TAS - CAS 4858 de 2016

Tribunal Arbitral du Sport Court of Arbitration for Sport Arbitration CAS 2016/A/4858 Delfino Pescara 1936 v. Envigado CF, award of 12 June 2017

Panel: Mr José Juan Pintó (Spain), Sole Arbitrator

Football Transfer Methods of interpretation of ambiguous contractual clauses Determination of the moment a contractual obligation to pay falls due Determination of the debt settled by an unspecified payment Non-excessive annual default interest rate for late payment

1. The interpretation of a contractual provision in accordance with article 18 of the Swiss Code of Obligations (SCO) aims at ascertaining the true common intentions

(consensus) the parties had when they concluded the contract. Where a factual consensus cannot be proven, the declarations of the parties must be interpreted pursuant to the principle of good faith in the sense in which they could and should have been understood, taking into account the wording, the context, as well as all circumstances.

2. According to article 102 SCO, where an obligation is due, the debtor is in default as soon as he receives a formal reminder from the creditor. Where a deadline for performance of the obligation has been set by agreement or as a result of a duly exercised right of termination reserved by one party, the debtor is automatically in default on expiry of the deadline.

3. According to article 87 SCO, when the debtor does not specify which of its debts it is paying to its creditor and the payment receipt does not indicate how the payment has been allocated, it is allocated to whichever debt is due or, if several are due, to the debt that first gave rise to enforcement proceedings against the debtor or, in the absence of such proceedings, to the debt that fell due first.

4. One party’s argument that the contractual interest rate to be applied to the outstanding sums it owes to its creditor is excessive is to be rejected if said parties’ agreement expressly recognised as valid and accepted the interest rate at stake and if the debtor has failed to prove the excessive nature of this rate in accordance with the applicable

law. Based on article 157 of the Swiss Penal Code, and taking into account the circumstances of a case and in particular the commercial nature of a contract as well as the value of the parties’ obligations, a CAS panel considered in a past case an annual default interest rate of 17% p.a. as being the maximum rate that can be granted without violating the Swiss public policy.

CAS 2016/A/4858 2

Delfino Pescara 1936 v. Envigado CF, award of 12 June 2017

I. PARTIES

1. Delfino Pescara 1936 (hereinafter the “Appellant” or “Pescara”) is an Italian football club with its registered seat in Pescara, Italy. It is affiliated with the Federazione Italiana Giuoco Calcio, which in turn is a member of the Fédération Internationale de Football Association (hereinafter “FIFA”).

2. Envigado CF (hereinafter the “Respondent” or “Envigado”) is a Colombian football club with its registered seat in Envigado, Colombia. It is affiliated with the Federación Colombiana de Fútbol, which is also a member of FIFA.

II. FACTUAL BACKGROUND

3. A summary of the most relevant facts and the background giving rise to the present dispute will be developed based on the parties’ written submissions, the evidence filed with these submissions, and the statements made by the parties and the evidence taken at the hearing held in the present case. Additional facts may be set out, where relevant, in connection with the legal discussion which follows. The Sole Arbitrator refers in this Award only to the submissions and evidence he considers necessary to explain his reasoning. The Sole Arbitrator, however, has considered all the factual allegations, legal arguments, and evidence submitted by the parties in the present proceedings.

4. On 2 March 2009, Envigado and the player J. (hereinafter the “Player”) entered into an employment agreement valid until 1 March 2012.

5. Furthermore, on 29 December 2011, Envigado and the Player entered into a new employment agreement which extended their relationship until 1 March 2015.

6. On the same 29 December 2011, Envigado transferred the Player on a loan basis to the Colombian club Atletico Nacional, S.A. (hereinafter “Nacional”). The corresponding loan agreement provided a purchase option in favour of Nacional on 75% of the economic rights of the Player.

