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	<title>Comments on: Mutu’s Multi-Million Dollar Question</title>
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	<link>http://www.epltalk.com/mutus-multi-million-dollar-question/10598</link>
	<description>Daily News &#38; Analysis of the English Premier League</description>
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		<title>By: Me, myself and I</title>
		<link>http://www.epltalk.com/mutus-multi-million-dollar-question/10598#comment-72869</link>
		<dc:creator>Me, myself and I</dc:creator>
		<pubDate>Mon, 14 Sep 2009 14:09:13 +0000</pubDate>
		<guid isPermaLink="false">http://www.epltalk.com/?p=10598#comment-72869</guid>
		<description>IMO, in a civil court only the contract will count, not what Chelsea of Mutu are saying/claiming.

Every reasonably well set up contract sets up obligations for each signing party, plus compensations/damage to be paid in case one of the parties doesn&#039;t do its job.

Usually, like in any commercial contract, one party has to pay compensation/damage proportional to what it stands to earn. For instance, when two companies make a contract for a project, delivering the project late is taxed as a percentage of the project&#039;s value per day or week or month.

So probably there are clauses in Mutu&#039;s contract regarding compensation for failing to fulfill his contract, as percentages of the salary he was going to earn - possibly the whole sallary and then some. But it&#039;s unlikely that there are clauses in the contract relating what he owes the club in case of breach of contract to the transfer fee. In which case, IMO, there&#039;s no chance Chelsea will be able to justify asking for the whole transfer fee in a civil court. After all, they were as responsible when they signed the contract as Mutu was when he signed it. It is not that Mutu didn&#039;t have an influence on this fee, it is that it is highly unusual and unlikely that a contract contains clauses that make you pay compensation for fees you can&#039;t influence and which you don&#039;t at all receive. In commercial contracts between companies, when there is a risk which you, as a supplier, cannot take, but the customer doesn&#039;t want to carry, an insurance company is involved, the contract&#039;s value is increased by the insurance fees, and the insurance company gets some controlling authority in the project. Which I doubt was the case in Mutu&#039;s contract with Chelsea.

One other thing that makes me believe Mutu has quite a chance in a civil court is that the CAS has lately issued quite some funny rulings, which were appealed and then overturned. So it is possible that they ruled not based on hard facts (i.e. the contract), but on hot air issued by either Chelsea or Mutu, as they did in previous cases.

However, afaik nobody has seen the contract yet, so all we can do is make assumptions. Should the contact say that Mutu has to pay back the transfer fee in case of breach of contract, he&#039;s screwed, whether any of us likes it or not, and in spite of his spectacular recovery from drug use.</description>
		<content:encoded><![CDATA[<p>IMO, in a civil court only the contract will count, not what Chelsea of Mutu are saying/claiming.</p>
<p>Every reasonably well set up contract sets up obligations for each signing party, plus compensations/damage to be paid in case one of the parties doesn’t do its job.</p>
<p>Usually, like in any commercial contract, one party has to pay compensation/damage proportional to what it stands to earn. For instance, when two companies make a contract for a project, delivering the project late is taxed as a percentage of the project’s value per day or week or month.</p>
<p>So probably there are clauses in Mutu’s contract regarding compensation for failing to fulfill his contract, as percentages of the salary he was going to earn – possibly the whole sallary and then some. But it’s unlikely that there are clauses in the contract relating what he owes the club in case of breach of contract to the transfer fee. In which case, IMO, there’s no chance Chelsea will be able to justify asking for the whole transfer fee in a civil court. After all, they were as responsible when they signed the contract as Mutu was when he signed it. It is not that Mutu didn’t have an influence on this fee, it is that it is highly unusual and unlikely that a contract contains clauses that make you pay compensation for fees you can’t influence and which you don’t at all receive. In commercial contracts between companies, when there is a risk which you, as a supplier, cannot take, but the customer doesn’t want to carry, an insurance company is involved, the contract’s value is increased by the insurance fees, and the insurance company gets some controlling authority in the project. Which I doubt was the case in Mutu’s contract with Chelsea.</p>
<p>One other thing that makes me believe Mutu has quite a chance in a civil court is that the CAS has lately issued quite some funny rulings, which were appealed and then overturned. So it is possible that they ruled not based on hard facts (i.e. the contract), but on hot air issued by either Chelsea or Mutu, as they did in previous cases.</p>
<p>However, afaik nobody has seen the contract yet, so all we can do is make assumptions. Should the contact say that Mutu has to pay back the transfer fee in case of breach of contract, he’s screwed, whether any of us likes it or not, and in spite of his spectacular recovery from drug use.</p>
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		<title>By: usf_fan1</title>
		<link>http://www.epltalk.com/mutus-multi-million-dollar-question/10598#comment-71304</link>
		<dc:creator>usf_fan1</dc:creator>
		<pubDate>Wed, 02 Sep 2009 22:25:02 +0000</pubDate>
		<guid isPermaLink="false">http://www.epltalk.com/?p=10598#comment-71304</guid>
		<description>Every appeal has only made Mutu&#039;s situation worse....</description>
		<content:encoded><![CDATA[<p>Every appeal has only made Mutu’s situation worse….</p>
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		<title>By: Mark Carter</title>
		<link>http://www.epltalk.com/mutus-multi-million-dollar-question/10598#comment-71294</link>
		<dc:creator>Mark Carter</dc:creator>
		<pubDate>Wed, 02 Sep 2009 21:07:03 +0000</pubDate>
		<guid isPermaLink="false">http://www.epltalk.com/?p=10598#comment-71294</guid>
		<description>Rob Banks - I guess we will have to agree to disagree then!

