in Sunderland, United Kingdom. The Respondent is affiliated to the English Football Association (the “FA”). The FA is also a member of FIFA. 3. The Appellant and the Respondent will be jointly referred to as the “Parties”. II. FACTUAL BACKGROUND 4. This appeal was filed by Al Ain against the Decision of the Single Judge of the FIFA Players’ Status Committee passed on 8 September 2015 (the “Decision”). The grounds of the Decision were notified to the Appellant and to the Respondent on 18 March 2016. CAS 2016/A/4544 2 Al Ain FC v. Sunderland AFC, award of 30 January 2017 5. The circumstances stated below are a summary of the main relevant facts, as submitted by the Parties in their written pleadings or in the evidence offered in the course of the proceedings. Additional facts may be set out, where relevant, in connection with the legal discussion which follows. While the Sole Arbitrator took duly note of all the evidence and legal arguments raised, in this award the Sole Arbitrator only refers to the submissions and evidence considered necessary to explain his reasoning. 6. The present contractual dispute is related to the right of the Respondent to receive payment in the amount of EUR 250,000 as a contingent fee due in the event that the player A. (the “Player”) has scored 20 goals or more for the Appellant for the season 2014/2015. 7. The contractual basis for such contingent fee is found in Clause 3.1.3 of a permanent transfer agreement dated 20 June 2012 entered into between Sunderland and Al Ain for the permanent transfer of the Player from the Respondent to the Appellant (the “Transfer Agreement”). 8. The Transfer Agreement was preceded by a loan agreement entered into by the Parties on 9 September 2011 for the temporary transfer of the Player from the Respondent to the Appellant for the period from 9 September 2011 until 30 June 2012 (the “Loan Agreement”). In consideration of the loan of the Player to Al Ain, the Appellant agreed to pay to the Respondent a guaranteed net fee in the amount of EUR 6,000,000 payable in two equal installments (Clause 2.1 of the Loan Agreement). 9. The Loan Agreement contained a permanent transfer option (the “Option”, Clause 3.1 of the Loan Agreement). Should Al Ain decide to exercise the Option it would pay to Sunderland a guaranteed net fee of EUR 2,000,000 (two million Euros) payable in three installments (the “Guaranteed Option Fee”, Clause 3.3 of the Loan Agreement). 10. In addition to the Guaranteed Option Fee, Al Ain consented to pay to Sunderland contingent fees further to Al Ain utilizing the Option (the “Contingent Fees”, Clauses 4.1.1 - 4.1.3 and Clauses 4.2 - 4.5 of the Transfer Agreement, the latter not being relevant for the present case). The Contingent Fees were conditional depending on: (i) Al Ain winning the UAE Pro League and the Player appearing on the field in at least 50% of the Al Ain’s games during that season (Clause 4.1.1 of the Loan Agreement); (ii) Al Ain winning the UAE President Cup during the term of the Player’s contract with Al Ain and the Player having appeared in 50% of that season games (Clause 4.1.2 of the Loan Agreement); (iii) reaching a threshold of 20 goals scored by the Player per season (Clause 4.1.3 of the Loan Agreement). 11. The Appellant decided to exercise the Option and on 20 June 2012 Sunderland and Al Ain executed the Transfer Agreement. The Transfer Agreement in Clause 2.1 referred to the Option contemplated in Clause 3.1 of the Loan Agreement. 12. In accordance with the terms of the Loan Agreement, the parties to the Transfer Agreement further agreed to contingent fees which were payable by Al Ain to Sunderland under the same conditions as stipulated in the Loan Agreement (see § 9 above). In addition to the transfer fee, CAS 2016/A/4544 3 Al Ain FC v. Sunderland AFC, award of 30 January 2017 Al Ain consented to pay to Sunderland the Contingent Fees (Clause 3 “Contingent Fees” of the Transfer Agreement). The Contingent Fees under Clauses 3.1.3, 3.1.2 and 3.1.3 of the Transfer Agreement (the contingent fees under Clause 3.2 - 3.5 of the Transfer Agreement are not relevant for the present case) were payable upon the occurrence of any of three conditions which were virtually the same as those contemplated in Clauses 4.1.1. 4.1.2 and 4.1.3 of the Loan Agreement: (i) if Al Ain wins the UAE Pro League and the Player has appeared on the field of play in 50% of the games that season then Al Ain would pay Sunderland a net fee of EUR 400,000. The maximum Sunderland could attain under this clause was capped to a limit of EUR 1,200,000 (Clause 3.1.1 of Transfer Agreement); (ii) if Al Ain wins the UAE President Cup during the term of the Player’s contract with Al Ain and the Player has appeared in 50% of that season games then Al Ain would pay Sunderland a net fee of EUR 300,000. The maximum Sunderland could attain under this clause was capped to a limit of EUR 900,000 (Clause 3.1.2. of the Transfer Agreement); (iii) per season, when the Player has scored 20 goals scored for Al Ain the latter shall pay Sunderland a net fee of EUR 250,000 (Clause 3.1.3 of the Transfer Agreement). 13. The Player was playing for Al Ain until 7 July 2015 when a transfer agreement between Al Ain and the Chinese club SIPG was signed for the Player’s further permanent transfer. 14. It is not in dispute between the Parties that during the season 2014/2015 the Player was registered for Al Ain. It is further not in dispute that the Player had the following achievements in that season: 13 goals scored in the UAE Pro League, 5 goals scored in the Asian Football Confederation Champions League (the “AFC Champions League”) and 4 goals scored in the UAE President Cup. III. THE FIFA PROCEEDINGS 15. Having explained that despite several reminders, Al Ain failed to reply to their communications and failed to make the relevant payment, on 26 May 2015 Sunderland lodged a claim before FIFA against Al Ain requesting payment of a total amount of EUR 650,000 being the sum of the Contingent Fees under Clause 3.1.1 (EUR 400,000) and Clause 3.1.3 (EUR 250,000) of the Transfer Agreement. 16. In its reply to the claim, Al Ain partially rejected the allegations made by Sunderland. The Appellant confirmed the debt of EUR 400,000 being the Contingent Fees due for winning UAE Pro League in the season 2014/2015 but added that it had never received any invoices from Sunderland as it stated in its claim. Al Ain held on the opinion that the Player had only scored 13 goals in the UAE Pro League in the season 2014/2015. 17. Further in its reply, the Appellant explained that any goal scored in competitions different than those mentioned in the Transfer Agreement (UAE Pro League and UAE President Cup, CAS 2016/A/4544 4 Al Ain FC v. Sunderland AFC, award of 30 January 2017 Clauses 3.1.1 and 3.1.2) should be considered excluded from the agreement between Al Ain and Sunderland. Al Ain asserted that only the goals scored within the frame of domestic competitions should have been counted for the purpose of payment of the Contingent Fees under Clause 3.1.3 of the Transfer Agreement.

Load more