' Sala Case Consolidated '
Posted: Mon Jun 01, 2020 8:25 am
Lots of confusion surrounding this case, often due to posts being removed etc.
Lots of misunderstanding about what was or wasn't in the contract, what was or wasn't in the clauses that needed to be fulfilled. Here is the one thread with all there is to know about the case, why FIFA have ruled the club have to pay and the explanations behind it.
Some may know the details and read the case already, others clearly have not, so hopefully people can get the information here. Those that do want to read the FIFA 21 page document can do so here:-
https://resources.fifa.com/image/upload ... ydvrzqrqdw
It will be updated with any news as and when it develops.
The timeline of events
- 18th of January - Sala successfully passes medical with Cardiff City FC and signs contact with club, agreeing to pay Nantes 17m Euros in 3 installments.
- 19th of January - Nantes and Sala sign a termination of the employment contract with Nantes which was then duly ratified by the LFP (French FA).
- 21st of January 10.00am GMT - FAW requested the ITC document (International clearance document) from the FFF (French Football Federation).
- 21st of January 16.17pm GMT - FAW recieve the ITC from the FFF and register the player with Cardiff in the TMS (Transfer matching system) making his registration with Cardiff final.
- 21st of January 17.50pm GMT - FAW entered the registration date into the ITMS (International Transfer Matching System) and confirmed receipt of the ITC.
- 21st of January 20:23pm GMT - Piper aircraft disappears from radar bound for Cardiff airport.
Who was involved in the FIFA hearing?
The following case was put to FIFA representatives making up the Bureau of the Players' Status Committee on the 29th September 2019.
The Committee was made up of; Raymond Hack (South Africa), Chairman Roy Vermeer (The Netherlands), member Anna Peniche (Mexico), member Castellar Guimaraes Neto (Brazil), member.
Nantes FC was represented by Mr J. Marsaudon, Mr L. Absil and Mr D. Casserly
Cardiff City FC was represented by Mr S. Demeulemeester and Mr G. Bouchat
Details of the much talked about club to club transfer contract clauses
There was 4 clauses that had to be met as per clause 2.1 in the transfer agreement prior to any transfer being made official. They were:-
2.1.1. The player completing a successful medical examination with Cardiff City FC;
2.1.2. FC Nantes and the Player agreeing all the terms of a mutual termination of FC Nantes contract of employment with the Player
2.1.3. The mutual termination of FC Nantes contract of employment with the Player is registered by the LFP;
2.1.4. The LFP and the FAW have confirmed to Cardiff City FC and FC Nantes that the Player has been registered as a Cardiff City FC player and that the Player’s International Transfer Certificate has been released
The two main arguments of Cardiff City
1) The players registration was rejected by the Premier League as the structure of the signing on fee in the contract (one lump sum) contravened its rules regarding these payments (Rule T17) where they must be spread over the length of the contact.
They cited an email from the Premier League which read:-
''Michelle, unfortunately we are unable to accept your submission as a “New Registration”. Please create a new application selecting “Permanent Transfer” as your original application cannot be edited due to the incorrect transaction type being used. Also, after reviewing the Contract we would require the signing-on fee to be amended. It is currently not being payable in equal installments as there appears to be no installment payable in the player’s final contract year (1 July 2021 – 30 June 2022)”.
ii) Adding to that, Cardiff recalled that its membership to the Premier League had been a fundamental term of the transfer agreement, as Nantes “was only prepared to sell the player to a Premier League club” and referred to clause 3.2.1. of the transfer agreement, which provided for the payment of “bonuses to Nantes if [Cardiff] “retains its Premier League Status”.
The bonus payment clauses were as follows:-
(i) EUR 1,000,000 if Cardiff “participate and retains its Premier League Status following the close of the football season 2018/2019”;
(ii) EUR 500,000 if Cardiff “participate and retains its Premier League Status following the close of the football season 2019/2020”
(iii) EUR 500,000 if Cardiff “participate and retains its Premier League Status following the close of the football season 2020/2021”.
2) Cardiff’s second main argument concerned Nantes’ alleged responsibility for the circumstances leading to the player’s death.
Cardiff inferred that, since the player’s flight had been wrongfully organised by his agent Mr Willie McKay and his company ‘Mercato’ acting under Nantes’ mandate, the French club was to be considered “civilly liable for the legal consequences resulting from this accident as if it had organized it itself”. In this context, Cardiff held that, after having been declared ineligible to be a registered football agent due to bankruptcy, Mr Willie McKay had formed the company ‘Mercato’ “to operate as a football agency company”
How FIFA addressed those points
1) The members of the Bureau pointed out that the registration of an employment contract with the Premier League not only consists of an internal matter between Cardiff and the Premier League and/or the FAW, but also something of which Nantes had no influence.
