TAS - CAS 6809, 6843 de 2020

Tribunal Arbitral du Sport Court of Arbitration for Sport Arbitrations CAS 2020/A/6809 Deportivo Popular Junior FC v. Clube Atlético Mineiro & CAS 2020/A/6843 Clube Atlético Mineiro v. Deportivo Popular Junior FC, award of 28 June 2021

Panel: Mr José Juan Pinto (Spain), President; Mr Alexander McLin (Switzerland); Mr Francisco

Müssnich (Brazil) Football Transfer with acceleration and penalty clauses Validity of a penalty clause Types of penalty clauses Duty to reduce excessive penalty clauses Unreasonableness of a penalty clause Criteria to consider a penalty clause excessive Amount of the penalty Interest rate Amout to which the interest is applicable

1. A penalty clause contained in a contract shall be considered as valid and applicable under Swiss law if it contains all the necessary elements required for such purpose: a) the parties bound thereby are mentioned, b) the kind of penalty has been determined, c) the conditions triggering the obligation to pay it are set, and d) its measure is identified.

2. Under Swiss law, a penalty clause can be agreed for the event of non-performance or defective performance of a contract (Article 160 par. 1 of the Swiss Code of Obligations, CO). In such situation, the penalty clause must be considered “exclusive”; this means that the creditor must choose between compelling the performance and claiming the penalty. On the contrary, a penalty can be set for the event of failure to comply with the stipulated time or place of performance (Article 160 par. 2 Swiss CO). In such situation, the penalty is “cumulative”, which means that the creditor might claim the penalty in addition to performance, provided he has not expressly waived such right or accepted performance without reservation. In such case, the creditor might as well ask for the default interest. When the parties have not expressly specified the kind of clause they intended to stipulate, the nature of the penalty depends on the nature and meaning of

the main obligation that is guaranteed. The burden of proof of the “cumulative” nature of the clause falls upon the creditor.

3. The Swiss legislator has enacted a limitation to the contractual freedom to determine the amount of the penalty clause by establishing in Article 163 par. 3 of the Swiss CO that the judicial body analysing the case shall reduce penalties that are considered excessive at its discretion in order to warrant the public order and the principle of proportionality as standard in Swiss law. The word “shall” undoubtedly implies the CAS 2020/A/6809 2

Deportivo Popular Junior FC v. Clube Atlético Mineiro

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Clube Atlético Mineiro v. Deportivo Popular Junior FC, award of 28 June 2021 mandatory nature of the judicial body’s duty to reduce penalties that are considered as excessive, and the inabilities of the parties to depart from its determination.

4. A penalty is considered abusive when its amount is unreasonable and clearly exceeds the admissible amount in consideration of the principles of justice and equity. This disproportion must significantly exceed the limits of what appears to be normal in light of all circumstances, i.e. it is unreasonable to an extent which cannot be justified. As the possibility of a reduction affects the contractual freedom of the parties, the reduction of a penalty clause shall only be reserved for exceptional cases. The judge shall not reduce the penalty too easily and therefore the principle of contractual liberty always has the privilege in case of doubt. In this regard, penalty fees may not be deemed automatically as abusive just because they exceed the costs of damages suffered by the creditor, as the penalty clauses as such, normally include a punitive aspect that implies that the penalty amount does not have to exactly meet the amount of the damage.

5. Several criteria define what an abusive amount is. The creditor’s interest, the seriousness of the breach of the contract and the debtor’s intentional failure, along with the financial situation of both parties, are determinant. The economic dependence of

the debtor, the disproportion between the damage and the penalty, the debtor’s professional background and not only the damage actually produced but also the risk of damage to which the creditor was exposed are also to be considered relevant when analysing the proportionality of a penalty clause. These criteria shall not be considered as a numerus clausus and a judicial body must not decide in an abstract manner, but on the contrary a balance of interests is required to decide whether a penalty is abusive or not in each case.