However, the court&#039;s statement just compounds my reasons for taking such a dislike to the case brought against him.

We shall see what the Swiss Federal Court make of the matter in due course.</description>
		<content:encoded><![CDATA[<p>Rob Banks – I guess we will have to agree to disagree then!</p>
<p>However, the court’s statement just compounds my reasons for taking such a dislike to the case brought against him.</p>
<p>We shall see what the Swiss Federal Court make of the matter in due course.</p>
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		<title>By: rob banks</title>
		<link>http://www.epltalk.com/mutus-multi-million-dollar-question/10598#comment-71288</link>
		<dc:creator>rob banks</dc:creator>
		<pubDate>Wed, 02 Sep 2009 20:35:50 +0000</pubDate>
		<guid isPermaLink="false">http://www.epltalk.com/?p=10598#comment-71288</guid>
		<description>&quot;he is paying back an amount that has been calculated by the amount the club paid for him, which he had no influence over.&quot;

It doesn&#039;t really matter whether he had influence over it. What he did have influence over was upholding his end of the contract, which he did not do. The innocent party (Chelsea) relied on his promised performance, and incurred costs in doing so. Normally these costs are be amortised over the course of the contract, but Mutu&#039;s breach robbed Chelsea of the ability to do that, and that loss was forseeable even if the extent of the loss wasn&#039;t.

to quote the court: &quot;...the fact that the Player was not party to the Transfer Contract and had therefore not determined the amount of the transfer fee, or the other expenses incurred by the Club in connection with the acquisition of the Player (on which compensation is calculated), is entirely irrelevant.&quot;</description>
		<content:encoded><![CDATA[<p>“he is paying back an amount that has been calculated by the amount the club paid for him, which he had no influence over.”</p>
<p>It doesn’t really matter whether he had influence over it. What he did have influence over was upholding his end of the contract, which he did not do. The innocent party (Chelsea) relied on his promised performance, and incurred costs in doing so. Normally these costs are be amortised over the course of the contract, but Mutu’s breach robbed Chelsea of the ability to do that, and that loss was forseeable even if the extent of the loss wasn’t.</p>
<p>to quote the court: “…the fact that the Player was not party to the Transfer Contract and had therefore not determined the amount of the transfer fee, or the other expenses incurred by the Club in connection with the acquisition of the Player (on which compensation is calculated), is entirely irrelevant.”</p>
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		<title>By: Mark Carter</title>
		<link>http://www.epltalk.com/mutus-multi-million-dollar-question/10598#comment-71251</link>
		<dc:creator>Mark Carter</dc:creator>
		<pubDate>Wed, 02 Sep 2009 18:45:23 +0000</pubDate>
		<guid isPermaLink="false">http://www.epltalk.com/?p=10598#comment-71251</guid>
		<description>Rob Banks- As I understand it, Chelsea sued Mutu for breach of contract in order to regain the the transfer value. Treating him, like any business would, as an asset.

They had to write off that asset upon sacking the player - the value that they wrote off was to the amount of the striker&#039;s transfer value (which would have obviously been based on the price they paid for him when he arrived from Parma).

In Mutu&#039;s appeal he claimed that the majority of the compensation bill he is facing is based on a value that he has no control over.

Which is a valid point - he is paying back an amount that has been calculated by the amount the club paid for him, which he had no influence over.

