FIFA - Decisión disputa Gaitan 15112023

REF. FPSD-11652

Decision of the Dispute Resolution Chamber passed on 15 November 2023 regarding an employment-related dispute concerning the player Osvaldo Fabian Nicolas Gaitan

COMPOSITION:

Lívia SILVA KÄGI (Brazil & Switzerland), Deputy Chairwoman Dana MOHAMED AL-NOAIMI (Qatar), Member Stefano SARTORI (Italy), Member

CLAIMANT:

Osvaldo Fabian Nicolas Gaitan, Argentina & Portugal Represented by Ariel N. Reck

RESPONDENT: Sporting Clube de Braga, Portugal pg. 2

REF. FPSD-11652

I. Facts of the case

1. The parties to the present case are: - The Argentinian and Portuguese player, Osvaldo Fabian Nicolas Gaitan (hereinafter: the player or the Claimant); and - The Portuguese club, Sporting Clube de Braga (hereinafter: the club or the

Respondent).

2. Below is a summary of the relevant facts and allegations based on the parties’ written submissions and evidence presented. While the Dispute Resolution Chamber has considered all the facts, evidence, allegations and legal arguments submitted by the parties in the present proceedings, it refers in its decision only to the submissions and evidence it considers necessary to explain its reasoning.

3. On an unspecified date, the Claimant and the Respondent concluded an employment contract (hereinafter: the contract) valid as from 3 August 2020 until 30 June 2021.

4. The first part of the contract reads as follows: “PRIMER CONTRATANTE – SOCIEDAD DEPORTIVA (CLUB) SPORTING CLUBE DE BRAGA – FUTEBOL, SAD, sociedad anónima deportiva, contribuyente N° 504205498, con sede en el Estadio Municipal de Braga, de la ciudad de Braga, en calidad de entidad patronal y en adelante referenciada como primer contratante, club, o BRAGA SAD; y

SEGUNDO CONTRATANTE – JUGADOR OSVALDO NICOLÁS GAITÁN, de nacionalidad Argentina y Portuguesa, natural de San Martín, Argentina, nacido el 23/02/1988, atleta profesional de fútbol, portador del pasaporte N° C81220, con validez hasta el 20 de Marzo de 2023, en adelante referenciado como segundo contratante o Jugador;” Freely translated to English: “FIRST CONTRACTOR - SPORTS COMPANY (CLUB) SPORTING CLUBE DE BRAGA - FUTEBOL, SAD, sports limited company, taxpayer No. 504205498, with headquarters at the Municipal Stadium of Braga, in the city of Braga, in its capacity as employer and hereinafter referred to as the first contractor, club, or BRAGA SAD; and pg. 3

REF. FPSD-11652

SECOND CONTRACTING PARTY – PLAYER OSVALDO NICOLÁS GAITÁN, of Argentine and Portuguese nationality, born in San Martín, Argentina, born on 23/03/1988, professional football athlete, holder of passport No. C81220, valid until 30 March 2023, hereinafter referred to as the second contracting party or Player.”

5. In accordance with the contract the Respondent undertook to pay the Claimant a total net remuneration of EUR 475,000.

6. Clause 8 of the contract reads as follows: “1. La remuneración liquida es definida como remuneración bruta menos:

(i) Todas las contribuciones para la seguridad social que el CLUB y/o el JUGADOR deban pagar sobre la remuneración bruta total; (ii) Todos los impuestos en Portugal sobre la remuneración pagadera por el CLUB al JUGADOR, o sea i) impuesto a la renta ii) contribuciones adicionales, iii)

adicionales aplicables a rentas altas y, iv) cualesquiera otros impuestos y tasas o contribuciones cuya naturaleza sea basada en la remuneración del

JUGADOR.

2. Las partes acuerdan que, en caso de que las cargas tributarias en el sistema tributario portugués aumentaren en cualquier momento durante la vigencia del Contrato, o que al final de cada año civil la Administración Tributaria Portuguesa determine una carga tributaria para el JUGADOR que exceda los valores de base sobre los cuales el salario BRUTO del JUGADOR fue calculado, el CLUB asume el pago de los costos tributarios elevados que corresponden al Contrato y que son responsabilidad del JUGADOR, a fin de garantizar la integridad de la remuneración del JUGADOR y de manera que el JUGADOR nunca reciba un salario o cualquiera de los bonus arriba detallados, por menos de lo que se establece en este Contrato.