7. In the summer transfer window of 2012, Pescara became interested in the Player’s services and, after negotiations among the three parties, Pescara sent to Envigado and Nacional a draft agreement which established, inter alia, the following conditions (hereinafter the “Accordo”): “(…) ACCORDO - Pescara acquista l diritti economici e federativi del calciatore J. (18/1/93) - Club Envigado F.C S.a cede l diritti di cui è titolare e Club Atletico Nacional rinuncia al diritti di cui è titolare alle seguenti condizioni: - Prezzo di vendita complessivo di 2,100,000.00 USD$ (per 80% diritti economici e 100% diritti federativi) CAS 2016/A/4858 3

Delfino Pescara 1936 v. Envigado CF, award of 12 June 2017 Il prezzo è comprensivo del diritti di formazione e indemnità; Il prezzo è comprensivo del diritto di partecipazione dal trasferimento por el Jugador Condiciones de pago: 750,000.00 USD entro 30/7/12 o comunque prima del rilascio del transfer - di cui: 400milla USD a Envigado e 350 milla USD ad Atletico Nacional 700,000.00 USD entro e non oltre il 15/1/2013

• di cui: 400milla USD a Envigado e 300 milla USD ad Atletico Nacional 650,000.00 entro 30/7/13 - Ad Atletico Nacional Il Pescara riconosce al Club Envigado F.C S.a il 20% sul prezzo di una futura vendita del calciatore ad altro club sulla pluzvalenza di 2,100,000” (emphasis added); Which can be freely translated into English as follows: “(…) AGREEMENT - Pescara acquires the economic and federative rights of the player J. (18/1/93) - Club Envigado F.C.S.a. sells the rights of which the club is the owner and Club Atletico Nacional renounces their rights on the following conditions; - Total sale price of 2,100,000 USD (for 80% of economic rights and 100% of federative rights) The price includes the rights for training compensation The price includes the right of participation in the transfer of the Player Payment conditions: 750,000.00 USD no later than 30/7/12 and in any event before the release of the transfer -of which: 400 thousand USD to Envigado and 350 thousand USD to Atletico Nacional 700,000.00 USD no later than 15/1/13 -of which: 400 thousand USD to Envigado and 300 thousand USD to Atletico Nacional 650,000.00 USD no later than 30/7/13 -to Atletico Nacional CAS 2016/A/4858 4

Delfino Pescara 1936 v. Envigado CF, award of 12 June 2017 Pescara recognizes to Club Envigado F.C.S.a. 20% on the price of a future sale of the football player to another club on the surplus of 2.100.000” (emphasis added).

8. Envigado signed the Accordo and sent it to Pescara, but before signing it crossed-out the

sentence “sulla pluzvalenza di 2,100,000” and added the sentence“20% neto de una venta futura”. The wording of the relevant clause reads as follows after the amendment carried out by Envigado: “Il Pescara riconosce al Club Envigado F.C S.a il 20% sul prezzo di una futura vendita del calciatore ad altro club sulla pluzvalenza di 2, 100,000 20% neto de una venta futura”. Which can be freely translated as follows: “Pescara recognizes to Club Envigado F.C.S.a. 20% on the price of a future sale of the football player to another club on the surplus of 2.100.000 20% net of a future sale”.

9. On 16 July 2012, Pescara, Envigado, Nacional and the Player signed a document titled “Acuerdo de Transferencia” (hereinafter the “Agreement”) which in its relevant parts, reads as follows

(emphasis added):

“CONSIDERANDO:

(A) Envigado es titular de los Derechos Federativos y Económicos del jugador y (…) Envigado es el único titular de su registro, de conformidad con las reglas de la Federación Colombiana de Fútbol y la FIFA. (…) (F) Pescara está interesado en adquirir los derechos federativos del jugador con Envigado y a negociar con Nacional la cesión de la opción de compra que tiene con el jugador según preacuerdo firmado entre las partes el día 13 de julio de 2012. Según lo anterior, se ACUERDA lo siguiente:

1. Nacional cede a Pescara el derecho de ejercer la opción de compra que tiene sobre el jugador, la cual es aceptada por Envigado FC.

