CAS Case Digest · Verified against the full award text

CAS 2021/A/8224 — Galatasaray Sportif Sinai ve Ticari Yatirimlar A.Ş. v. Sofiane Feghouli

"Galatasaray v. Feghouli" · CAS upheld FIFA DRC's finding that Galatasaray's disciplinary fine and unilateral COVID-19 salary reduction were unlawful, ordering EUR 800,800 net to Feghouli.

What happened in Galatasaray v. Feghouli

Sofiane Feghouli, a French-Algerian professional footballer, signed a five-year employment contract with Galatasaray in August 2017 worth EUR 3,850,000 net per season. During the 2019/2020 season, two disputes arose. First, after Feghouli received a red card against Trabzonspor on 5 July 2020 and was banned for two matches by the TFF, Galatasaray imposed a disciplinary fine of EUR 231,000 (6% of his annual salary) and deducted it entirely from his May 2020 salary, leaving him with only 40% of that month's pay. Second, citing COVID-19 financial losses, the Club unilaterally reduced his annual salary by 15% (EUR 577,500) without his agreement. Feghouli filed a claim before the FIFA DRC, which on 17 June 2021 partially upheld his claim, reducing the fine to EUR 7,700 and ordering repayment of the salary reduction, plus March 2021 salary and housing allowance, totalling EUR 1,191,800 plus 5% interest. Galatasaray appealed to CAS. The Sole Arbitrator confirmed the DRC's core findings: the fine was disproportionate and applied abusively; the salary reduction was not made in good faith and did not comply with FIFA COVID-19 Guidelines. The March 2021 payments were acknowledged as already made, reducing the final award to EUR 800,800 net. This case matters as a leading authority on the limits of club disciplinary fines, COVID-19 unilateral salary reductions, and the protection of players' basic salary rights under Swiss law.

Procedural history of CAS 2021/A/8224

On 14 September 2020, Feghouli lodged a claim before the FIFA Dispute Resolution Chamber (DRC) seeking EUR 1,191,000 plus 10% interest p.a. for unlawfully withheld remuneration. The Player later amended his claim to EUR 1,199,500. On 17 June 2021, the FIFA DRC partially upheld the claim, ordering Galatasaray to pay EUR 1,191,800 net plus 5% interest p.a., covering the partially reduced fine (EUR 223,300), the unlawful salary reduction (EUR 577,500), March 2021 salary (EUR 385,000), and March 2021 housing allowance (EUR 6,000). The DRC reduced the fine from EUR 231,000 to EUR 7,700 and rejected the Club's COVID-19 justification for the salary cut. The grounds were notified on 21 July 2021. Galatasaray filed its Statement of Appeal with CAS on 10 August 2021 and its Appeal Brief on 2 September 2021. Feghouli filed his Answer on 8 November 2021. A videoconference hearing was held on 8 March 2022. CAS was asked to set aside the DRC decision and confirm the legitimacy of both the fine and the salary reduction.

Key holdings in CAS 2021/A/8224

• A club may bind a player to its internal disciplinary regulations by express reference in the employment contract, and may set off fines against salary, but the set-off must not nullify the employee's right to a basic salary or be applied in an abusive way.
• Deducting a fine equivalent to 6% of a player's annual salary entirely from a single monthly instalment, leaving the player with only 40% of that month's pay, constitutes an abusive application of the set-off under Articles 323a and 323b of the Swiss CO.
• Where club disciplinary regulations provide only a minimum fine rate (2%) with no maximum threshold, they fail to comply with the overarching principle of predictability of sanctions, rendering their legality at least arguable.
• A unilateral COVID-19 salary reduction not agreed upon by the player, not grounded in national law or a collective bargaining agreement, and not communicated directly to the player fails the good faith, reasonableness, and proportionality requirements of the FIFA COVID-19 Guidelines.
• CAS confirmed that a proportionate COVID-19 reduction would be limited to the monthly instalments falling within the period of actual competition suspension, not applied as a percentage of the full annual salary deducted from only two months.

