Decisionofthe DisputeResolutionChamber passedon22November2023 regardinganemployment-relateddisputeconcerningtheplayerNicolasJeanPierreDiguiny BY: FransdeWeger(Netherlands),Chairperson CalumBeattie(Scotland),Member JohanvanGaalen(SouthAfrica),Member CLAIMANT: NicolasJeanPierreDiguiny,FranceRepresentedbyLOIZOSHADJIDEMETRIOU&ASSOCIATESL.L.C. RESPONDENT: APOLLONLIMASSOL,Cyprus RepresentedbyDimitriosNikolaidis I.Factsofthecase 1.On1July2022,theFrenchplayer,NicolasJeanPierreDiguiny(hereinafter:theplayerortheClaimant)andtheCypriotclub,APOLLONLIMASSOL(hereinafter:theclubortheRespondent)enteredintoanemploymentrelationshipthatcametoanendinSeptember2023bymutualagreement. 2.Forthispurpose,on13September2023,thepartiesconcluded2differentagreements:1.)theterminationagreementand2.)thefinancialagreement–whichcontainedtheconditionsunderwhichtheemploymentrelationshipthatboundthepartieswouldcometoanend(hereinafterjointlyreferredtoas:theagreements). 3.Inparticular,asperclauseBoftheterminationagreement,theRespondentundertooktopaytotheClaimantaterminationfeeofEUR90,000net,asfollows: -EUR11,250by1October2023; -EUR11,250by1November2023; -EUR11,250by1December2023; -EUR11,250by1January2024; -EUR11,250by1February2024; -EUR11,250by1March2024; -EUR11,250by1April2024; -EUR11,250by1May2024. 4.AsperclauseEoftheterminationagreement,thepartiesagreedthat,shouldtheRespondentfailtopayanyoftheaforementionedinstalmentsbytheirduedates,theRespondentwouldenjoya7days’graceperiodtoproceedwiththerelevantpaymentand,shouldthenon-paymentpersist,theClaimantwouldbeentitledtoclaim:A.)theresidualvalueoftheterminationfee(accelerationclause);B.)apenaltyfeeof20%oftheresidualvalueoftheterminationfee. 5.AccordingtoclauseBofthefinancialagreement,theRespondentwouldpaytotheClaimant–ontopoftheterminationfee–afinancialfeeofEUR128,385net,asfollows: -EUR16,048.12by1October2023; -EUR16,048.12by1November2023; -EUR16,048.12by1December2023; -EUR16,048.12by1January2024; -EUR16,048.12by1February2024; -EUR16,048.12by1March2024; -EUR16,048.12by1April2024; -EUR16,048.12by1May2024. 6.UnderclauseEofthefinancialagreement,thepartiesagreedonthesameconditionsagreedunderclauseEofthesettlementagreement,i.e.ontheaccelerationofthepaymentsofthefinancialfeeandtheobligationoftheclubtoproceedwiththepaymentofapenaltyof20%oftheresidualvalueofthefinancialfeeincaseofnon-paymentafteragraceperiodof7days. II.ProceedingsbeforeFIFA a.PositionoftheClaimant 7.On12October2023,theplayerlodgedaclaimagainsttheclubbeforeFIFA,requestingtobeawardedoutstandingremunerationandcompensationforbreachofcontractinthetotalamountofEUR262,062net,plus5%interestp.a.ontheprincipaldue,brokendownbytheClaimantasfollows: -EUR218,385correspondingtothewholesettlementfee(EUR90,000net)andthewholefinancialfee(EUR128,385net),plus5%interestp.a.asfrom2October2023untilthedateofeffectivepayment; -EUR43,677aspenalty,correspondingto20%oftheprincipaldue(218,385*0.2=43,677). 8.Inhisclaim,theplayerarguedthatdespitehavingenteredintothesettlementagreementandthefinancialagreement,theclubfailedtorespectitsincethebeginning,astheclubdidnotevenproceedwiththepaymentofthefirstinstalmentsthereof.InthiscontextandwhilereferringtoclausesBandEofbothagreement,theClaimantmaintainsbeingentitledtoreceivethefullvalueofthesettlementandfinancialfees,aswellasthepenaltycontractuallyagreed. b.PositionoftheRespondent 9.Initsreply,theclubargued–interalia–thefollowing: -Thattheplayerneverputtheclubindefaultofpayment,reasonwhytheclaimoftheplayerdoesnotmeettherequirementsofart.12bisoftheRSTP. -Thatitwastheplayerthepartythatsuggestedtheterminationofthecontractandthattheclubagreedtopay,asmonetarycompensation,“themajorityoftheamountsarisingfromhiscontractinrelationtothe2023/24season”;reasonwhytheclubarguesthatthosecannotbeconsideredasoutstandingmoneys,insofarastheplayerdidnotprovidehisservicesfortheclubinordertoreceivethem. -Thatthe7days’graceperiodtowhichclausesEofbothagreementsreferneededtobegrantedbytheplayerviaadefaultnoticeandtheplayerfailedtoputtheclubindefaultandgrantsaiddeadlineandthattheplayerlodgedthepresentclaimonly4daysaftertherelevantgraceperiodselapsed,whichisnotreasonable. -Thattheaccelerationclausesinsertedintheagreementsareabusive,sincetheclubonlyfailedtopaythefirstinstalmentsofbothagreements.Consequently,theclubarguesthatonlytheamountofEUR27,298(thesumofthefirstinstalmentunderbothagreements)isdueandthattheamountclaimedbytheplayerisnotproportionatetothedamagessuffered,asitamountsto“800%”ofthedueamount. -Inaddition,theRespondentrequestedFIFAtoalsorejecttheplayer’sentitlementtoreceivethepenaltyof20%ofthefeesdueaspertheagreementsand,subsidiary,toonlygranttotheplayeranamountequalto20%ofEUR27,298(thesumofthefirstinstalmentunderbothagreements),whichistheonlyamountthattheRespondentconsidersdue.Inthissense,theRespondentarguesthatthepenaltyrequested,i.e.EUR43,677equals“160%”oftheamountactuallydue(EUR27,298)andmustbeconsideredexcessiveand,hence,lowered,alsoconsideringthattheRespondentwasonlyindefaultofpaymentfor4daysbeforethepresentclaimwaslodged(counti