CAS Upholds Agency Claims Against CFR Cluj
Nir Inbar Sports Law & Business successfully represented its clients in consolidated proceedings before the Court of Arbitration for Sport against Romanian club FC CFR 1907 Cluj.
The dispute concerned unpaid amounts arising under football agency agreements, including the contractual principal, agreed penalties and contractual interest.
CAS confirmed its jurisdiction to hear the claims despite the unavailability of the FIFA Agents Chamber as a functioning dispute-resolution forum.
The award upheld the claims in full and ordered CFR Cluj to pay the outstanding contractual amounts, together with the applicable penalties and interest. The club was also ordered to bear the arbitration costs and make a contribution toward the claimants’ legal fees.
The decision confirmed several important principles concerning the enforcement of football agency agreements under Swiss law.
Contractual penalties do not require proof of actual loss
CAS confirmed that a valid contractual penalty may be enforceable without the claimant having to demonstrate that it suffered a corresponding amount of financial damage.
Contractual penalties serve an independent function. They encourage performance and provide an agreed consequence where a party fails to comply with its obligations.
Their enforceability remains subject to the applicable law, the wording of the agreement and the tribunal’s ability to review an excessive penalty.
Penalties and default interest may apply together
The award also confirmed that a contractual penalty and default interest are not necessarily mutually exclusive.
Both remedies may apply where they serve different legal and commercial purposes. Default interest compensates the creditor for the delay in receiving payment, while a contractual penalty may sanction the failure to perform the contractual obligation as agreed.
Careful drafting is therefore essential. The agreement should clearly explain the circumstances in which each remedy applies and whether the parties intended them to operate cumulatively.
Acceleration clauses must retain practical effect
The proceedings also concerned contractual acceleration provisions under which future instalments became payable following a failure to make the agreed payments.
CAS interpreted the relevant provisions in a manner that preserved their practical and commercial effect.
An acceleration clause should not be drafted as an abstract threat. It must clearly identify the triggering event, the amounts that become due and the procedure, including any notice or cure period, that must be followed.
The absence of a FIFA forum does not extinguish contractual rights
The temporary unavailability of the FIFA Agents Chamber did not allow the club to avoid its contractual obligations.
The absence of an available FIFA dispute-resolution body does not, by itself, cancel the parties’ substantive rights or prevent a claim from being pursued before another competent forum where a valid jurisdictional basis exists.
This point is particularly important under the current FIFA Football Agent Regulations landscape. Agents, agencies, players and clubs should not assume that FIFA will necessarily provide an available forum for every commission or representation dispute.
Representation agreements should therefore include clear and enforceable provisions on jurisdiction, arbitration, governing law, payment obligations, default, interest, penalties and acceleration.
The award demonstrates the importance of combining precise contractual drafting with an effective dispute-resolution strategy.
Special recognition is due to Assaf Gofer, Partner at Nir Inbar Sports Law & Business, for his excellent work throughout the proceedings.
Nir Inbar Sports Law & Business advises and represents football agents, agencies, players and clubs in contractual disputes and proceedings before CAS, FIFA and national arbitration bodies.