How the CAS panel reasoned

The Sole Arbitrator applied FIFA Regulations and Swiss law subsidiarily, as agreed in the employment contract and confirmed by Article 56(2) of the FIFA Statutes. On the fine, he accepted that the Disciplinary Regulations were validly incorporated by reference and that the player had accepted them. However, he found the cumulation of fines under Articles 8(7)(a) and (d) impermissible given Article 7's 'most severe sanction only' rule. More critically, deducting EUR 231,000 from a single monthly salary of EUR 385,000 left the player with only 40% of that month's pay, violating the employee-protection principle in Articles 323a and 323b of the Swiss CO as interpreted in CAS 2018/A/5807. The Disciplinary Regulations' unlimited discretion on fine amounts also breached the predictability principle (citing CAS 2019/A/6278 and CAS 2020/A/7019). The Arbitrator therefore upheld the DRC's reduction of the fine to EUR 7,700 under Article 163(3) of the Swiss CO. On the salary reduction, the Arbitrator rejected the Club's argument that deducting 15% of the annual salary from only two months' pay was a 'lenient measure', finding it actually reduced those two months to 25% of their contractual value. The Club failed to provide official documentation of financial losses and did not communicate the unilateral decision directly to the player. Absent agreement, national law basis, or CBA, the reduction was not in good faith and not proportionate, consistent with FIFA COVID-19 Guidelines and the DRC's reasoning in REF-20-01176.

Why Galatasaray v. Feghouli matters in CAS jurisprudence

This award is a significant CAS authority on three intersecting issues: (1) the limits of club disciplinary fines and salary set-offs under Swiss employment law, confirming that deducting a fine from a single monthly instalment so as to leave a player with less than half his salary is abusive; (2) the requirement that club disciplinary regulations comply with the predictability principle by setting a maximum fine threshold; and (3) the conditions under which a unilateral COVID-19 salary reduction can be recognised by FIFA/CAS, establishing that proportionality requires limiting any reduction to the months of actual competition suspension rather than spreading an annual percentage across fewer months.

Cases cited in this award

CAS 2018/A/5807 CAS 2007/A/1353 CAS 2013/A/3109 CAS 2010/O/2132 CAS 2019/A/6278 CAS 2020/A/7019

Frequently asked questions about Galatasaray v. Feghouli

Did CAS uphold Galatasaray's EUR 231,000 disciplinary fine against Feghouli?

No. CAS confirmed the FIFA DRC's reduction of the fine from EUR 231,000 to EUR 7,700. The Sole Arbitrator found the fine disproportionate because deducting the full amount from Feghouli's May 2020 salary left him with only 40% of that month's pay, constituting an abusive set-off under Articles 323a and 323b of the Swiss CO. The Disciplinary Regulations' failure to set a maximum fine threshold also violated the principle of predictability of sanctions.

Was Galatasaray's 15% COVID-19 salary reduction of Feghouli's wages lawful under FIFA guidelines?

No. CAS held the unilateral reduction unlawful because no agreement was reached with the player, the Club did not ground the reduction in Turkish national law or a collective bargaining agreement, and it failed to communicate the decision directly to Feghouli. The Arbitrator also found the measure disproportionate because deducting 15% of the annual salary (EUR 577,500) from only two monthly instalments reduced those months to 25% of their contractual value, contrary to FIFA COVID-19 Guidelines which require any reduction to be limited to the months of actual competition suspension.

How much did CAS order Galatasaray to pay Feghouli in total?

CAS ordered Galatasaray to pay Feghouli EUR 800,800 net plus 5% interest p.a.: EUR 223,300 (representing the unlawfully retained portion of the fine) from 1 June 2020, and EUR 557,500 (the unlawful salary reduction) from 1 June 2020. The March 2021 salary of EUR 385,000 and housing allowance of EUR 6,000 were removed from the award as Feghouli acknowledged those had already been paid in May 2021.

Can a football club incorporate disciplinary regulations by reference in an employment contract and deduct fines from a player's salary?

Yes, in principle. CAS confirmed in this case, consistent with CAS 2018/A/5807, that a club may bind a player to its internal disciplinary regulations through an express contractual reference and may set off fines against salary if the player has accepted this mechanism. However, the set-off must not nullify the player's right to a basic salary, must not be applied abusively, and the regulations themselves must comply with the principle of predictability by establishing a determinable maximum sanction rather than leaving the amount to unlimited club discretion.

Topics: Transfers, agents, TPO & sell-on clauses at CAS

Source: official award. This digest was generated by LexXi from the full award text and machine-verified against it — every figure, article and citation above appears in the source. It is an editorial summary, not legal advice. See how ElevenLex verification works.