As a result, whether or not Cardiff and the agents representing the player had carried out the required due diligence in drafting an employment contract that was in conformity with the Premier League’s specific rules or not, can in no way affect the validity of the transfer agreement concluded between Nantes and Cardiff. The ability to register a player with the Premier League does not make an employment contract invalid.
ii) Further to this, the clauses in the contract were team based and not player based, meaning the player's non registration to the league did not provide a barrier to fulfillment. This was also confirmed by the following stipulation in the transfer contract marked point 6:-
6. More specifically, the “promotion bonus” is due to Nantes even in case the player “has not been registered with Cardiff City FC during the season which Cardiff City FC participates and retains its Premier League Status”
Nantes stipulated they wished to sell to a Premier League club and that is what they did, Cardiff were a Premier League club.
2) At this point, the Bureau was eager to underline that, despite the tragic passing of the player as well as the criminal and civil liability developments it may possibly trigger, the dispute lodged before FIFA by Nantes remains of a purely contractual nature. Proceedings of a criminal nature is the mandate of local courts. If the local courts would determine any criminal or civil liability on the side of Nantes, it is also for the local courts to determine the consequences of such liability. The Bureau held that Cardiff had not been able to prove that the outcome of the those local proceedings would be relevant for the outcome of the dispute pertaining to whether or not a transfer fee is due.
Cardiff were ordered by FIFA to pay any outstanding monies (first installment) + 5% interest to Nantes. Cardiff refused and have taken the appeal to CAS.
Significant events since the ruling
- 28th January 2020 - Cardiff attempt to seek damages from Nantes via French authorities. But Nantes criticised the Bluebirds over the latest move, saying it was "absolutely stunned by Cardiff's umpteenth attempt to exploit this tragedy". Its statement added: "FC Nantes has always shown a very quiet attitude since the beginning of these events. "FC Nantes has always acted in good faith, while Cardiff has made repeated attempts to destabilise public opinion with falsehoods.''
- 11th March 2020 - No further action over manslaughter arrest. In June, Dorset Police arrested a 64-year-old man from North Yorkshire. The force said it would "not be seeking a formal charging decision by the CPS in relation to homicide offences". Det Insp Simon Huxter said: "We have carried out a detailed examination into the circumstances of Mr Sala's death, this has been a complex investigation involving the examination of a large amount of evidence and in liaison with a range of organisations.
Lots of misunderstanding about what was or wasn't in the contract, what was or wasn't in the clauses that needed to be fulfilled. Here is the one thread with all there is to know about the case, why FIFA have ruled the club have to pay and the explanations behind it.
Some may know the details and read the case already, others clearly have not, so hopefully people can get the information here. Those that do want to read the FIFA 21 page document can do so here:-
https://resources.fifa.com/image/upload ... ydvrzqrqdw
It will be updated with any news as and when it develops.
The timeline of events
- 18th of January - Sala successfully passes medical with Cardiff City FC and signs contact with club, agreeing to pay Nantes 17m Euros in 3 installments.
- 19th of January - Nantes and Sala sign a termination of the employment contract with Nantes which was then duly ratified by the LFP (French FA).
- 21st of January 10.00am GMT - FAW requested the ITC document (International clearance document) from the FFF (French Football Federation).
- 21st of January 16.17pm GMT - FAW recieve the ITC from the FFF and register the player with Cardiff in the TMS (Transfer matching system) making his registration with Cardiff final.
- 21st of January 17.50pm GMT - FAW entered the registration date into the ITMS (International Transfer Matching System) and confirmed receipt of the ITC.
- 21st of January 20:23pm GMT - Piper aircraft disappears from radar bound for Cardiff airport.
Who was involved in the FIFA hearing?
The following case was put to FIFA representatives making up the Bureau of the Players' Status Committee on the 29th September 2019.
The Committee was made up of; Raymond Hack (South Africa), Chairman Roy Vermeer (The Netherlands), member Anna Peniche (Mexico), member Castellar Guimaraes Neto (Brazil), member.
Nantes FC was represented by Mr J. Marsaudon, Mr L. Absil and Mr D. Casserly
Cardiff City FC was represented by Mr S. Demeulemeester and Mr G. Bouchat
Details of the much talked about club to club transfer contract clauses
There was 4 clauses that had to be met as per clause 2.1 in the transfer agreement prior to any transfer being made official. They were:-
2.1.1. The player completing a successful medical examination with Cardiff City FC;
2.1.2. FC Nantes and the Player agreeing all the terms of a mutual termination of FC Nantes contract of employment with the Player
2.1.3. The mutual termination of FC Nantes contract of employment with the Player is registered by the LFP;
2.1.4. The LFP and the FAW have confirmed to Cardiff City FC and FC Nantes that the Player has been registered as a Cardiff City FC player and that the Player’s International Transfer Certificate has been released
The two main arguments of Cardiff City
1) The players registration was rejected by the Premier League as the structure of the signing on fee in the contract (one lump sum) contravened its rules regarding these payments (Rule T17) where they must be spread over the length of the contact.