And as you will remember Chelsea, at the time, were paying &#039;over the odds&#039; for players due to their riches.</description>
		<content:encoded><![CDATA[<p>Rob Banks- As I understand it, Chelsea sued Mutu for breach of contract in order to regain the the transfer value. Treating him, like any business would, as an asset.</p>
<p>They had to write off that asset upon sacking the player – the value that they wrote off was to the amount of the striker’s transfer value (which would have obviously been based on the price they paid for him when he arrived from Parma).</p>
<p>In Mutu’s appeal he claimed that the majority of the compensation bill he is facing is based on a value that he has no control over.</p>
<p>Which is a valid point – he is paying back an amount that has been calculated by the amount the club paid for him, which he had no influence over.</p>
<p>And as you will remember Chelsea, at the time, were paying ‘over the odds’ for players due to their riches.</p>
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		<title>By: rob banks</title>
		<link>http://www.epltalk.com/mutus-multi-million-dollar-question/10598#comment-71241</link>
		<dc:creator>rob banks</dc:creator>
		<pubDate>Wed, 02 Sep 2009 17:51:21 +0000</pubDate>
		<guid isPermaLink="false">http://www.epltalk.com/?p=10598#comment-71241</guid>
		<description>mark carter - that is not how chelsea began their &quot;claim&quot;. their claim was compensation for mutu&#039;s unilateral, without-cause breach of his employment contract. the number the CAS settled on for damages is the sum of the non-amortised portion of the transfer fee paid to acquire mutu (the largest portion), the non-amortised portion of the fee paid to his agent, non-amortised portion of mutu&#039;s sign-on fee, and several other fees relating to Chelsea&#039;s acquisition costs. The loss of his transfer value has nothing to do with it, it&#039;s compensation for the money they spent acquiring him.

Chelsea could have chosen not to sack him and tried to sell him to another club. The fee they received for him would only go towards paying setting-off the non-amortised portion of the transfer fee paid to acquire him.</description>
		<content:encoded><![CDATA[<p>mark carter – that is not how chelsea began their “claim”. their claim was compensation for mutu’s unilateral, without-cause breach of his employment contract. the number the CAS settled on for damages is the sum of the non-amortised portion of the transfer fee paid to acquire mutu (the largest portion), the non-amortised portion of the fee paid to his agent, non-amortised portion of mutu’s sign-on fee, and several other fees relating to Chelsea’s acquisition costs. The loss of his transfer value has nothing to do with it, it’s compensation for the money they spent acquiring him.</p>
<p>Chelsea could have chosen not to sack him and tried to sell him to another club. The fee they received for him would only go towards paying setting-off the non-amortised portion of the transfer fee paid to acquire him.</p>
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		<title>By: oliver</title>
		<link>http://www.epltalk.com/mutus-multi-million-dollar-question/10598#comment-71233</link>
		<dc:creator>oliver</dc:creator>
		<pubDate>Wed, 02 Sep 2009 17:16:35 +0000</pubDate>
		<guid isPermaLink="false">http://www.epltalk.com/?p=10598#comment-71233</guid>
		<description>What is an appropriate punishment?</description>
		<content:encoded><![CDATA[<p>What is an appropriate punishment?</p>
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		<title>By: usf_fan1</title>
		<link>http://www.epltalk.com/mutus-multi-million-dollar-question/10598#comment-71232</link>
		<dc:creator>usf_fan1</dc:creator>
		<pubDate>Wed, 02 Sep 2009 17:10:11 +0000</pubDate>
		<guid isPermaLink="false">http://www.epltalk.com/?p=10598#comment-71232</guid>
		<description>Tyler Tyler Tyler....Can we expect a blog post on this over at the biglead? Come on bro, the guy cost upwards of 30million Euros in a massive transfer, as soon as he pops for coke the transfer fee paid is worthless, and he also served a 7 month ban to boot. On top of all that his resale value it shot. You are always responsible for your own actions while under contract, this was 100% a self inflicted situation. Chelsea is well within there rights to recoup there money....As harsh as it may seem.</description>
		<content:encoded><![CDATA[<p>Tyler Tyler Tyler….Can we expect a blog post on this over at the biglead? Come on bro, the guy cost upwards of 30million Euros in a massive transfer, as soon as he pops for coke the transfer fee paid is worthless, and he also served a 7 month ban to boot. On top of all that his resale value it shot. You are always responsible for your own actions while under contract, this was 100% a self inflicted situation. Chelsea is well within there rights to recoup there money….As harsh as it may seem.</p>
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		<title>By: Huh</title>
		<link>http://www.epltalk.com/mutus-multi-million-dollar-question/10598#comment-71230</link>
		<dc:creator>Huh</dc:creator>
		<pubDate>Wed, 02 Sep 2009 17:06:14 +0000</pubDate>
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		<description>But they never paid £20 odd million for there employee!</description>
		<content:encoded><![CDATA[<p>But they never paid £20 odd million for there employee!</p>
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		<title>By: Mark Carter</title>
		<link>http://www.epltalk.com/mutus-multi-million-dollar-question/10598#comment-71229</link>
		<dc:creator>Mark Carter</dc:creator>
		<pubDate>Wed, 02 Sep 2009 17:05:45 +0000</pubDate>
		<guid isPermaLink="false">http://www.epltalk.com/?p=10598#comment-71229</guid>
		<description>Apologies * boldsoul.</description>
		<content:encoded><![CDATA[<p>Apologies * boldsoul.</p>
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