Sunderland are being ordered to pay a former player of theirs a total sum of £4,770,000 following the conclusion of a long-running saga.
Ricky Alvarez was an ex-Black Cats player between the years of 2014 and 2015, joining only loan initially from Inter Milan, and was then suppose to join them permanently.
The 32 year old midfielder had taken the League One club to the Court of Arbitration for Sport in a dispute over the loss of earnings, with the case going on for many years now.
🗣 Sunderland ordered to pay ex-Inter Milan midfielder Ricky Alvarez £4,770,000
— Sunderland Echo SAFC (@sunechosafc) January 15, 2021
The Court of Arbitration for Sport have confirmed to the Sunderland Echo that the final decision on Alvarez’s appeal was taken on the 1st of December 2020.
Following on from his challenge, which was partly upheld, the compensation figure owed to Alvarez has finally been set at £4,770,000. Ouch.
In reply to questions made by the Echo, a Court of Arbitration for Sport spokesperson said: “The Court of Arbitration for Sport (CAS) issued the final award in the matter CAS 2018/A/5925 Ricardo Gabriel Álvarez v. Sunderland AFC on 1 December 2020.
“The appeal filed on 24 September 2018 by Ricardo Gabriel Álvarez against the decision issued on 7 June 2018 by the FIFA Dispute Resolution Chamber was partially upheld.
“The Challenged Decision was confirmed, save for paragraph 3 of the operative part, which now reads as follows:
“Sunderland AFC has to pay to Ricardo Gabriel Álvarez compensation for breach of contract in an amount of GBP 4,770,000 gross (four million seven hundred seventy thousand British Pounds Sterling.”
Sunderland are set to be taken over by a 23 year old named Kyril Louis-Dreyfus.
He is expected to be the majority shareholder this month, subject to the owners’ and directors’ tests being completed.
He’s signed the dotted line to replace Stewart Donald in purchasing his majority shareholding and will become chairman. What were you doing at 23 huh?
His family founded the Switerzland-based Louis-Dreyfus group in the 19th century and owned Marseille for 10 years before selling it in 2016.
Louis-Dreyfus, along with his twin brother, is one of three heirs to his father’s fortune after his death in 2009 and is estimated to have a trust fund worth more than £2bn. His mother remains a minority shareholder in Marseille.
The case regarding the former Inter Milan star was listened to and the decision came at the start of December, three weeks prior to the takeover being revealed.
Sunderland themselves have not commented on the latest development of the Alvarez saga.
He was expected to join Sunderland permanently in 2015 following a loan deal, however the club tried to pull out of the arrangement due to an injury picked up by the player.
A lengthy legal battle with Inter Milan played out, with Sunderland claiming the agreement to sign Alvarez on a permanent deal was invalid because of Alvarez’s injury issues.
However a ruling by the Court of Arbitration for Sport meant that the club had to pay Inter Milan £9m, plus more than £300,000 in interest. Christ, now they’ve got to pay out an extra £4.7m.
A separate claim was put forward by Alvarez, which relates to a time which the two clubs were in a state of state of a quarrelsome disagreement over his future, and in that period, he reckons he lost out on wages.
An agreement over a settlement was finally reached, then Donald announced that Alvarez was looking to secure a higher sum, with the final fee now confirmed.
Fans reacted after seeing that Sunderland have been ordered to pay their former player £4,770,000…
@dc_laws: At least it is done now and was known before the takeover, so will have been taken into account when thinking about budgets etc.
@justpassing73: Please tell me this disastrous farce is over
@S1mpson: There goes the transfer budget, hello League One 21-22
@manxmackem: Looks like we’ve broken the League 1 salary cap 😡
@John67684101: Its unreal how he can claim unpaid wages when he signed for a club and was paid anyway..this shows how bad we have been ran since quinn left the club…terrible terrible management
@Collings1995: Absolute farce for all involved #SAFC
@ben3373: Unbelievable – how much has this cost us up to now. Raging this is still going on. We would’ve been better off signing him when we were supposed to instead of going back on deals and using injuries as excuse. Horrendous management!!!!
@snaith_76: Alvarez. The player that just keeps taking
@JamesPearson25: Surely they don’t have this money lying around
@joelrobson97: £2m to loan him, £9m to buy him , £1.25m for 6 months claimed wages, £300,000 to his current club, £1.6m in wages during his loan season, And £6m for the ‘loss of wages’ ~£20m for a bloke who made 15 appearances for us over 7 months 5 years ago
@Anth_Hughes: For Fucks Sake!
@OscarBrownsword: It just gets better. We really are the ‘banter’ club. #SAFC
@Leedslad15: This is Leeds paying out over Augustin then
@Peterdagv5: He could probably buy Sunderland now
@JustBrowsingTa: The year is 2032. Ricky Alvarez has just won the ownership of the Stadium of Light after Sunderland lose an appeal. 95 year old SAFC manager Howard Wilkinson says “the future looks bleak but if we keep working hard we might just scrape the National League North playoffs”
@AccountantPaul: will Ricky accept Will Grigg, Danny Graham, and £2m?
@TheMightyNews: He probably worth more than us now
@MattSummerhill: £4.77m compo to a player I can’t remember existing. Tough for a Div 3 team that
@SheffWedWOTMT: Has the potential new owner factored that in?!
@mikehwalton: Depends on how good his due diligence has been I guess.
@LBrennan89: Sunderland’s dealing of the Alvarez situation was hideous from start to finish. Those responsible for letting what happened happen shouldn’t work in sport again
@MarkaMackem: Fucking hell