A missed instalment under a player transfer agreement does not simply disappear. CAS 2025/A/11693 Santos FC v. AS Monaco illustrates the full procedural journey — from contractual default through FIFA adjudication to CAS appeal — and the consequences of asking a tribunal to rewrite terms that were freely negotiated.
A missed instalment under a player transfer agreement does not simply disappear. CAS 2025/A/11693 Santos FC v. AS Monaco illustrates the full procedural journey — from contractual default through FIFA adjudication to a CAS appeal — and the consequences of asking a tribunal to rewrite terms that were freely negotiated. Understanding that process is essential for any club, agent, or sports law practitioner operating in international football.
The regulatory framework
International player transfers are governed primarily by the FIFA Regulations on the Status and Transfer of Players (RSTP). Article 14 of the Transfer Agreement in this matter expressly confirmed that the agreement was governed by the FIFA Regulations and that any dispute would be referred first to the relevant FIFA judicial bodies, with the Court of Arbitration for Sport (CAS) in Lausanne retained as the appellate jurisdiction. In keeping with Article 49(2) of the FIFA Statutes, CAS applies the FIFA Regulations as the primary source of law, with Swiss law applying subsidiarily — FIFA being incorporated in Switzerland. This hierarchical framework governs every stage of the process described below.
Step 1: The transfer agreement and payment obligations
On 13 July 2023, Santos Futebol Clube and AS Monaco concluded a Transfer Agreement for the definitive transfer of player Jean Lucas De Souza Oliveira. The total transfer fee was EUR 6,000,000 (approximately R114,660,000), payable in three equal instalments of EUR 2,000,000 (approximately R38,220,000 each), due on 31 August 2023, 30 June 2024, and 31 January 2025 respectively. Article 5 of the agreement provided that any late payment would attract an annual interest rate of 15%, calculated pro rata from the date of default, automatically and without notice. Santos paid the first two instalments in full but failed to pay the third instalment by its due date.
Step 2: Default notice and pre-litigation engagement
Following the missed deadline, AS Monaco contacted Santos on 3 February 2025 and again on 6 February 2025, requesting payment and information. On 7 February 2025, Santos acknowledged the debt but proposed rescheduling the final instalment into two payments extending to January 2026, citing internal restructuring. AS Monaco rejected the proposal on 10 February 2025, noting its own outstanding financial obligations, and offered to waive the 15% contractual interest if Santos paid in full within that week. Santos did not pay. On 18 February 2025, AS Monaco issued a formal default notice setting a deadline of 3 March 2025 for full payment of the outstanding instalment and accrued interest.
Step 3: Claim before the FIFA Players' Status Chamber
On 14 March 2025, AS Monaco lodged an overdue payables claim against Santos with FIFA. Santos filed a reply in which it acknowledged the outstanding EUR 2,000,000 (approximately R38,220,000) but disputed the application of the contractually agreed 15% interest rate, arguing it was neither reasonable nor fair and should be reduced to between 5% and 8% per annum under Articles 163 and 163.1 of the Swiss Code of Obligations. On 20 May 2025, the Single Judge of the FIFA Players' Status Chamber (PSC) issued her decision, upholding the claim in full. Santos was ordered to pay EUR 2,000,000 (approximately R38,220,000) as the outstanding instalment plus EUR 32,876.71 (approximately R628,314) in interest at the contractual rate, calculated from 31 January 2025 to 12 March 2025. FIFA's procedural costs of USD 25,000 were also imposed on Santos. The Single Judge applied the principle of pacta sunt servanda and confirmed that a contractually agreed rate of 15% per annum is deemed reasonable under Football Tribunal jurisprudence.
Step 4: Appeal to the Court of Arbitration for Sport
The FIFA decision was notified to the parties with full grounds on 30 July 2025. Pursuant to Article 50(1) of the FIFA Statutes, a party wishing to appeal must file its Statement of Appeal with CAS within 21 days of receipt of the written decision. Santos filed its Statement of Appeal on 20 August 2025, within the prescribed period, and its Appeal Brief on 29 August 2025. AS Monaco filed its Answer on 19 September 2025. A sole arbitrator was appointed, and a hearing was held by videoconference on 27 November 2025.
Step 5: The CAS hearing and applicable law
At the hearing, Santos confirmed that it did not dispute the principal debt of EUR 2,000,000 (approximately R38,220,000). The sole issue before the Sole Arbitrator was whether the contractually agreed interest rate of 15% per annum should be reduced. Santos argued it constituted an excessive penalty clause under Swiss law and that CAS should substitute a rate of 5% per annum, being the standard rate applied under the Swiss Code of Obligations. AS Monaco maintained that the parties had freely negotiated the rate — the original draft had in fact provided for 18%, which Santos itself had sought to reduce to 10%, with 15% being the agreed compromise — and that the principle of pacta sunt servanda required the rate to be enforced as written.
Step 6: The CAS award
On 22 May 2026, the Sole Arbitrator dismissed the appeal and upheld the FIFA decision in full. Applying the FIFA Regulations as the primary legal framework and Swiss law subsidiarily, the Sole Arbitrator found that the FIFA Regulations do not prescribe any maximum permissible rate for contractual late payment interest, and that under Swiss law and established CAS jurisprudence, interest below 18% per annum falls within an acceptable range and does not contravene Swiss public policy. Santos had failed to identify any specific legal rule rendering the 15% rate unlawful. The Sole Arbitrator further noted that Santos had informed AS Monaco of its payment difficulties only after the deadline had passed and after two follow-up communications, and had in the meantime concluded permanent transfer agreements for two prominent players — conduct the Sole Arbitrator described as disloyal and indicative of deliberate delay.
Clubs, agents, and practitioners are advised to treat contractual late payment clauses with the same seriousness as the transfer fee itself. Where a rate has been negotiated and signed, CAS will enforce it. The Swiss statutory default rate of 5% per annum is not a ceiling on what parties may agree — it is merely the fallback in the absence of any agreement. The time to negotiate is before the contract is concluded, not after the debt falls due.
Written by X Xulu Attorneys, 10 June 2026. This article is for informational purposes only and does not constitute legal advice. Sources: CAS 2025/A/11693, Santos Futebol Clube v. Association Sportive de Monaco Football Club, Award of 22 May 2026; FIFA Regulations on the Status and Transfer of Players; FIFA Statutes (2024 edition), Articles 49(2) and 50(1); CAS Code of Sports-related Arbitration (Articles R47, R49, R57, R58); Swiss Code of Obligations, Articles 73, 116 and 163; CAS 2010/A/2128; CAS 2021/A/7727.