Zelaya

Decisionofthe DisputeResolutionChamber passedon25October2023 regardinganemployment-relateddisputeconcerningtheplayerEmilioJoseZelaya BY: RoyVermeer(TheNetherlands),SingleJudge CLAIMANT: EmilioJoseZelaya,Argentina RepresentedbyLoizosHadjidemetriou RESPONDENT: Ohod,SaudiArabia RepresentedbyGlobalSportConsulting I.Factsofthecase 1.On9January2023,theArgentinianplayerEmilioJoseZelaya(hereinafter:theClaimant)andtheSaudiclubOhod(hereinafter:theRespondent)concludedanemploymentcontracttovalidasfromsaiddateuntil8July2023. 2.On17May2023,theClaimantunilaterallyterminatedtheemploymentcontract. 3.On1June2023,thePartiesstipulatedasettlementagreement(hereinafter:theAgreement),bymeansofwhichtheRespondentundertooktopaytheClaimantatotalofUSD153,333brokendownasfollows: -(a)USD35,000until30/07/2023 -(b)USD35,000until30/09/2023 -(c)USD17,500until30/10/2023 -(d)USD66,333until30/12/2023 4.Inaccordancewithclause4oftheAgreement: “Shouldthe[Respondent]failtotimelyandfullycomplywithanyoneoftheinstalments: (a)The[Agreement]wouldbeimmediatelyterminated,andallremainingamountswouldbecomeimmediatelydueandpayableand (b)The[Respondent]wouldhavetopaylegalinterestof5%p.a.onallremainingamountsfrom25/05/2023untilfullsettlementand (c)The[Respondent]wouldpayaone-offpenaltyequaltothe35%ofallremainingamountsand (d)The[Respondent]wouldpaythe[Claimant]anadditionalamountofEUR5,000ascontributiontohislegalexpenses.” 5.Finally,underclause8oftheAgreement,thePartiesstipulatedthat“Shouldadisputearise,allamountswouldbeconsideredasduefrom25/05/2023andthe[Claimant]wouldhavetherighttoinitiatea12bisproceedingwithoutfirsthavingtoputtheRespondentindefaultfor10days(…)”. 6.On10August2023,theRespondentpaidtotheClaimantatotalofUSD59,335. II.ProceedingsbeforeFIFA 7.On16August2023theClaimantfiledtheclaimathandbeforeFIFA.Abriefsummaryofthepositionofthepartiesisdetailedincontinuation. a.PositionoftheClaimant 8.AccordingtotheClaimant,theRespondentfailedtocomplyinatimelymannerwithitsfinancialobligationsassetunderclause4oftheAgreement,hencethisshallbedeemedasterminatedon1August2023andtheRespondentshouldpaytherelevantpenaltyfeecorrespondingto35%oftheamountsstipulatedtheretoinadditiontotherespectiveinterestrunningasfrom25May2023aswellasacontributiontothelegalexpensesincurredbytheClaimant. 9.Notwithstandingtheabove,theClaimantconfirmedhavingreceivedapaymentofUSD59,335on10August2023,henceherequestedtodeductsuchamountfromtheoutstandingdebtcarriedbytheRespondent. 10.TherequestsforreliefoftheClaimantwerethefollowing: -USD93,998asoutstandingamountplus5%interestp.a.asfrom25May2023; -USD53,666.55aspenaltyfee; -USD5,000asoutstandinglegalfeesunderthesettlementagreement. b.PositionoftheRespondent 11.Initsreply,theRespondentallegedhavingsufferedfinancialdifficultiesandacknowledgedoutstandingsumsinfavoroftheClaimantforatotalofUSD93,998. 12.Conversely,regardingtheclaimedpenaltyfee,theRespondentobjectedtoitsproportionalityinrespecttotheresidualoutstandingamount,thusarguingthatsaidfeeshallbereducedbyFIFAbecauseitcurrentlycorrespondstomorethan50%ofthesumduetotheClaimant. 13.Finally,theRespondentdidnotcontesttheClaimant’sdemandforcontributiontohislegalexpensesintheamountofUSD5,000basedonclause4oftheAgreement. III.ConsiderationsoftheDisputeResolutionChamber a.Competenceandapplicablelegalframework 14.Firstofall,theSingleJudgeoftheDisputeResolutionChamber(hereinafteralsoreferredtoastheSingleJudge)analysedwhetherhewascompetenttodealwiththecaseathand.Inthisrespect,ittooknotethatthepresentmatterwaspresentedtoFIFAon16August2023andsubmittedfordecisionon25October2023.Takingintoaccountthewordingofart.34oftheMarch2023editionoftheProceduralRulesGoverningtheFootballTribunal(hereinafter:theProceduralRules),theaforementionededitionoftheProceduralRulesisapplicabletothematterathand. 15.Subsequently,theSingleJudgereferredtoart.2par.1oftheProceduralRulesandobservedthatinaccordancewithart.23par.1incombinationwithart.22lit.b)oftheRegulationsontheStatusandTransferofPlayers(May2023edition),theSinglejudgeoftheDisputeResolutionChamberiscompetenttodealwiththematteratstake,whichconcernsanemployment-relateddisputewithaninternationaldimensionbetweenaplayerfromArgentinaandaclubfromSaudiArabia. 16.Subsequently,theSingleJudgeanalysedwhichregulationsshouldbeapplicableastothesubstanceofthematter.Inthisrespect,itconfirmedthat,inaccordancewithart.26par.1and2oftheRegulationsontheStatusandTransferofPlayers(May2023edition),andconsideringthatthepresentclaimwaslodgedon16August2023,theaforementionededitionofsaidregulations(hereinafter:theRegulations)isapplicabletothematterathandastothesubstance. b.Burdenofproof 17.TheSingleJudgerecalledthebasicprincipleofburdenofproof,asstipulatedinart.13par.5oftheProceduralRules,accordingtowhichapartyclaimingarightonthebasisofanallegedfactshallcarrytherespectiveburdenofproof.Likewise,theSingleJudgestressedthewordingofart.13par.4oftheProceduralRules,pursuanttowhichhemayconsiderevidencenotfiledbytheparties,includingwithoutlimitationtheevidencegeneratedbyorwithintheTransferMatchingSystem(TM