6. If a penalty amount is essentially preventive and not only punitive or compensatory, it must be more important than the damages which might be granted. It shall also be taken into account that the more severe the debtor’s fault is, the less the penalty might be reduced.

7. It is the common practice, not only in sports law but generally in contractual law, to calculate interest on an annual basis. The Parties are free to negotiate a higher amount of interest as the default interest of 5% per annum contemplated for in Article 104 par.1 of the Swiss CO. However, this contractual freedom is not unlimited as the outcome would have to remain compatible with Swiss law when applicable. In this regard, interest rates under 18% are considered to be in line with the maximum level of interest applicable under Swiss law.

8. The interest rate is applicable solely to the outstanding amount owed but not to the penalty, as the main aim of an interest rate is to compensate the delay in the fulfilment of the contractual obligations.

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Deportivo Popular Junior FC v. Clube Atlético Mineiro

CAS 2020/A/6843

Clube Atlético Mineiro v. Deportivo Popular Junior FC, award of 28 June 2021

I. THE PARTIES

1. Deportivo Popular Junior FC (the “Appellant” or “Junior”) is a Colombian professional football club with its registered office in Barranquilla, Colombia. Junior is affiliated to the

Colombian Football Association (Federación Colombiana de Fútbol), which in turn is affiliated to the Fédération Internationale de Football Association (“FIFA”).

2. Clube Atlético Mineiro (the “Respondent”, “Mineiro”, or “CAM”), is a Brazilian football club with its registered office in Belo Horizonte, Brazil. Mineiro is affiliated to the Brazilian Football Confederation (Confederação Brasileira de Futebol), which in turn is affiliated to 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 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 Panel refers in the present Award only to the submissions and evidence it considers necessary to explain its reasoning. The Panel, however, has considered all the factual allegations, legal arguments and evidence submitted by the Parties in the present proceedings.

4. On 9 June 2018, Junior and Mineiro signed a transfer agreement (the “Transfer Agreement”) providing for the terms and conditions of the transfer of the Colombian player A. (the

“Player”).

5. Clause 3 of the Transfer Agreement set the financial conditions of said transfer. In particular, it provided for the obligation of Mineiro to pay Junior the amount of USD 6.000.000 in five instalments: - USD 2.000.000 on 15 June 2018; - USD 1.000.000 on 10 July 2018; - USD 1.000.000 on 30 October 2018; - USD 1.000.000 on 30 January 2019; and - USD 1.000.000 by 30 April 2019.

6. Moreover, the Parties agreed to include a sell-on clause by virtue of which if Mineiro received

an offer to purchase 100% of the player's federative and economic rights and the Player was transferred to a third club, Junior would receive 30% of the agreed transfer fee. The Parties also agreed to include an acceleration, interest and penalty clause in the terms set out below. The most relevant parts of the Transfer Agreement read as follows: “[…] CAS 2020/A/6809 4 Deportivo Popular Junior FC v. Clube Atlético Mineiro

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Clube Atlético Mineiro v. Deportivo Popular Junior FC, award of 28 June 2021

PRIMERA. - OBJETO: EL CEDENTE, como titular de los derechos federativos y económicos del JUGADOR, transferirá al CESIONARIO tales derechos a partir del día diez (10) de julio del año 2018, siempre y cuando en esa fecha JUNIOR haya recibido a su entera satisfacción las cuotas del precio reguladas en los numerales 3.1 y 3.2 de la Cláusula Tercera de este Convenio. Cumplidas esas condiciones suspensivas, el CEDENTE realizará todas las actuaciones necesarias conforme a la reglamentación vigente, para tramitar el certificado de transferencia internacional (CTI) del JUGADOR a favor del CESIONARIO por medio del ingreso de los datos correspondientes al Transfer Matching System (TMS) de la Federación Internacional de Fútbol Asociación (FIFA). Es entendido que ninguna de las partes dará inicio a éste proceso sin el cumplimiento previo de las condiciones suspensivas establecidas en este Convenio. - […] TERCERA. - VALOR DE LA TRANSFERENCIA: El valor de la Transferencia Definitiva objeto de este Convenio se pacta en la suma completa, sin deducción alguna, de SEIS MILLONES DE

