Real Madrid ordered to pay $1.19mn to Oman company

February 12, 2019

In a court ruling that is expected to have a far-reaching impact, Spanish football giant and one of the world’s best-known football clubs, Real Madrid, has been ordered to pay a compensation of more than US$1.19mn (RO459,535.752) to an Oman-based company, Zan for Events and Conferences, by an Omani court.

The ruling from the Council of Administrative Affairs for the Judiciary, First Instance Court (Commercial department) came out on December 16, 2018 after an appeal from Zan for Events and Conferences.

Besides the compensation, Real Madrid, a 13-time Champions League winner and a 33-time Spanish League winner, has been ordered to pay an additional RO1,000 as fee for the lawyer.

Said Shabibi

Speaking to Muscat Daily , Said al Shabibi, the general manager of the company, who had filed the case against the Spanish heavyweight in 2015 said, “My stand has been vindicated against Real Madrid on their breach of contract.

“My company suffered huge losses as the club failed to bring in the promised stars for the Oman Legends Cup, a game involving greats of Real Madrid and FC Barcelona.”

The match was played at the Sultan Qaboos Sports Complex (SQSC) on March 14, 2014.

Shabibi revealed that the compensation is only one part of his lawsuit against the Spanish powerhouse.

“We have another appeal wherein we have sought compensation from Real Madrid for failing to honour a commitment of starting a Real Madrid Academy. The Legends game was held to promote and announce the setting up of the academy.

“We were to announce the launch of the ambitious Real Madrid Academy project after the Oman Legends Cup. But to our shock and disappointment, we got to know that Real Madrid had inked a deal with another party in Oman for the academy a day ahead of the match.”

Shabibi added, “The verdict on that appeal is yet to come but we have all the documents and evidence citing the visit of top Real Madrid officials to Muscat to discuss the project. We also had a press conference announcing the plans for the match and academy in the presence of officials from the Spanish Embassy.”

Shabibi said that he has not heard anything from Real Madrid Club so far but the Spanish club has hired a local law firm - Al Tamimi Company - to represent them.

It has been learnt that the compensation verdict has been appealed to the higher court by the club’s law firm.

Shabibi said that he would ‘approach top government channels’ to help him get the compensation amount from the club.

On the lawsuit, Shabibi said that though they had not signed a deal to start the academy, there was a clear communication on record for the hosting of the Oman Legends Cup, which was ‘organised to promote the launch of the academy’.

“We have an official letter from the Real Madrid Club [Muscat Daily has a copy of it] with regard to the academy and the hosting of the Legends match,” said Shabibi, who suffered a lot of financial losses, after leading stars failed to turn up for the game, which was well-attended at SQSC.