Football agent's claim against Chelsea director stayed for arbitration

Background and Claims

The High Court was presented with a case involving Saif Alrubie, a football agent, who brought claims against Chelsea Football Club Limited and its former director, Marina Granovskaia. The dispute arose from an alleged introduction agreement concerning the transfer of player Kurt Zouma from Chelsea to West Ham United. Mr Alrubie claimed he was entitled to a commission based on the transfer fee exceeding £30 million, a claim disputed by the defendants.

Allegations and Proceedings

Mr Alrubie alleged that through email and instant message exchanges with Ms Granovskaia, an agreement was reached entitling him to a commission. However, Chelsea and Ms Granovskaia denied such an agreement existed. The transfer eventually occurred with a fee exceeding the threshold, but Mr Alrubie claimed he was unaware of the final amount and subsequently sought commission payment, which led to a series of legal and personal confrontations.

Legal Context and Arbitration Application

Ms Granovskaia applied for a stay of the proceedings under section 9 of the Arbitration Act 1996, arguing that the matter was subject to arbitration under Rule K of the Football Association's rules. The court examined whether both parties were bound by an arbitration agreement and whether the dispute fell within its scope.

Horizontal Contractual Effect

The court deliberated on whether the FA rules had horizontal effect, meaning they created enforceable obligations between participants such as Mr Alrubie and Ms Granovskaia. The court concluded that both parties, having expressly agreed to the FA rules, were bound by them, thus making Rule K applicable to their dispute.

Timing and Participant Status

Mr Alrubie argued that Ms Granovskaia, having left Chelsea, was no longer a participant and thus could not invoke arbitration. The court rejected this, stating that the right to arbitrate accrued when the dispute arose, which was while she was still a participant.

Scope of Arbitration Agreement

The court found that the dispute, concerning the alleged inducement of breach of contract, fell within the broad scope of Rule K, designed to cover disputes between participants in football-related activities.

Conclusion and Costs

The court granted the stay, mandating that the dispute be resolved through arbitration. Additionally, Mr Alrubie was ordered to pay Ms Granovskaia's costs on an indemnity basis, reflecting the breach of the arbitration agreement by initiating court proceedings.

Learn More

For more information on arbitration agreements and their enforcement, see BeCivil's guide to UK Employment Law.