DÓLARES DE LOS ESTADOS UNIDOS DE AMÉRICA (USD 6.000.000), suma de dinero que el CESIONARIO pagará al CEDENTE así: 3.1 La suma completa de DOS MILLONES DE DÓLARES DE LOS ESTADOS UNIDOS DE AMÉRICA (USD 2.000.000[sic.]0), libres de cualesquiera deducciones, pagaderos mediante transferencia bancaria electrónica de dinero, así: […]. Esta cuota del precia la pagará el CESIONARIO al CEDENTE en la forma indicada, a más tardar el quince (15) de junio de 2018, siempre y cuando el JUGADOR apruebe la revisión médica […] 3.2 La suma completa de UN MILLÓN DE DÓLARES DE LOS ESTADOS UNIDOS DE AMÉRICA (USD 1.000.000[sic.]0) el diez (10) de julio de 2018, libres de cualesquiera deducciones, pagaderos mediante transferencia bancaria electrónica de dinero, así: […]. El pago se entenderá realizado cuando el CEDENTE informe al CESIONARIO del recibo efectivo del dinero. El incumplimiento a este pago releva de manera inmediata al CEDENTE de cualesquiera obligaciones a su cargo contenidas en el presente documento, y lo faculta para ejercer todos los derechos que tenga para procurar el cumplimiento o terminación del Convenio, y además procurar el resarcimiento de perjuicios y el cobro de penalidades. 3.3 La suma completa de UN MILLÓN DE DÓLARES DE LOS ESTADOS UNIDOS DE AMÉRICA (USD 1.000.000[sic.]0) el treinta (30) de octubre de 2018, libres de cualesquiera deducciones, pagaderos mediante transferencia bancaria electrónica de dinero, así: […]. El pago se entenderá realizado

cuando el CEDENTE informe al CESIONARIO del recibo efectivo del dinero. El incumplimiento a este pago releva de manera inmediata al CEDENTE de cualesquiera obligaciones a su cargo contenidas en el presente documento, y lo faculta para ejercer todos los derechos que tenga para procurar el cumplimiento o terminación del Convenio, y además procurar el resarcimiento de perjuicios y el cobro de penalidades. 3.4 La suma completa de UN MILLÓN DE DÓLARES DE LOS ESTADOS UNIDOS DE AMÉRICA (USD 1.000.000[sic.]0) el treinta (30) de enero de 2019, libres de cualesquiera deducciones, pagaderos mediante transferencia bancaria electrónica de dinero, así: […]. El pago se entenderá realizado CAS 2020/A/6809 5 Deportivo Popular Junior FC v. Clube Atlético Mineiro

CAS 2020/A/6843

Clube Atlético Mineiro v. Deportivo Popular Junior FC, award of 28 June 2021 cuando el CEDENTE informe al CESIONARIO del recibo efectivo del dinero. El incumplimiento a este pago releva de manera inmediata al CEDENTE de cualesquiera obligaciones a su cargo contenidas en el presente documento, y lo faculta para ejercer todos los derechos que tenga para procurar el cumplimiento o terminación del Convenio, y además procurar el resarcimiento de perjuicios y el cobro de penalidades. 3.5 La suma completa de UN MILLÓN DE DÓLARES DE LOS ESTADOS UNIDOS DE AMÉRICA (USD 1.000.000[sic.]0) el treinta (30) de abril de 2019, libres de cualesquiera deducciones, pagaderos mediante transferencia bancaria electrónica de dinero, así: […]. El pago se entenderá realizado

cuando el CEDENTE informe al CESIONARIO del recibo efectivo del dinero. El incumplimiento a este pago releva de manera inmediata al CEDENTE de cualesquiera obligaciones a su cargo contenidas en el presente documento, y lo faculta para ejercer todos los derechos que tenga para procurar el cumplimiento o terminación del Convenio, y además procurar el resarcimiento de perjuicios y el cobro de penalidades.

