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What obligations do clubs owe players if suspending their contract for Covid-19 (FCSB v Planic)?

What obligations do clubs owe players if suspending their contract for Covid-19 (FCSB v Planic)?
Friday, 12 August 2022 By Madalina Diaconu

The case of FC FCSB SA v. Bogdan Planic1 is of notable interest to sports clubs, players and sports law practitioners who deal with the financial consequences of the COVID-19 pandemics and related employment law disputes.

Indeed, it is one of the rare cases where a Court of Arbitration for Sport (CAS) panel partially allowed an appeal filed by a club against a FIFA Dispute Resolution Chamber ( DRC) decision. In their decision, DRC determined that a player whose employment contract had been suspended by a club during the COVID-19 pandemics had just cause to terminate their contract under Art. 14bis of the FIFA Regulations on the Status and Transfer of Players ( RSTP) and was entitled to substantial compensation.

This CAS award is interesting for clarifying some key aspects of COVID-19-related employment disputes, such as:

  • the applicability of national law in dealing with the consequences of the COVID-19 pandemics on sport employment contracts;

  • a club’s responsibilities, as an employer, during the suspension of employment contracts during COVID-19;

  • the effective date of suspension of contracts; and

  • the assessment of compensation, including mitigation.

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Written by

Madalina Diaconu

Madalina Diaconu

A Swiss qualified lawyer and an academic, Dr. Madalina Diaconu specializes in European and International Economic Law, with an emphasis on Sports Law; Gambling Law and on Human Rights. She has over twenty years’ experience in the practice of law, having worked notably for the International Olympic Committee, the European Court of Justice, the Swiss lottery and the UEFA Control, Ethics and Disciplinary Body.

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