What obligations do clubs owe players if suspending their contract for Covid-19 (FCSB v Planic)?

The case of FC FCSB SA v. Bogdan Planic1 is of notable interest to sports clubs, players and sports law practitioners who deal with the financial consequences of the COVID-19 pandemics and related employment law disputes.

Indeed, it is one of the rare cases where a Court of Arbitration for Sport (CAS) panel partially allowed an appeal filed by a club against a FIFA Dispute Resolution Chamber ( DRC) decision. In their decision, DRC determined that a player whose employment contract had been suspended by a club during the COVID-19 pandemics had just cause to terminate their contract under Art. 14bis of the FIFA Regulations on the Status and Transfer of Players ( RSTP) and was entitled to substantial compensation.

This CAS award is interesting for clarifying some key aspects of COVID-19-related employment disputes, such as:

• the applicability of national law in dealing with the consequences of the COVID-19 pandemics on sport employment contracts;

• a club’s responsibilities, as an employer, during the suspension of employment contracts during COVID-19;

• the effective date of suspension of contracts; and

• the assessment of compensation, including mitigation.