They cited an email from the Premier League which read:-
''Michelle, unfortunately we are unable to accept your submission as a “New Registration”. Please create a new application selecting “Permanent Transfer” as your original application cannot be edited due to the incorrect transaction type being used. Also, after reviewing the Contract we would require the signing-on fee to be amended. It is currently not being payable in equal installments as there appears to be no installment payable in the player’s final contract year (1 July 2021 – 30 June 2022)”.
ii) Adding to that, Cardiff recalled that its membership to the Premier League had been a fundamental term of the transfer agreement, as Nantes “was only prepared to sell the player to a Premier League club” and referred to clause 3.2.1. of the transfer agreement, which provided for the payment of “bonuses to Nantes if [Cardiff] “retains its Premier League Status”.
The bonus payment clauses were as follows:-
(i) EUR 1,000,000 if Cardiff “participate and retains its Premier League Status following the close of the football season 2018/2019”;
(ii) EUR 500,000 if Cardiff “participate and retains its Premier League Status following the close of the football season 2019/2020”
(iii) EUR 500,000 if Cardiff “participate and retains its Premier League Status following the close of the football season 2020/2021”.
2) Cardiff’s second main argument concerned Nantes’ alleged responsibility for the circumstances leading to the player’s death.
Cardiff inferred that, since the player’s flight had been wrongfully organised by his agent Mr Willie McKay and his company ‘Mercato’ acting under Nantes’ mandate, the French club was to be considered “civilly liable for the legal consequences resulting from this accident as if it had organized it itself”. In this context, Cardiff held that, after having been declared ineligible to be a registered football agent due to bankruptcy, Mr Willie McKay had formed the company ‘Mercato’ “to operate as a football agency company”
How FIFA addressed those points
1) The members of the Bureau pointed out that the registration of an employment contract with the Premier League not only consists of an internal matter between Cardiff and the Premier League and/or the FAW, but also something of which Nantes had no influence.
As a result, whether or not Cardiff and the agents representing the player had carried out the required due diligence in drafting an employment contract that was in conformity with the Premier League’s specific rules or not, can in no way affect the validity of the transfer agreement concluded between Nantes and Cardiff. The ability to register a player with the Premier League does not make an employment contract invalid.
ii) Further to this, the clauses in the contract were team based and not player based, meaning the player's non registration to the league did not provide a barrier to fulfillment. This was also confirmed by the following stipulation in the transfer contract marked point 6:-
6. More specifically, the “promotion bonus” is due to Nantes even in case the player “has not been registered with Cardiff City FC during the season which Cardiff City FC participates and retains its Premier League Status”
Nantes stipulated they wished to sell to a Premier League club and that is what they did, Cardiff were a Premier League club.
2) At this point, the Bureau was eager to underline that, despite the tragic passing of the player as well as the criminal and civil liability developments it may possibly trigger, the dispute lodged before FIFA by Nantes remains of a purely contractual nature. Proceedings of a criminal nature is the mandate of local courts. If the local courts would determine any criminal or civil liability on the side of Nantes, it is also for the local courts to determine the consequences of such liability. The Bureau held that Cardiff had not been able to prove that the outcome of the those local proceedings would be relevant for the outcome of the dispute pertaining to whether or not a transfer fee is due.
Cardiff were ordered by FIFA to pay any outstanding monies (first installment) + 5% interest to Nantes. Cardiff refused and have taken the appeal to CAS.
Significant events since the ruling
- 28th January 2020 - Cardiff attempt to seek damages from Nantes via French authorities. But Nantes criticised the Bluebirds over the latest move, saying it was "absolutely stunned by Cardiff's umpteenth attempt to exploit this tragedy". Its statement added: "FC Nantes has always shown a very quiet attitude since the beginning of these events. "FC Nantes has always acted in good faith, while Cardiff has made repeated attempts to destabilise public opinion with falsehoods.''
- 11th March 2020 - No further action over manslaughter arrest. In June, Dorset Police arrested a 64-year-old man from North Yorkshire. The force said it would "not be seeking a formal charging decision by the CPS in relation to homicide offences". Det Insp Simon Huxter said: "We have carried out a detailed examination into the circumstances of Mr Sala's death, this has been a complex investigation involving the examination of a large amount of evidence and in liaison with a range of organisations.