“We have successfully completed the transfer of fines and compensation to the designated recipient, effectively resolving the issue,” said Ngo Quoc Ta, Chairman of SHB Da Nang FC, a top-tier V-League 1 team in Vietnam, in an interview with Tuoi Tre (Youth) newspaper on Tuesday.

“The incident has served as a valuable lesson for our club and other professional football clubs,” Ta added.

Bui Xuan Hoa, Ta’s predecessor, attributed the incident to the team’s lack of expertise in the regulations and legal procedures surrounding the transfer of player Pham Thanh Tiep.

Tiep, who was born in Slovakia in 1996 and trained at FC Banik Prievidza, a team in the Slovak third-tier league, since the age of 12, joined SHB Da Nang on a trial basis in early 2019 and eventually secured a two-year contract.

However, due to a mismatch in playing style, Tiep terminated his contract with SHB Da Nang and reimbursed one year’s worth of the signing fee.

According to FIFA regulations, when a club signs a professional contract with a player under the age of 23, they are required to reimburse the player’s previous training institution for the training expenses.

FC Banik Prievidza had sent two written requests to SHB Da Nang, urging them to settle the cost, which amounted to over $60,000 at the time.

As SHB Da Nang failed to respond, FC Banik Prievidza started legal proceedings against them through FIFA’s Transfer Matching System in October 2020.

In response, FIFA demanded that SHB Da Nang pay over $60,000 to FC Banik Prievidza, with an additional five percent interest due to the late payment.

SHB Da Nang submitted a document to FIFA in December 2020 to dispute the claim, but it was deemed invalid as the club missed the response deadline.

Hoa, the former chairman, explained that the incident occurred during the height of the COVID-19 pandemic in Vietnam, which led to a lack of communication between SHB Da Nang and the Vietnam Football Federation for better solutions.

Additionally, Hoa acknowledged the club’s mistake of placing excessive trust in the transfer broker, who assured them that all administrative procedures and transfer documents for Tiep were legitimate.

As a result, SHB Da Nang submitted an appeal and $20,000 fee to the Court of Arbitration for Sport (CAS) for arbitration. However, CAS rejected the appeal and mandated the club to comply with FIFA’s ruling, resulting in a fine and compensation totaling $73,000 owed to FC Banik Prievidza.”

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