2. Nacional, renuncia a ejercer la opción de compra sobre los derechos federativos y económicos del jugador

y cede el derecho de compra a Pescara a cambio de recibir la suma de US$ 1.300.000 dólares (un millón trescientos mil dólares americanos) como contraprestación.

3. Nacional autoriza a Envigado a efectuar la venta de los derechos federativos y económicos del jugador a Pescara. Para lo cual establecen una cifra de US$800.000 dólares (ochocientos mil dólares americanos) por los derechos federativos y el 80%

(Ochenta por ciento) de los derechos económicos, en este valor está incluido el CAS 2016/A/4858 5 Delfino Pescara 1936 v. Envigado CF, award of 12 June 2017 mecanismo de solidaridad. Envigado quedará con el 20% (veinte por ciento) de los derechos económicos del jugador para una futura venta. (…)

6. Pescara deberá pagar en total la suma de USD 2.100.000 (dos millones cien mil dólares) como única contrapartida de la transferencia y como un todo de la negociación, los cuales se distribuirán como se establece en los numerales 2, 3 y 7 del presente acuerdo.

7. El valor pactado por la transferencia será pagada en tres (3) cuotas de la siguiente forma: - Primera cuota: USD 750.000,00 a la firma del presente acuerdo y antes de la liberación del Certificado de Transferencia Internacional (CTI), la cual se estima que sea antes del 31 de julio de 2012. - Segunda cuota: USD 700.000,00 a más tardar el 15 de enero 2013. - Tercera cuota; USD 650.000,00 a más tardar el 30 de julio 2013.

(…)

Pescara se compromete a pagar independientemente a Nacional y Envigado (…) en las siguientes cuentas: (…)

ENVIGADO FUTBOL CLUB S.A.

Banco: (…)

(…)

Cuenta: (…) 9. (…) - Por otra parte, cualquier cantidad debida en virtud del presente Acuerdo estará sujeta a intereses de retraso a la tasa del 15% anual a partir de la fecha de incumplimiento. La obligación de pagar los intereses se reconoce expresamente por parte de Pescara como la tasa de interés válida y aceptable independientemente de los daños y perjuicios efectivamente causados a Nacional y Envigado por la demora y, además de los daños y perjuicios de los 50.000 euros previstos anteriormente. La aplicación de la tasa de interés es automática con cualquier monto diferido y no requiere ninguna acción por parte de Nacional y Envigado el fin de que sean aplicables.

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Delfino Pescara 1936 v. Envigado CF, award of 12 June 2017 (…)

12. Este Acuerdo incorpora y establece el acuerdo y el entendimiento de las partes y sustituye todos los anteriores acuerdos escritos o verbales, entendimientos o acuerdos relacionados con la materia objeto de este Acuerdo. El presente Acuerdo no se modificará, corregirá, alterará o completará, excepto por escrito por representantes debidamente autorizados de las partes del mismo.

13. Este acuerdo está sujeto a, y se regirá por las leyes y reglamentos de la FIFA en vigor de vez en cuando y además la ley de Suiza.

(…)

15. Este acuerdo se realiza en el Idioma Español. Si existe algún conflicto en el significado entre la

versión en Español de este Acuerdo y cualquier otra versión o traducción de este Acuerdo en cualquier otro idioma, la versión en Español prevalecerá y se considera exclusivamente predominante”. Which can be freely translated into English as follows:

“WHEREAS:

(A) Envigado is the holder of the federative and economic rights of the player and (…) Envigado is the only holder of his registration, in conformity with the rules of the Colombian Football Federation and FIFA. (…) (F) Pescara is interested in acquiring the federative rights of the player from Envigado and to negotiate with National the purchase option right that it has over the Player, as agreed in the pre-contract signed between the parties on 13 July 2012. According to the aforementioned, the following is AGREED:

1. Nacional assigns to Pescara the purchase option right that it has over the player, which is accepted by

Envigado FC.

2. Nacional waives its right to exercise the purchase option over the federative and economic rights of the player and transfers the purchase right to Pescara in exchange for US$ 1.300.000 dollars (one million three hundred thousand American dollars) as compensation.

