Hadji Ba

Decisionofthe DisputeResolutionChamber passedon29November2023 regardinganemployment-relateddisputeconcerningtheplayerElHadjiBa COMPOSITION: CliffordJ.HENDEL(France/USA),DeputyChairperson AngelaCOLLINS(Australia),member LaurelVAURASI(Fiji),member CLAIMANT: ElHadjiBa,France RepresentedbyStefanoLaPorta RESPONDENT: ApollonLimassol,Cyprus RepresentedbyAlkisPapantoniou I.Factsofthecase 1.On13July2023,theFrenchplayerElHadjiBa(hereinafter:theClaimantortheplayer)andtheCypriotclubApollonLimassol(hereinafter:theRespondentortheclub)enteredintoa"terminationandsettlementagreement"toterminatetheemploymentcontractbymutualconsentwithimmediateeffect(hereinafter:theContract) 2.Art.3oftheContractreadsasfollows: Inconsiderationofthetermination,ApollonandthePlayeragreeandacceptthatAPOLLONshallarrangethepaymentofthetotalamountof€229370net(twohundredandtwenty-ninethousandthreehundredseventyeuro)intotal,whichwillbepaidasmentionedbelowatthepersonalbankaccountoftheplayer: 1.€27185payablethe15/7/2023 2.€27185payablethe10/8/2023 3.€17500payablethe31/8/2023 4.€17500payablethe30/9/2023 5.€17500payablethe31/10/2023 6.€17500payablethe30/11/2023 7.€17500payablethe31/12/2024 8.€17500payablethe31/1/2024 9.€17500payablethe28/2/2024 10.€17500payablethe31/3/2024 11.€17500payablethe30/4/2024 12.€17500payablethe31/5/2024 3.Art.4oftheContractreadsasfollows: Incaseanyofthepaymentreferredaboveisnotmadestrictlywithinitsduedatebytheclubtotheplayer(withagraceperiodof8workingdays)allremainingpaymentswillbecomeimmediately,automaticallyandjointlydue(asanaccelerationclauseagreedbetweentheparties)andapenaltyclauseintheamountof10%(tenpercent)ofthefullsettlementAmountwillhavetobepaidadditionallybytheClubtothePlayer. II.ProceedingsbeforeFIFA 4.On23October2023,theClaimantfiledtheclaimathandbeforeFIFA.Abriefsummaryofthepositionofthepartiesisdetailedincontinuation. a.PositionoftheClaimant 5.TheClaimantstatesthattheRespondentdulypaidthefirstthreeinstalmentsagreed,whileithasfailedtopaythefourthinstalment,whichfelldueon30September2023. 6.TheClaimantsustainsthat“AsaresultoftheRespondent'sfailuretopaythefourthinstalmentoftheCompensationby11October2023(i.e.within8workingdaysfromtheduedateof30September2023),thePlayerisentitledtoenforceimmediatelytheaforementionedaccelerationclause,andclaimalltheremainingamountoftheCompensationdueundertheAgreement(i.e.,€157,500)plus5%interest,aswellasthepenaltyof10%(i.e.,€22,937).” 7.TheClaimantstatesthat“GiventhePlayer'surgencytohaveavailablethemoneyowedtohimbytheClub,hehasnotpursuedtheprocedureunderarticle12bisRSTP,knowingthatthisdoesnotpreventhimtoenforcehisrightsundertheAgreement(seeCAS2020/A/7007).” 8.TheClaimantfiledthefollowingrequestsforrelief: TheClaimantrespectfullyrequeststheDRCtoacceptthisstatementofclaimandordertheRespondenttopaytheClaimant: I.€157,500,plus5%perannumintereststartingfrom1October2023untilthedateofpayment; II.apenaltyof€22,937accordingtoarticle4oftheAgreement. b.PositionoftheRespondent 9.Initsreply,theRespondentinsiststhattheaccelerationofthedebtwasnotvalidlytriggeredbytheClaimantsincehedidnotsendadefaultnotice. 10.TheRespondentsustainsthat“IfthePlayerwasnotrequiredtosentanoticetotheClubinordertoactivatetheagreed“graceperiod”,thenthepartieswouldhaveagreedforthecorrespondingduedatestobeseteightdayslater(i.e.on08.10.2023),ratherthansettheduedateon30.09.2023andagreeonanothereightdaysforthepayment,withoutneedinganyotheractionsonthepartoftheClaimant.” 11.TheRespondentfurthersustainsthattheaccelerationclauseisabusiveandshallberejectedasanexcessivepenaltyconsideringthespecificcircumstancesofthecaseathand,thereforebeinginvalidandnon-enforceableinaccordancewithSwisslaw. 12.TheRespondentreferstoart.12bisoftheRegulations,accordingtowhichtheClaimantwasobligedtosendanoticetotheClubinordertoactivatethegraceperiod. 13.Furthermore,theRespondentdeemsthattheaccelerationofdebtis“clearlydisproportionaltothedaysofdelayofpaymentoftheinstalment,aswellasthenumberofinstalmentsthatfelldueandtheamountthatfelldue”.Inthisregard,theRespondentstatesthatthe“totalamountequaltoEUR157,500(andafurtherpenaltyofEUR22,937),theoverdueamounttowardstheplayerwasonly17,500,delayedforonly23days,withoutanynotice,warningorremindersentbythePlayerandtakingintoaccountthatuntilthatmomenttheClubwaspunctualinthepaymentsarisingfromtheSettlementAgreement,havingalreadypaidEUR71,870forthreeinstalments”. 14.Astothepenaltyclause,theRespondentalsosustainsthatit“wasnotvalidlyactivatedbytheClaimantandcontrarytotheagreedmanner”. 15.TheRespondentunderscoresthat“theClubfailedtocompleteapaymentofEUR17,500foronly23 days,withoutreceivingadefaultnotice,areminderorawarningbythePlayerbeforehelodgedtheclaimfortherequestedpenalty.Theamountclaimedaspenalty(EUR22,937)isequalto131%oftheamountthathadfallendueatthetimeoftheclaim”. 16.Thus,intheviewoftheRespondent,thepenaltyofEUR22,937requestedbytheClaimantisexcessiveandshallberejected. 17.Subsidiarily,theRespondentrequestthatthepenaltyshallbecalculatedonthebasisoftheamountremainingdueonthebasisoftheSettlementAgreement,i.e