Disputes Arising From Football Player Contracts and the System of UCK and CAS

Football is a popular sport passionately followed and played by millions of people worldwide. The contracts signed between football players and football clubs define the mutual rights and obligations of both parties. However, disputes arising from player contracts can emerge at any time. The resolution of such disputes is a complex process that requires expertise in sports law and, specifically, football law. Football player contracts are legal agreements that regulate the rights and obligations of both players and clubs throughout the players’ careers. These contracts cover various topics, including the player’s salary, transfer fees, bonuses, insurance, payment conditions, license durations, performance-based conditions, as well as provisions regarding disciplinary penalties and the rights and obligations of the parties in the event of contract termination. Disputes arising from football player contracts may involve financial disagreements, breaches of contract, transfer disputes, and issues necessitating contract termination.

It should be noted that the mandatory arbitration provisions of the Dispute Resolution Committee (“UCK”) have been annulled by the Constitutional Court.  As a result, UCK now operates as an optional arbitration body, and in the absence of an arbitration clause or agreement between the parties, disputes will be resolved in the judiciary. According to Article 5 of Law No. 7036 on Labor Courts, disputes arising between employees working under service contracts defined in the Turkish Code of Obligations are within the jurisdiction of the Labor Courts. Professional football player contracts, however, are excluded from the scope of the Labor Code under Article 4/1-g. Therefore, the legal nature of the professional football player contract has been determined as a service contract under TBK, and disputes related to these contracts will be heard in civil courts.

The Dispute Resolution Committee System

The Dispute Resolution Committee is established within the Turkish Football Federation (“TFF”) to resolve sports-related financial and administrative disputes. Under the TFF Foundation Law, UCK is one of TFF’s first-level legal bodies. UCK examines and resolves all football-related disputes (including disputes arising from football player contracts, coach contracts, etc.). UCK’s jurisdiction needs to be examined in two periods: before and after the Constitutional Court decision in 2019. Between 2007 and 2009, UCK was solely responsible for examining all disputes arising from football contracts, which meant it was operating as a mandatory arbitration body. All disputes related to football contracts were excluded from judicial review and placed under the jurisdiction of UCK as a mandatory arbitration body. In 2011, following a legislative change, UCK was granted exclusive jurisdiction over disputes related to sports penalties and training compensation, while other disputes were handled as optional arbitration. In 2015, UCK returned to its previous practice, taking on the role of mandatory arbitration for disputes arising from football contracts. However, following the 2019 Constitutional Court ruling, this mandatory arbitration practice was abolished. From 2019 onwards, UCK no longer serves as mandatory arbitration for disputes involving football players, but continues to operate as an optional arbitration body as agreed by the parties.

Applications to UCK are made in writing, accompanied by a payment receipt and petition. The opposing party has seven days to respond in writing. UCK operates in Turkish, and the applicable rules are governed by Turkish law. UCK makes decisions in accordance with FIFA and UEFA regulations as well as Turkish laws. Decisions made by UCK can be appealed, and the decision of the Arbitration Board is final.

CAS System

The Court of Arbitration for Sport (“CAS”) is the arbitration center authorized to resolve football-related disputes. CAS has five main functions:

• To adjudicate disputes as the first and sole competent body,
• To act as an appeal body for disciplinary decisions made by sports federations,
• To provide legal opinions,
• To resolve disputes through mediation procedures amicably,
• To quickly resolve disputes arising during international sporting championships.

As seen above, CAS operates in a dual structure: first-instance arbitration and appeal arbitration. CAS handles all disputes related directly or indirectly to sport. Therefore, individuals such as athletes, clubs, federations, event organizers, sponsors, television companies, and other entities with a direct or indirect link to sport may appeal to CAS.

One of the conditions for applying to CAS is the existence of an arbitration clause or agreement between the parties. If the parties have not explicitly agreed that disputes will be resolved through CAS arbitration, CAS does not have the authority to examine the dispute as first-instance arbitration. Furthermore, a fee must be paid when applying to CAS, and the petition must be submitted to CAS. The procedure followed by CAS is written. In disputes examined by CAS as first-instance arbitration, it is clear that the arbitration is optional, not mandatory, as stipulated by law or regulation.

The place of arbitration is Lausanne, and the language of arbitration and proceedings is either English or French. On the other hand, CAS serves as the mandatory arbitration center for disciplinary and administrative disputes arising within the national and international federations’ frameworks. CAS also mandates that all legal avenues must be exhausted before applying to CAS. Consequently, applications made before exhausting all legal remedies will be rejected due to procedural issues. If the applicable law has not been chosen by the parties, Swiss law, the lex arbitri, will apply.

Conclusion

Today, sport is rapidly becoming a global phenomenon and an indispensable part of daily life. Consequently, “sports law,” a specialized legal discipline for resolving conflicts between the subjects of sport, has naturally emerged. Disputes in the field of sports law can be resolved through state judicial organs or alternative dispute resolution methods, such as arbitration. In particular, arbitration has become the most preferred dispute resolution method in sports law, both in Turkey and internationally, due to the advantages it offers. This has led to the establishment of a global sports arbitration court, the Court of Arbitration for Sport (CAS), which is recognized as the sole competent, independent, and binding jurisdictional body for resolving sports law disputes. In Turkey, the Dispute Resolution Committee (UCK) has been established for similar purposes.

CAS resolves all sports-related disputes, including those related to doping, using arbitration and mediation methods in accordance with sport-specific procedural rules. CAS ensures alignment between the procedural rules of national and international sports federations and organizations. CAS functions through its two primary units: the First-Instance Arbitration Unit and the Appeal Arbitration Unit. Similarly, UCK is also an arbitration body established to resolve disputes in the sports domain, with both mandatory and optional arbitration roles. When UCK is mandated to act as a mandatory arbitration body, the judiciary has no jurisdiction over the dispute. However, if UCK’s role is optional, disputes will be resolved in the judiciary unless the parties have opted for arbitration.