Introducing “Moral damages” for terminating a football player’s contract: lessons from Ariosa v. Club Olympia
The Court of Arbitration for Sport (the “CAS”) in Ariosa v. Club Olympia1 has for the first time introduced into the scope of compensation due to players following a termination without “just cause”2 by their club the concept of “moral damages”. The decision also found that the broad regulatory concept of “specificity of sport”3 can be applied to increase compensation to a player when a club’s conduct has been so serious as to undermine the “sporting ethics” of football.
Although Press headlines4 have focused on Sebastian Ariosa’s appalling treatment by his former club, Club Olympia of Paraguay, whilst undergoing chemotherapy for cancer, it is the widening of the scope of compensation available to players in response to a termination without “just cause” which will be of greatest interest to legal advisers.
This article proposes to look at the facts of the case, the decisions before the FIFA Dispute Resolution Chamber (the “DRC”) and then CAS, before considering to what extent the decision really sets down a precedent for future player contract disputes?
Before doing so, it is the essential theses of this article that:
- Far from opening up a new avenue of compensation for players, “moral damages” will be very rarely awarded in practice and, in any event, how such compensation is calculated is unclear; and,
- The use of “specificity of sport” for the benefit of players is not a novel concept but, rather, is likely to be more readily applied by CAS in the future to “fit” the particular circumstances of each case to ensure proper justice is done to the player “victim”.
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- Tags: Contract Law | Court of Arbitration for Sport (CAS) | Employment Law | FIFA | FIFA Dispute Resolution Chamber | FIFA Regulations on the Status and Transfer of Players | FIFPro | Football | Moral Damages | Player Contracts | Uruguay
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Written by
John Mehrzad KC
John Mehrzad KC is a Barrister at Fountain Court Chambers specialising in sports law, employment and commercial disputes, across the fields of litigation, domestic and international arbitration as well as cross-border matters.
He was appointed as a silk after only 12 full years’ practice – the fastest barrister appointee of the 2019 competition. More recently, he was listed in The Lawyer’s “Hot 100 2023”, and he has been described in the legal directories as “exceptional and a true heavyweight in his field” with the recommendation that “if you want to win – you want him on your side before the opposition snaps him up”. He was nominated as ‘Sports Law Silk of the Year’ by The Legal 500 in 2022 and 2023.
FONDA BYERSON
great read....
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Josep F. Vandellos Alamilla
Excellent article.
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Adrian STANGACIU
Very interesting article.
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