PARÁGRAFO: Un retraso superior a treinta (30) días en el pago oportuno y completo de cualquiera de las cuotas del precio sometidas a plazo, causará en favor del CEDENTE y a cargo del CESIONARIO: (i) Intereses moratorias del 15% sobre saldo insoluto; (ii) Aceleración inmediata del plazo de las restantes cuotas, que se considerarán por tanto como vencidas y en mora, dando lugar a la exigibilidad del saldo del precio; (iii) Penalidad especial equivalente al doble del valor de cada cuota del precio vencida e impagada. El presente documento presta mérito ejecutivo para el cobre de las obligaciones en él contenidas a cargo del CESIONARIO y en favor del CEDENTE, ante los mismos organismos competentes. - CUARTA. - PARTICIPACIÓN EN FUTURAS TRANSFERENCIAS: además de la cantidad prevista en la Cláusula Tercera, el CESIONARIO, como parte del pago de la transacción contenida en este Convenio, transfiere de forma irrevocable, ilimitada e incondicional al CEDENTE una participación equivalente al treinta por ciento (30%) de todas las sumas que recibirá el CESIONARIO en relación con futuras transferencias temporales o definitivas del JUGADOR a clubes terceros. […] NOVENA. - DOMICILIO Y SOLUCIÓN DE CONFLICTOS: El órgano única y exclusivamente

competente para tratar cualquier disputa en relación con el presente Convenio es la Comisión del Estatuto del Jugador de la FIFA”. Free translation into English as follows: “[…] OBJECT: THE ASSIGNOR, as holder of the federative and economic rights of the PLAYER, shall transfer such rights to the ASSIGNEE as from the tenth (10th) of July 2018, provided that on that date JUNIOR has received to its full satisfaction the instalments regulated in numerals 3.1 and 3.2 of Clause Three of this Agreement. Once these suspensive conditions have been fulfilled, the ASSIGNOR shall take all the necessary steps in accordance with the regulations in force to process the PLAYER's international transfer certificate (ITC) in favour of the ASSIGNEE by entering the data corresponding to the Transfer Matching System (TMS) of the International Fédération of Association Football CAS 2020/A/6809 6 Deportivo Popular Junior FC v. Clube Atlético Mineiro

CAS 2020/A/6843

Clube Atlético Mineiro v. Deportivo Popular Junior FC, award of 28 June 2021 (FIFA). It is understood that none of the parties will initiate this process without prior compliance with the suspensive conditions established in this Agreement. […] THIRD - VALUE OF THE TRANSFER: The value of the Final Transfer, which is the object of this Agreement, is agreed in the full amount, without any deduction, of SIX MILLION UNITED STATES DOLLARS (USD 6,000,000), which the ASSIGNEE will pay to the ASSIGNOR in the following way: 3.1 The full amount of TWO MILLION UNITED STATES DOLLARS (USD 2,000,000 [sic]), free of any deductions, payable by means of a bank electronic transfer as follows: […]. This instalment shall be paid by the assignee to the assignor in the manner indicated, no later than

fifteen (15) June 2018, provided that the PLAYER approves the medical examination. […] 3.2 The full amount of ONE MILLION UNITED STATES DOLLARS (USD 1,000,000 [sic]) on the tenth day of July 2018, free of any deductions, payable by means of a bank electronic transfer, as follows: […]. The payment shall be considered done when the ASSIGNOR informs the ASSIGNEE of the actual receipt of the instalment. Failure to make this payment immediately relieves the ASSIGNOR of any obligations under this document and entitles him to exercise all rights he has to seek compliance or termination of the Agreement, and also to seek compensation for damages and the collection of penalties. 3.3 The full amount of ONE MILLION UNITED STATES DOLLARS (USD 1,000,000[sic]) on the thirty of October 2018, free of any deductions, payable by means of a bank electronic transfer, as follows: […]. The payment shall be considered done when the ASSIGNOR informs the ASSIGNEE of the actual receipt of the instalment. Failure to make this payment immediately relieves the ASSIGNOR of any obligations under this document and entitles him to exercise all rights he has to seek compliance or termination of the Agreement, and also to seek compensation for damages and the collection of penalties. 3.4 The full amount of ONE MILLION UNITED STATES DOLLARS (USD 1,000,000[sic]) on the thirty of October 2019, free of any deductions, payable by means of a bank electronic transfer, as follows: […]. The payment shall be considered done when the ASSIGNOR informs the ASSIGNEE of the actual receipt of the instalment. Failure to make this payment immediately relieves the ASSIGNOR of any obligations under this document and entitles him to exercise all rights he has to seek compliance or termination of the Agreement, and also to seek compensation for damages and the collection of penalties.