3. Nacional authorizes Envigado to sell the federative and economic rights of the player to Pescara. For which they establish an amount of US $800.000 dollars

(eight hundred thousand American dollars) for the federative rights and the 80% (Eighty percent) of the economic rights, in which the solidarity mechanism is included. Envigado will retain 20% (twenty percent) of the economic rights of the player for a future sale.

CAS 2016/A/4858 7

Delfino Pescara 1936 v. Envigado CF, award of 12 June 2017 (…)

6. Pescara shall pay the total amount of USD 2.100.000 (two million one hundred thousand dollars) as unique compensation for the transfer and for the negotiation, which would be distributed as established

in the numerals 2, 3 and 7 of the present agreement.

7. The agreed transfer value shall be paid in (3) three installments in the following terms: - First installment: USD 750.000,00 at the moment of the signature of the present agreement and before the issuance of the International Transfer Certificate, which is estimated before 31 July 2012. - Second installment: USD 700.000 no later than 15 January 2013. - Third installment: USD 650,000.00 no later than 30 July 2013. (…) Pescara undertakes to pay independently to Nacional and Envigado (…) to the following bank accounts;

(…)

ENVIGADO FUTBOL CLUB S.A.

Bank: (…)

(…)

Account: (…) 9. (…) - On the other hand, any amount owed by virtue of the present Agreement will be subject to interests for late payment at the rate of 15% per year as from the date of the breach. The obligation regarding the payment of interests is expressly recognized by Pescara as a valid and acceptable interest rate independently of the damages effectively caused to Nacional and Envigado by the delay and, in addition to the 50.000 euros established above as damages. The application of the interest rate is automatic with any delayed payment and does not require any action from Nacional and Envigado to be applicable. (…) CAS 2016/A/4858 8

Delfino Pescara 1936 v. Envigado CF, award of 12 June 2017

12. This Agreement includes and establishes the agreements and understandings of the parties and substitutes all the previous verbal and written contracts, understandings or agreements related to the object of this Agreement. The present Agreement would not be modified, corrected, altered or added, except by the written consent of the representatives duly authorized by the parties.

13. This agreement is subject to, and will be ruled by, the FIFA regulations in

force from time to time and, additionally, Swiss law. (…)

15. This agreement is drafted in Spanish. If any conflict exists between the Spanish version of this Agreement and any other version or translation of this Agreement in any other language, the Spanish version shall prevail and shall be considered exclusively predominant”.

10. One year later, on 13 July 2013, Pescara transferred 50% of the Player’s economic rights to the Portuguese club FC Porto (hereinafter, “Porto”), in exchange of a fixed payment of EUR 5.000.000 payable in several instalments. Furthermore, the parties also agreed on an extra fee of EUR 4.500.000 subject to Porto’s decision to acquire the remaining 50% of the Player’s economic rights.

11. On 9 August 2013 Porto paid a first instalment of EUR 3.000.000 to Pescara1.

12. On 23 December 2013, Envigado requested from Pescara 20% of the compensation derived from the Player rights’ transfer to Porto.

13. On 8 January 2014, Pescara answered Envigado that the transfer to Porto “involved – so far – only 50% of the economic rights. The remaining 50% is conditioned upon the occurrence of certain events” and that Envigado should “[r]ecall that 20% is claimed to be calculated on the value of the sale less the amount already paid to the company for the purchase Envigado (Sic) (…) the balance of 50% is timetabled between January 2014 and July 2014” (emphasis added).

14. On 12 January 2014, the counsel of Envigado answered Pescara that according to the Accordo and to the Agreement “(…) it is evident that my client [Envigado] is entitled to receive 20% net of all amounts received out of the transfer of the player to a third club, in casu, FC Porto, as well

as that no deductions of any kind of the aforementioned entitlement of my client have been agreed between parties. (…) To my knowledge, Pescara received from FC Porto for the transfer of the player in question a first installment of EUR 3,000,000 in September 2013. Apparently, further partial payments have been made to Pescara by FC Porto recently or will be done in the near feature. (…). 1 This information has been taken from the FIFA decision object of this appeal and neither party has objected to it in these proceedings.

