CAS ruled that, to validly invoke a buy-out clause, the terminating party must strictly comply with its terms

CAS 2019/A/6246 Ruslan Zaerko v. FC Nizhny Novgorod & Football Union of Russia

Date of the decision: 2020-05-27

Arbitrator(s): André Brantjes

The dispute between Ruslan Zaerko (Player) and FC Nizhny Novgorod (Club) arose after the Club terminated the employment contract with the Player on the basis of a buy-out clause. Interestingly, the Club paid the pre-agreed amount only partially. On this basis, the Sole Arbitrator found that the Club failed to validly invoke the buy-out clause and therefore terminated the employment contract without just cause. In addition, the consequences of a late filing of a Statement of Appeal due to a fault of a courier post service were also examined.

Facts of the case

On 1 February 2018, the Player and the Club signed an employment contract (Employment Contract) for a fixed period until 5 June 2019.

The following clause was implemented into the Employment Contract, regulating its premature termination:

“11.6. The Employee has the right to terminate this Labor Contract without sport sanctions being imposed on it and take a job with another professional football club, provided that the Employee carries out a monetary payment in the amount of 2 500 000 (two million five hundred thousand) rubles (‘buy-out...

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