3.5 The full amount of ONE MILLION UNITED STATES DOLLARS (USD 1,000,000[sic]) on the thirty of April 2018, free of any deductions, payable by means of a bank electronic transfer, as follows: […]. The payment shall be considered done when the ASSIGNOR informs the ASSIGNEE of the actual receipt of the instalment. Failure to make this payment immediately relieves the ASSIGNOR of any obligations under this document and entitles him to exercise all rights he has to seek CAS 2020/A/6809 7 Deportivo Popular Junior FC v. Clube Atlético Mineiro

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Clube Atlético Mineiro v. Deportivo Popular Junior FC, award of 28 June 2021 compliance or termination of the Agreement, and also to seek compensation for damages and the collection of penalties.

PARAGRAPH: A delay of more than thirty (30) days in the timely and full payment of any of the instalments abovementioned, shall cause in favour of the ASSIGNOR and at the expense of the ASSIGNEE: (i) Delay interest of 15% on the amount unpaid; (ii) Immediate acceleration of the term of the remaining instalments, which shall therefore be considered as overdue and in arrears, giving rise to the enforceability of the price balance; (iii) Special penalty equivalent to twice the value of each price instalment due and unpaid. The present document is enforceable for the collection of the obligations contained in it by the ASSIGNEE and in favour of the ASSIGNOR, before the competent bodies.

FOURTH - PARTICIPATION IN FUTURE TRANSFERS: in addition to the amount provided for in Clause Three, the ASSIGNOR, as part of the payment for the transaction contained in this Agreement, irrevocably, unlimitedly and unconditionally shall transfer to the ASSIGNEE a share equivalent to thirty percent (30%) of all sums received by the ASSIGNOR in relation to any future temporary or definitive transfer

of the PLAYER to any third club. […] NINTH - ADDRESS AND DISPUTE RESOLUTION: The sole and exclusive body competent to deal with any dispute in relation to this Agreement is the FIFA Players' Status Committee”.

7. On 15 June 2018, Mineiro paid Junior USD 2,000,000, corresponding to the first instalment agreed in the Transfer Agreement.

8. On 10 July 2018, Mineiro paid Junior USD 1,000,000, corresponding to the second instalment agreed in the Transfer Agreement.

9. On 30 October 2018, Mineiro did not comply with the payment obligation established for that date in the Transfer Agreement.

10. On 14 November 2018, Junior, in view of the non-payment of this third instalment, sent an e-mail to Mineiro requesting the payment of said instalment before the end of the agreed 30day grace period.

11. On 15 November 2018, Mineiro answered to Junior in the following terms: “[…] Hace un par de días nos reunimos con D. Juan Pablo Pachón y le explicamos a él nuestras dificultades de flujo de caja, así como le transmitimos nuestras sinceras disculpas por el inconveniente, Ojalá tengan Uds. recibido la información y las disculpas. […] Ha sido una temporada de eliminaciones inesperadas y muy antes de lo que habíamos planeado, lo que nos llevó al recibimiento de montos considerablemente menores do que esperábamos y al incumplimiento de algunas obligaciones de orden financiera. […] CAS 2020/A/6809 8