3. Si el jugador fuese notificado en 2021 (en relación a los ingresos de la segunda mitad de temporada 2020/2021 y de la primer mitad de temporada 2021/2022) y 2023 (en relación a los ingresos de la segunda mitad de la temporada 2021/2022) por la Autoridad Tributaria de Portugal, para pagar impuesto (IRS) adicional más allá de lo retenido mensualmente por BRAGA SAD, siendo este impuesto adicional respecto de los ingresos del jugador emergentes del presente contrato (o sea: salario base y premio por firma de contrato que constan en la Clausula 5 y los bonus que constan en las Cláusulas 6 y 7) será obligación de BRAGA SAD pagar dicho impuesto toda vez que los valores netos que constan del presente contrato son libres de impuestos. El

pago será efectuado en el plazo establecido a tal efecto por la Autoridad Tributaria desde que el jugador notifique a BRAGA SAD con al menos 15 días de anticipación en pg. 4 REF. FPSD-11652 relación al término del plazo, y podrá ser efectuado directamente a la Autoridad Tributaria o al jugador.” Freely translated to English "Net remuneration is defined as gross remuneration minus: (i) All social security contributions payable by the CLUB and/or the PLAYER on the total gross remuneration; (ii) All taxes in Portugal on the remuneration payable by the CLUB to the PLAYER, i.e., i) income tax, ii) additional contributions, iii) additional applicable to high incomes and, iv) any other taxes and fees or contributions whose nature is based on the remuneration of the PLAYER.

2. The parties agree that, in the event that the tax burdens in the Portuguese tax system increase at any time during the term of the Contract, or that at the end of each calendar year the Portuguese Tax Administration determines a tax burden for the PLAYER that exceeds the base values on which the PLAYER's GROSS salary was calculated, the CLUB assumes the payment of the higher tax costs corresponding to the Contract and which are the responsibility of the PLAYER, in order to guarantee the integrity of the PLAYER's remuneration and so that the PLAYER never receives a salary or any of the bonuses detailed above, for less than what is set forth in this Contract.

3. Should the PLAYER be notified in 2021 (in relation to the income of the second half of season 2020/2021 and the first half of season 2021/2022) and 2023 (in relation to the income of the second half of season 2021/2022) by the Portuguese Tax Authority, to pay additional tax (IRS) beyond what is withheld monthly by BRAGA SAD, being this

additional tax in respect of the PLAYER's income arising from this Contract (i.e,: base salary and prize for signature of contract that appear in Clause 5 and the bonuses that appear in Clauses 6 and 7) it will be obligation of BRAGA SAD to pay this tax since the net values that appear of the present contract are free of taxes. The payment will be made within the term established for this purpose by the Tax Authority since the player notifies BRAGA SAD with at least 15 days in advance in relation to the end of the term, and may be made directly to the Tax Authority or to the player."

7. Clause 18 of the contract reads as follows: “1. Las partes acuerdan como aplicables a este acuerdo a los reglamentos deportivos en vigor, aprobados por la FPF, LPFP y FIFA, como así también la demás legislación portuguesa.

2. Para la interpretación del presente contrato o resolución de cualquier litigio resultante de su aplicación o ejecución, las partes eligen, con renuncia a cualquier pg. 5

REF. FPSD-11652 otro fuero, los órganos de FIFA con recurso al TAS-CAS siendo la lengua de ambos procedimientos el inglés” Freely translated to English “The parties agree as applicable to this agreement the sports regulations in force, approved by the FPF, LPFP and FIFA, as well as other Portuguese legislation.

2. For the interpretation of this agreement or the resolution of any dispute arising from its application or execution, the parties choose, with waiver of any other jurisdiction, the organs of FIFA with appeal to TAS-CAS, the language of both procedures being English".

8. On 9 December 2022, the Portuguese tax authority issued a decision of the player’s tax liabilities for the fiscal year 2021 (hereinafter: the tax assessment), in which the player was required to pay EUR 163,518.63 as taxes. The deadline for payment of this amount was 26

January 2023.

9. On 9 January 2023, the player sent a letter to the club informing it of the tax liability arising from the tax assessment and requested the club to pay the amount of EUR 130,748.13.

10. On 25 January 2023, the club replied to the player stating that he was not a resident from 2016 to 2020 and that he should contest the tax assessment as no tax was actually due.

II. Proceedings before FIFA

11. On 4 September 2023, the Claimant filed the claim at hand before FIFA. A brief summary of the position of the parties is detailed in continuation.

a. Position of the Claimant

12. The Claimant lodged a claim for overdue payables, in which he stated that FIFA has jurisdiction to hear a dispute related to a tax issued arising from the contract, in particular from clause 8 of the contract, as this is employment-related on the basis of art. 22 par. 1 lit. b) of the Regulations on the Status and Transfer of Players (RSTP).

13. On this note, the Claimant argued that in accordance with the tax assessment, the Respondent shall be liable to pay EUR 130,748.13 out of EUR 163,518.63, amount which was directly linked to the player’s salary.

14. In view of the foregoing the Claimant requested the payment of EUR 130,748.13 plus 5% interest p.a. as from 25 January 2023 and to impose sporting sanctions on the Respondent. pg. 6

REF. FPSD-11652

b. Position of the Respondent

15. In its reply, the Respondent stated the Claimant has dual nationality Argentinian and Portuguese and that the applicable law to the present case is the Portuguese Labour code, according to which the player’s claim is prescribed and that it shall be dismissed.

