Rio Football Services Hungary KFT v Sevilla Futbal Club SAD

Rio Football Services Hungary KFT v Sevilla Futbal Club SAD

Clause 6.4, properly construed, does not amount to a penalty and is enforceable; clauses 6.4 and 7 do not impose an unreasonable restraint of trade on the Defendant or the Player; the slavery/servitude argument fails as it is dependent on the restraint of trade argument, which is rejected.

Parties
Claimant/respondent: RIO FOOTBALL SERVICES HUNGARY KFT; Defendant/appellant: SEVILLA FUTBAL CLUB SAD
Jurisdiction
England and Wales
Judgment Date
06 October 2010
Procedural Posture
Civil / Renewed Application for Permission to Appeal Summary Judgment
Outcome
Application for permission to appeal dismissed
Legal Topics
Penalty Clauses, Restraint of Trade, Human Rights in Sports Contracts, Third Party Funding in Football Transfers
Contract Law Sports Law Penalty Clauses Restraint of Trade Human Rights in Sports Contracts Third Party Funding in Football Transfers

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Parties

RIO FOOTBALL SERVICES HUNGARY KFT

Claimant/respondent

SEVILLA FUTBAL CLUB SAD

Defendant/appellant

Procedural Posture

Civil / Renewed Application for Permission to Appeal Summary Judgment

Legal Issues

  1. 1 Whether clause 6.4 of the agreement constitutes a penalty and is unenforceable
  2. 2 Whether clauses 6.4 and 7 amount to an unreasonable restraint of trade
  3. 3 Whether the agreement infringes Article 4 of the Human Rights Convention (slavery/servitude)

Ratio Decidendi

Clause 6.4, properly construed, does not amount to a penalty and is enforceable; clauses 6.4 and 7 do not impose an unreasonable restraint of trade on the Defendant or the Player; the slavery/servitude argument fails as it is dependent on the restraint of trade argument, which is rejected.

Court Disposition

Application for permission to appeal dismissed

Orders

  • Claimant's application for permission to appeal dismissed
  • Claim proceeds to trial on remaining issues concerning validity of the Selkan Notice