CAS 2016/A/4858 9

Delfino Pescara 1936 v. Envigado CF, award of 12 June 2017 Consequently, Pescara is kindly requested to transfer 20% net of all amounts it received from FC Porto up to today’s date (…)” (emphasis added).

15. On 28 February 2014, Envigado sent another communication to Pescara stating that “(…) Envigado FC is entitled to receive 20% of the amounts Pescara FC received and will receive from FC Porto for the transfer of the player J.” (emphasis added).

16. On 2 March 2014 Porto paid to Pescara the amount of EUR 500.0002.

17. On 6 April 2014 Porto paid to Pescara the amount of EUR 500.0003.

18. On 20 June 2014, after not having received any answer from Pescara, Envigado’s counsel sent a further communication to propose a meeting in Italy in order to settle the matter amicably and warned that if the matter was not settled amicably, it would have no other alternative but to claim the amount of EUR 1.000.000 plus interest against Pescara before FIFA.

19. On 30 June 2014, Envigado’s counsel traveled to Rome for a meeting with some representatives of Pescara; however, no settlement was reached.

20. On 31 July 2014, Porto issued an invoice to Pescara requesting the payment of EUR 138.500 in concept of “solidarity mechanism” derived from the Player’s transfer.

21. On 4 August 2014 Porto paid to Pescara the amount of EUR 1.000.0004.

III. PROCEEDINGS BEFORE THE FIFA’S PLAYERS’ STATUS COMMITTEE

22. On 7 August 2014, Envigado lodged a claim against Pescara before the FIFA Players’ Status Committee (hereinafter “FIFA PSC”) requesting EUR 1.000.000 (20% of EUR 5.000.000 derived from the sale of 50% of the Player’s economic rights to Porto) plus interest at the rate of 15% p.a. as from the dates Pescara received the transfer price payments from Porto.

Furthermore, Envigado requested that Pescara should pay “20% net of all future economic benefits it received from FC Porto in connection with any kind of the transaction related to the player J”.

23. On 10 August 2015, Envigado informed the FIFA PSC that Porto had paid the additional amount of EUR 4.500.000 for the remaining 50% of the Player’s economic rights and, consequently, modified its claim by also requesting 20% of such amount. 2 Idem footnote 1. 3 Idem footnote 1. 4 Idem footnote 1.

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Delfino Pescara 1936 v. Envigado CF, award of 12 June 2017

24. On 26 April 2016, the Single Judge of the FIFA PSC partially accepted Envigado’s claim and ordered Pescara to pay the amount of EUR 1.900.000 plus 15% interest p.a. The operative part of this decision (hereinafter, the “Appealed Decision”) reads in the pertinent part as follows:

“(…)

1. The claim of the Claimant, Envigado FC, is partially accepted.

2. The Respondent, Delfino Pescara 1936, has to pay to the Claimant, Envigado FC, within 30 days as from the date of notification of this decision, the amount of EUR 1,900,000, plus 15% interest p.a. as follows: - on the amount of EUR 600,000 as of 9 August 2013; - on the amount of EUR 100,000 as of 2 March 2014; - on the amount of EUR 100,000 as of 6 April 2014; - on the amount of EUR 200,000 as of 4 August 2014; - on the amount of EUR 900,000 as of 10 August 2015;

3. If the aforementioned sum, plus interests as established above, are not paid within the aforementioned deadline, the present matter shall be submitted, upon request, to the FIFA’s Disciplinary Committee for consideration and a formal decision.

4. Any further claims lodged by the Claimant, Envigado CF, are rejected.

5. The final amount of costs of the proceedings in the amount of CHF 18,000 are to be paid by the Respondent, Delfino Pescara 1936, within 30 days of notification of the present decision as follows: 5.1 The amount of CHF 13,000 to FIFA to the following bank account with reference to case nr. 14-01524/itr: (…) 5.2 The amount of CHF 5,000 to the Claimant, Envigado CF.

