Real Monarchs FC v Potenza Calcio & FIFA at CAS; USD 52,459 training compensation awarded

Real Monarchs FC v Potenza Calcio & FIFA at CAS; USD 52,459 training compensation awarded

CAS 2025/A/11503 Real Monarchs Football Club v. Potenza Calcio S.r.l. & Federation Internationale de Football Association (FIFA) ARBITRAL AWARD delivered by the COURT OF ARBITRATION FOR SPORT sitting in the following composition: Sole Arbitrator: Prof. Dr. Martin Schimke, Attorney-at-law in Düsseldorf, Germany in the arbitration between

Real Monarchs Football Club, Sandy, Utah, United States of America Represented by Mr. Salvatore Civale, Studio Civale Sports Law Firm, Nocera Inferiore, Italy Appellant and Potenza Calcio S.r.l., Potenza, Italy Represented by Mr. Paolo Lombardi and Mr. Luca Pastore, Lombardi Associates, Edinburgh, United Kingdom First Respondent

Fédération Internationale de Football Association (FIFA), Zurich, Switzerland Represented by Mr. Miguel Liétard Fernándes-Palacios, Director of Litigation Second Respondent with the intervention of Real Salt Lake, Sandy, Utah, United States of America Represented by Mr. Roberto Terenzio, Studio Legale Terenzio, Rende, Italy Intervening Party

CAS 2025/A/11503 Real Monarchs Football Club v. Potenza Calcio S.r.l. & FIFA – Page 2

I. PARTIES 1. Real Monarchs Football Club (the “Appellant” or “Real Monarchs”) is a professional football club with its registered offices in Sandy, Utah, United States of America. Real Monarchs plays in the MLS NEXT Pro league (the third tier of professional football in the USA) and is registered with the United States Soccer Federation (“USSF”), which in turn is affiliated to the Fédération Internationale de Football Association. 2. Potenza Calcio S.r.l. (the “First Respondent” or “Potenza”) is a professional football club with its registered offices in Potenza, Italy. Potenza is affiliated to the Federazione Italiana Giuoco Calcio (“FIGC”), which in turn is affiliated to the Fédération Internationale de Football Association. 3. The Fédération Internationale de Football Association (the “Second Respondent” or “FIFA”) is the international governing body of football with its registered offices in Zurich, Switzerland. 4. Real Salt Lake (the “Intervening Party” or “Real Salt Lake”) is a professional football club with its registered office in Sandy, Utah, USA. Real Salt Lake is registered with the USSF and plays in Major League Soccer (“MLS”), which is the professional football league governing the highest division of football in the USA and Canada, with its registered offices in New York, USA. 5. Where appropriate, the Appellant, the First Respondent, the Second Respondent and the Intervening Party will be jointly referred to as the parties to the dispute (the “Parties”). II. INTRODUCTION 6. These proceedings before the Court of Arbitration for Sport (“CAS”) concern a dispute regarding the liability of the Appellant and/or the Intervening Party to pay training compensation to the First Respondent in respect of the registration of the professional football player Mr. Gennaro Michael Nigro (the “Player”). 7. In particular, these proceedings concern an appeal brought by the Appellant against a decision of the FIFA Football Tribunal Dispute Resolution Chamber (the “FIFA DRC”) dated 17 April 2025 (the “Appealed Decision”), finding (inter alia) that the First Respondent is owed the amount of USD 52,459 as training compensation plus 5% interest per annum on that amount, as from 30 September 2022 until the date of effective payment. III. FACTUAL BACKGROUND 8. Below is a summary of the main relevant facts and allegations based on the Parties’ oral and written submissions, pleadings and evidence adduced in the course of the present proceedings. Additional facts and allegations found in the Parties’ written submissions, pleadings and evidence may be set out, where relevant, in connection with the further legal discussion. While the Sole Arbitrator has considered all the facts, allegations, legal arguments and evidence submitted by the Parties in the present proceedings, he refers in

CAS 2025/A/11503 Real Monarchs Football Club v. Potenza Calcio S.r.l. & FIFA – Page 3

this Arbitral Award only to the submissions and evidence he considers necessary to explain his reasoning. A. Background facts 9. The Player, born on 29 May 2000, is a professional football player holding United States nationality. 10. According to the FIGC player passport, the Player was registered with A.S. Roma (Italy), first as an amateur from 8 August 2018 to 30 June 2019, and subsequently as a professional from 25 July 2019 until 7 September 2020. 11. On 8 September 2020, the Player was registered with Potenza as a professional player. The Player remained registered with Potenza until 30 June 2022. During this period, the Player was between the ages of 20 and 22 years old. 12. On or around 19 August 2022, the Player signed an employment contract with Real Monarchs, to commence on 31 August 2022. 13. On 26 August 2022, the USSF requested the International Transfer Certificate (“ITC”) for the Player from the FIGC via the FIFA Transfer Matching System (“TMS”). The request was made on behalf of Real Salt Lake. The TMS transfer record (Reference No. 566213) documents an instruction on this date of “engage out of contract free of payment” transfer, with Real Salt Lake listed as the “instructing club” and Potenza listed as the “counter club”. The ITC was delivered on 30 August 2022, and received by Real Salt Lake on 31 August 2022. 14. On 31 August 2022, the Player was registered with Real Monarchs/Real Salt Lake. The TMS player data lists the Player as assigned to the club “Real Salt Lake” (Club ID 1492, association USSF). 15. On 1 September 2023, the Player was loaned from Real Salt Lake to ADO Den Haag (Netherlands). The loan agreement identified Real Salt Lake as the lending club. The Dutch football association’s (KNVB) player passport documents the loan period as running from 1 September 2023 to 22 February 2024, with the Player registered “on loan from Real Salt Lake”. 16. On 22 February 2024, the Player returned from loan to Real Salt Lake (as documented by the ITC delivery “to USSF - Real Salt Lake (return from loan)”). 17. On 23 February 2024, the Player’s employment relationship with Real Monarchs/Real Salt Lake was terminated by mutual agreement. B. Proceedings before FIFA 18. On 25 September 2024, Potenza filed a claim for training compensation against Real Salt Lake before the FIFA DRC. The claim was registered under reference number TMS 14656.