Deportivo Popular Junior FC v. Clube Atlético Mineiro

CAS 2020/A/6843

Clube Atlético Mineiro v. Deportivo Popular Junior FC, award of 28 June 2021 Tal vez sea oportuno empezar desde ya a pensar juntos acerca de una composición para toda la deuda restante

(US$ 3 millones), con un número más grande de parcelas y extensión de los plazos. Por favor nos diga que les parece la posibilidad de arreglar un nuevo plan de pagos, de manera con que podamos pagarles lo más pronto posible, pero dentro de las nuevas posibilidades económicas y financieras”. Free translation into English as follows: “[…] A couple of days ago we met with Mr. Juan Pablo Pachón and we explained to him our cash flow difficulties, as well as we convey our sincere apologies for the inconvenience, I hope you have received the information and the apologies. […] It has been a season of unexpected eliminations and much earlier than we had planned, which led us to recover considerably less amounts than we expected and to breach some financial obligations. […] Perhaps it is appropriate to start thinking together about a new payment structure for the remaining debt (US $ 3 million), with a larger number of instalments and extension of the terms. Please let us know what you think about the possibility of arranging a new payment plan, so that we can pay you as soon as possible, but within our new economic and financial possibilities”.

12. On 16 November 2018, Junior answered the letter sent by Mineiro on 15 November 2018 rejecting the option of establishing an additional payment plan in the following terms: “[…] Las condiciones de la transferencia mencionada fueron acordadas entre las partes luego de tratativas preliminares, y se acordaron en los términos que están contenidos en el documento suscrito el 9 de junio de 2018.

Lamentamos las circunstancias que exponen en su carta, pero igualmente les informamos que Junior FC S.A. programó compromisos tanto de funcionamiento como de atención a obligaciones contando con los pagos acordados por la transferencia que nos ocupa, completos y oportunos.

No recibir los pagos en la cantidad y fecha convenidas genera evidentes perjuicios a Junior FC S.A., sociedad que no está en condiciones de modificar la forma de pago ya establecida. Por lo tanto, y sin menoscabo del ejercicio de los derechos de Junior FC, S.A. a recibir el precio en la forma y oportunidades convenidas, así como de los derechos de Junior FC, S.A. a intereses, penalidades, perjuicios y aceleración del plazo de las cuotas restantes, los invitamos a honrar el compromiso adquirido, reiterando nuestra comunicación anterior de cobro”. Free translated into English as follows: “[…] The conditions of the aforementioned transfer were agreed between the parties after preliminary negotiations, and were agreed in the terms that are contained in the transfer agreement signed on June 9, 2018.

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Clube Atlético Mineiro v. Deportivo Popular Junior FC, award of 28 June 2021 We regret the circumstances exposed in your letter, but we also inform you that Junior FC S.A. scheduled commitments for both operational and payment obligations, taking into account the payments agreed and that had to be received in timely manner regarding this transfer. Failure to receive said payments in the amount and on the agreed date generates obvious damages to Junior FC S.A., a company that is not in a position to modify the already established payment plan. Therefore, and without prejudice to the exercise of the rights of Junior FC, S.A. to receive the price as it was agreed, as well as Junior FC, S.A. rights to request the corresponding interests, penalties, damages and acceleration of the term of the remaining installments, we invite you to honor the commitment acquired, reiterating our previous communication of collection”.

13. On 1 December 2018, the grace-period established in the Transfer Agreement in the event of

non-payment was met without Mineiro making the corresponding payment.

14. On 7 December 2018, Junior sent a last letter to Mineiro, that remained unanswered, with the following terms: “[…] On account of the aforementioned and since the third instalment of USD 1.000.000 remained outstanding for more than 30 days, the three aforementioned legal consequences apply in the case at hand, which means the following: Firstly, since according to point ii. of the aforementioned cited contractual clause all remaining instalments (i.e. the third, fourth and fifth instalment of USD 1.000.000 each) will be considered immediately overdue and in arrears, the immediate outstanding balance or price is of USD 3.000.000. Secondly, over the said price balance of USD 3.000.000 default interest of 15% apply. Thirdly, a penalty must be paid equal to the double of the value of each overdue an unpaid instalment of the price, which is 2x USD 3.000.000 = USD 6.000.000.