16. In addition, the Respondent provided further allegations as to the merits of the case.

17. The Respondent requested FIFA the following relief:

• Accept its response. - To dismiss the claim of the Claimant. - To order the Claimant to assume the administration and procedural fees, if any.

c. Additional information provided by the Portuguese Football Federation

18. On 25 October 2023, the FIFA general secretariat requested the Portuguese Football Federation (FPF) to provide it with the nationality under which the player was registered with the club.

19. On 25 October 2023, the FPF informed FIFA that upon requesting the registration of the player, the club submitted the relevant application accompanied with the player’s Portuguese passport. Equally, the FPF presented FIFA with a copy of the said passport. pg. 7

REF. FPSD-11652

III. Considerations of the Dispute Resolution Chamber

20. First of all, the Dispute Resolution Chamber (hereinafter also referred to as Chamber or DRC) analysed whether it was competent to deal with the case at hand. In this respect, it took note that the present matter was presented to FIFA on 4 September 2023 and submitted for decision on 15 November 2023. Taking into account the wording of art. 34 of the March 2023 edition of the Procedural Rules Governing the Football Tribunal

(hereinafter: the Procedural Rules), the aforementioned edition of the Procedural Rules is applicable to the matter at hand.

21. Subsequently, the Chamber referred to art. 2 par. 1 of the Procedural Rules and observed that in accordance with art. 23 par. 1 in combination with art. 22 par. 1 lit. b) of the RSTP

(May 2023 edition), the Dispute Resolution Chamber is competent to deal with employment-related disputes between a club and a player of an international dimension, unless an independent arbitration tribunal guaranteeing fair proceedings exists at national level.

22. In light of the above, the Chamber outlined that the wording of the cited article clearly implies that the first condition that needs to be compulsorily fulfilled in order for FIFA to

be competent to hear an employment-related dispute between a club and a player is that said dispute has an international dimension. This means that FIFA is only competent to hear an employment-related dispute of such kind when the parties have different nationalities.

23. Before analysing the foregoing, the Chamber recalled the basic principle of burden of proof, as stipulated in art. 13 par. 5 of the Procedural Rules, according to which a party claiming a right on the basis of an alleged fact shall carry the respective burden of proof. Likewise, the Chamber stressed the wording of art. 13 par. 4 of the Procedural Rules, pursuant to which it may consider evidence not filed by the parties, including without limitation the evidence generated by or within the Transfer Matching System (TMS).

24. Entering the analysis of the present dispute, the Chamber first noted from the documentation on file that the player has dual nationality, Argentinian and Portuguese.

25. In this context, the Chamber referred to the jurisprudence of the Football Tribunal which shows that in cases where a player has dual citizenship, the registration is a determining factor when assessing if the international dimension of the dispute is given, considering that clubs may enjoy benefits in registering a player with a certain nationality, inter alia, due to the specific limitations in the number of foreign players. pg. 8

REF. FPSD-11652

26. Bearing in mind the foregoing, the Chamber observed that in accordance with the contract, the player has two nationalities, namely Argentinian and Portuguese, and that the player’s passport number recorded on it was none other than the one provided to FIFA by the FPF, valid until 20 March 2023.

27. In view of the aforementioned, the Chamber concluded that the player was registered under the same nationality as the club and therefore the present claim lacks international dimension as required by article 22 par. 1 lit b) of the RSTP. Hence, the Chamber

determined that the Football Tribunal does not have jurisdiction to hear the dispute at stake.

28. Lastly, the Chamber referred to art. 25 par. 1 of the Procedural Rules, according to which “Procedures are free of charge where at least one of the parties is a player, coach, football agent, or match agent”. Accordingly, the Chamber decided that no procedural costs were to be imposed on the parties. Likewise, and for the sake of completeness, the Chamber recalled the contents of art. 25 par. 8 of the Procedural Rules and decided that no procedural compensation shall be awarded in these proceedings. pg. 9

REF. FPSD-11652

IV. Decision of the Dispute Resolution Chamber

1. The Football Tribunal does not have jurisdiction to hear the claim of the Claimant, Osvaldo

Fabian Nicolas Gaitan.

2. This decision is rendered without costs.

For the Football Tribunal: Emilio García Silvero Chief Legal & Compliance Officer pg. 10

REF. FPSD-11652

NOTE RELATED TO THE APPEAL PROCEDURE: According to article 57 par. 1 of the FIFA Statutes, this decision may be appealed against before the Court of Arbitration for Sport (CAS) within 21 days of receipt of the notification of this decision.

NOTE RELATED TO THE PUBLICATION: FIFA may publish this decision. For reasons of confidentiality, FIFA may decide, at the request of a party within five days of the notification of the motivated decision, to publish an anonymised or a redacted version (cf. article 17 of the Procedural Rules Governing the Football

Tribunal).

CONTACT INFORMATION

Fédération Internationale de Football Association FIFA-Strasse 20 P.O. Box 8044 Zurich Switzerland www.fifa.com | legal.fifa.com | psdfifa@fifa.org | T: +41 (0)43 222 7777 pg. 11