CAS 2025/A/11503 Real Monarchs Football Club v. Potenza Calcio S.r.l. & FIFA – Page 4

In its claim, Potenza sought payment of training compensation in the amount of USD 52,459, plus 5% interest per annum as from the date the claim was lodged. 20. In substantiating its claim, Potenza argued that the Player was registered with Potenza as a professional from 8 September 2020 to 30 June 2022, and was subsequently registered with Real Salt Lake on 31 August 2022. Potenza contended that training compensation was due pursuant to Article 20 of the FIFA Regulations on the Status and Transfer of Players, July 2022 version (the “FIFA RSTP”) and Annex 4 thereof, and should be calculated based on the training costs of a CONCACAF Category II club. 21. On 8 October 2024, the FIFA DRC opened the above-mentioned case and invited Real Salt Lake to submit its response. 22. In its response dated 28 October 2024, Real Salt Lake argued (inter alia) that: (i) the actual employing club was Real Monarchs, a separate legal entity from Real Salt Lake, and the Player’s employment contract was with Real Monarchs; (ii) Potenza had waived its entitlement to training compensation through communications by Mr. Vincenzo D’Ambrosio, General Secretary of Potenza, prior to the Player’s registration; (iii) the Player had completed his training before joining Potenza, having been registered as a professional with A.S. Roma and other clubs prior to his registration with Potenza; and (iv) if training compensation were found to be due, Real Monarchs should be categorised as a Category IV club (or at most Category III), as Real Monarchs competes in the MLS NEXT Pro, effectively the third division of professional football in the United States, not in the MLS. 23. On 21 November 2024, Potenza filed its reply, disputing Real Salt Lake’s arguments and maintaining its claim for training compensation. Potenza argued that Real Monarchs and Real Salt Lake are the same club for the purposes of the FIFA RSTP, that no valid waiver had occurred, and that the club should be categorised as a Category II club. 24. On 2 December 2024, Real Salt Lake filed further submissions, responding to Potenza’s reply and reiterating its position. 25. On 17 April 2025, the FIFA DRC rendered the Appealed Decision. In the Appealed Decision, the FIFA DRC ordered as follows: “1. The claim of the Claimant, POTENZA CALCIO S.R.L., is accepted. 2. The Respondent, Real Salt Lake, has to pay to the Claimant the amount of USD 52,459.00 as training compensation plus 5% interest p.a. on that amount, as from 30 September 2022 until the date of effective payment. 3. Full payment (including all applicable interest) shall be made to the bank account indicated in the enclosed Bank Account Registration Form. 4. Pursuant to article 24 of the Regulations on the Status and Transfer of Players is full payment (including all applicable interest) is not paid within 45 days of notification of this decision, the following consequences shall apply:

CAS 2025/A/11503 Real Monarchs Football Club v. Potenza Calcio S.r.l. & FIFA – Page 5

The Respondent shall be banned from registering any new players, either nationally or internationally, up until the due amount is paid. The maximum duration of the ban shall be of three entire and consecutive registration periods. 2. The present matter shall be submitted, upon request, to the FIFA Disciplinary Committee in the event that full payment (including all applicable interest) is still not paid by the end of the three entire and consecutive registration periods. […] 5. The consequences shall only be enforced at the request of the Claimant in accordance with article 24 paragraphs 7 and 8 and article 25 of the Regulations on the Status and Transfer of Players. 6. The final costs of the proceedings in the amount of USD 8,000.00 are to be paid by the Respondent to FIFA reference to case no. TMS 14656 (cf. note relating to the payment of the procedural costs below).” 26. On 19 May 2025, the FIFA DRC notified the parties of the grounds of the Appealed Decision. In its reasoning, the FIFA DRC found (inter alia) that: (i) Real Monarchs and Real Salt Lake are to be considered as the same club for the purposes of the FIFA RSTP, based on their shared ownership, management, training facilities, medical staff, administrative staff, and common TMS account; (ii) the alleged waiver of training compensation was not sufficiently proven; (iii) the argument that the Player had completed his training before joining Potenza was not sufficiently substantiated; (iv) the Respondent should be categorised as a Category II club for the calculation of training compensation. 27. The FIFA DRC calculated the training compensation as follows: training costs of USD 40,000 per year for a CONCACAF Category II club, pro-rated over 479 days (representing the period from 8 September 2020 until 30 June 2022, adjusted to account for the training compensation calculation methodology), resulting in a total amount of USD 52,459. IV. PROCEEDINGS BEFORE THE COURT OF ARBITRATION FOR SPORT 28. On 7 June 2025, the Appellant filed a Statement of Appeal pursuant to Article R48 of the Code of Sports-related Arbitration (the “CAS Code”) (2023 edition) against the Appealed Decision. The Appellant requeste