6. The Claimant, Envigado FC, is directed to inform the Respondent, Delfino Pescara 1936, immediately and directly of the account number to which the remittance under points 2. and 5.2 are to be made and to notify the Players’ Status Committee of every payment received”.

25. On 24 May 2016, the FIFA PSC notified the operative part of the Appealed Decision to the

parties.

26. On 24 June 2016, before receiving the grounds of the Appealed Decision, Envigado and Pescara entered into a “Memorandum of Understanding” (hereinafter, the “MoU”) in which Pescara accepted to pay the amount of EUR 1.500.000 in five instalments but without recognizing the correctness of the Appealed Decision and with the right to appeal against it before the Court of Arbitration for Sport. Envigado, on its part, insisted on the confirmation of the full amounts provided in the Appealed Decision and instructed Pescara that the payments should be made CAS 2016/A/4858 11

Delfino Pescara 1936 v. Envigado CF, award of 12 June 2017 to the bank account of its lawyer. The relevant clauses of the MoU read as follows (emphasis added): “(…) 1) Pescara is ready to proceed with the payment of the following amounts as transfer fee for the player J. EUR 300,000 within and no later than 1 July 2016; EUR 300,000 within and no later than 1 August 2016; EUR 300,000 within and no later than 1 September 2016; EUR 300,000 within and no later than 1 October 2016; EUR 300,000 within and no later than 1 November 2016; Envigado expressly instructs and authorizes Pescara to proceed with the payment of the transfer fee to the bank account of the attorney-at-law of Envigado indicated below and it will indemnify and hold Pescara harmless of any consequences and/or any claims of third parties, for any title whatsoever, arising from the payment of the transfer fee being executed to the bank account of the attorney-at-law of Envigado.

Bank: (…)

Account: (…) Beneficiary: MS Entertainment Law, Melanie Schärer, attorney-at-law. 2) The aforementioned payments are no recognition of any kind by any party, since both, Pescara and

Envigado wish to continue with the pending dispute. In particular, Envigado insists on the confirmation of the decision taken by Single Judge of the Players’ Status Committee on 26 de April 2016, while Pescara declared to appeal the referred decision at the Court for Arbitration of Sports (CAS), once FIFA will notify the parties the grounds of the aforementioned decision. 3) Consequently, any payment executed by Pescara in accordance with this Memorandum of Understanding are not corresponding to a settlement agreement by the parties. The parties will go and wait for a final and binding decision of FIFA or CAS. Therefore, Pescara expressly reserves the right to claim back any amounts paid to Envigado but not considered due to Envigado in the relevant CAS award”.

27. Pescara paid Envigado the first three instalments provided in the MoU on 6 July 2016, 1 August 2016 and 2 September 2016, respectively. However, Pescara failed to pay the last two instalments in due time (see infra, para.44).

28. On 21 October 2016, the FIFA PSC notified the grounds of the Appealed Decision to the parties. These grounds can be briefly summarized as follows: CAS 2016/A/4858 12

Delfino Pescara 1936 v. Envigado CF, award of 12 June 2017 - According to the Agreement, Pescara accepted to pay Envigado the amount of USD 800.000 for the Player’s transfer as well as 20% of a potential subsequent transfer. Furthermore, clause 12 of the Agreement clearly stipulated that this Agreement replaced all previous written or verbal agreements between the parties. - In accordance with the legal principle pacta sunt servanda, Pescara has to pay the total sum of EUR 1.900.000, i.e. 20% of the EUR 9.500.000 that Pescara received from Porto plus interest. - The interest rate of 15% p.a. stipulated by the parties in the Agreement is not excessive

according to the longstanding jurisprudence of the FIFA PSC.