On account of the above, I kindly ask you to proceed to the payment of 1. the transfer price balance of USD 3.000.000 plus 15% of default interest over the said amount; plus 2. the penalty of USD 6.000.000, all until 18 December 2018 at the latest and to the following bank account: […]” (emphasis omitted).

III. PROCEEDINGS BEFORE THE FIFA PLAYERS’ STATUS COMMITTEE

15. On 1 January 2019, Junior lodged a claim against Mineiro before the Player’s Status Committee of FIFA (the “PSC FIFA”), requesting inter alia the following: • USD 3.000.000 as outstanding transfer amount; • USD 6.000.000 as penalty fee (cf. the penalty clause); CAS 2020/A/6809 10

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Clube Atlético Mineiro v. Deportivo Popular Junior FC,

award of 28 June 2021 • 15% (alternatively 5%) per year over the outstanding transfer fee of USD 3.000.000 and over the penalty fee of USD 6.000.000 (alternatively only over the outstanding transfer compensation), as of 19 December 2018 (one day after expiration of the deadline given in the correspondence sent to CAM on 7/12/2018) until the date of effective payment. • Procedural cost shall be borne by CAM.

16. Mineiro answered to the claim requesting its complete rejection or alternatively to partially accept the claim by ordering the payment of USD 3.000.000 corresponding to the third, fourth and fifth instalments of the transfer fee agreed plus default interest at a rate of 5% per annum applicable as from the date of the decision.

17. On 16 December 2019, the PSC FIFA issued its decision in the above dispute (the “Appealed Decision”) in the following terms: “1. The claim of the Claimant, Deportivo Popular Junior, is partially accepted.

2. The Respondent, Atletico Mineiro, has to pay to the Claimant the amount of USD 3,000,000 plus 15% interest p.a. as from 19 December 2018 until the date of effective payment.

3. The Respondent, Atletico Mineiro, has to pay to the Claimant the amount of USD 1,980,000 as penalty.

4. The Claimant is directed to inform the Respondent, immediately and directly, preferably to the e-mail address as indicated on the cover letter of the present decision, of the relevant bank account to which the Respondent must pay the amounts mentioned under points 2 and 3 above.

5. The Respondent shall provide evidence of payment of the due amounts in accordance with points 2 and 3 above to FIFA to the e-mail address psdfifa@fifa.org, duly translated, if need be, into one of the official

FIFA languages (English, French, German, Spanish).

6. In the event that the amounts due plus interest in accordance with points 2 and 3 above are not paid by the Respondent within 45 days as from the notification by the Claimant of the relevant bank details to the Respondent, the Respondent shall be banned from registering any new players, either nationally or internationally, up until the due amount is paid and for the maximum duration of three entire and consecutive registration periods (cf. art. 24bis of the Regulations on the Status and Transfer of the Players).

7. The ban mentioned in point 6 above will be lifted immediately and prior to its complete serving, once the due amount is paid.

8. In the event that the aforementioned sums plus interest are still not paid by the end of the ban of three entire and consecutive registration periods, the present matter shall be submitted, upon request, to FIFA’s Disciplinary Committee for consideration and a formal decision.

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Clube Atlético Mineiro v. Deportivo Popular Junior FC, award of 28 June 2021

9. The final costs of the proceedings in the amount of CHF 20,000 are to be paid by both parties as follows: […]” (emphasis omitted).

18. On 10 February 2019, the PSC FIFA notified to the Parties the grounds of the Appealed

Decision, which can be summarized as follows: a. It is undisputed that the Parties signed a transfer agreement on 9 June 2018 by virtue of which Mineiro undertook to pay the total amount of USD 6.000.000 in 5 installments. By virtue of clause