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

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

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