IV. PROCEEDINGS BEFORE THE COURT OF ARBITRATION FOR SPORT

29. On 11 November 2016, in accordance with Article R47 et seq. of the Code of Sports-Related Arbitration (the “Code”), the Appellant filed the relevant Statement of Appeal before the Court of Arbitration for Sport (“CAS”) against the Appealed Decision. In its statement, the Appellant

requested that the CAS: “(…) 1) Declare the present appeal admissible 2) Set aside the decision of the Single Judge of the FIFA Players’ Status Committee under appeal 3) Decide that the percentage of the future transfer due to Respondent shall be calculated on the basis of the net surplus received by Appellant for the transfer of the player J. 4) Decide that Appellant has no payment obligation towards Respondent beyond the amounts indicated in the memorandum of understanding signed between the parties 5) Decide that Respondent is liable to pay to FIFA costs of the proceedings before the FIFA Players’ Status Committee 6) Decide that Respondent is liable to compensate to Appellant the legal costs incurred by Appellant in the proceedings before the FIFA Players’ Status Committee 7) Award any further or other relief to Appellant as the Panel deems fit 8) Decide that Respondent must bear all the costs of the present arbitration 9) Decide that Respondent must compensate Appellant for the legal costs incurred in the present proceedings 10) Decide that any amount payable by Respondent to Appellant shall be subject to interest for late payments at the applicable rate from the date on which the amount become due”.

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Delfino Pescara 1936 v. Envigado CF, award of 12 June 2017

30. On 25 November 2016, the Appellant filed its Appeal Brief with the following requests for

relief: “(…) 1) Set aside the decision of the Single Judge of the FIFA Players’ Status Committee under appeal 2) Decide that the percentage due to Respondent for the future transfer of J. shall be calculated on the basis

of the net surplus received by Appellant 3) Decide that Appellant has no payment obligation towards Respondent beyond the amounts indicated in the memorandum of understanding signed between the parties 4) Decide that the decision of the Single Judge regarding interests is erroneous and must be modified in accordance with what has been presented above 5) Decide that Respondent is liable to pay to FIFA costs of the proceedings before the FIFA Players’ Status Committee 6) Decide that Respondent is liable to compensate to Appellant the legal costs incurred by Appellant in the proceedings before the FIFA Players’ Status Committee 7) Award any further or other relief to appellant as the Panel deems fit 8) Decide that Respondent must bear all the costs of the present arbitration 9) Decide that Respondent must compensate Appellant for the legal costs incurred in the present proceedings”.

31. On 29 November 2016, the parties were informed that the President of the Appeals Arbitration Division had nominated Mr José Juan Pintó as Sole Arbitrator to hear the present appeal. The parties were also informed that Mr Pintó had accepted his nomination, but wished to disclose certain information.

32. On 18 December 2016, the Respondent filed its Answer to the Appeal, requesting the CAS: “(…) 1) To reject the Appellant’s appeal of the decision passed by the Single Judge of the Players’ Status Committee

(PSC) in the meeting in Zurich, Switzerland, on 26 April 2016, and to confirm the challenged decision. 2) To order the Appellant to bear all the costs incurred through the present procedure, as well as all legal costs incurred by the Respondent”.

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Delfino Pescara 1936 v. Envigado CF, award of 12 June 2017

33. On 21 December 2016, the CAS Court Office informed the parties that they were no longer authorized to supplement or amend their requests or their arguments, produce new exhibits, or specify further evidence on which they intended to rely.

34. On 10 January 2017, the CAS Finance Director informed the parties that it had been informed by its bank that the payment of the advance of costs made by the Appellant had been rejected and returned to the Appellant. The CAS Finance Director enclosed the letter from the bank in question (hereinafter, the “Bank Letter”). The Bank Letter, inter alia, read as follows: “(…) Le paiement suivant a été transféré en votre faveur: (…) Motif du paiement (si disponible) : CAS 2016/A/4858 DELFINO PESCARA 1936 V.

ENVIGADO CF (…).

En tant que banque internationale, le Crédit Suisse s’engage à respecter un grand nombre de lois locales. Pour ce faire, le Crédit Suisse tient compte notamment des sanctions de la Suisse, de l’Union européenne, des États-Unis d’Amérique et de l’Organisation des Nations Unies qui interdisent certaines transa