Case Law[2025] ZAGPJHC 844South Africa
Mamelodi Sundowns Football Club (Pty) Ltd v Moira Tlhagale Sport Marketing and Management (Pty) Ltd and Another (25792/2021) [2025] ZAGPJHC 844 (19 August 2025)
High Court of South Africa (Gauteng Division, Johannesburg)
19 August 2025
Judgment
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## Mamelodi Sundowns Football Club (Pty) Ltd v Moira Tlhagale Sport Marketing and Management (Pty) Ltd and Another (25792/2021) [2025] ZAGPJHC 844 (19 August 2025)
Mamelodi Sundowns Football Club (Pty) Ltd v Moira Tlhagale Sport Marketing and Management (Pty) Ltd and Another (25792/2021) [2025] ZAGPJHC 844 (19 August 2025)
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sino date 19 August 2025
FLYNOTES:
CONTRACT
– Claw back clause –
Enforceability
–
No
written agreement releasing defendants from clawback obligations –
No evidence that media statements reflected such
an agreement –
Breach defence – Unsupported by evidence of intolerable
working conditions or employer’s
failure to honour
contractual obligations – No unfair discrimination –
Clawback clauses were reasonable and clear
– Voluntarily
accepted with legal advice – Failed to prove mutual
termination or breach – Application granted.
REPUBLIC OF SOUTH
AFRICA
N THE HIGH COURT OF
SOUTH AFRICA,
GAUTENG LOCAL
DIVISION, JOHANNESBURG
CASE NO: 25792/2021
(1)
REPORTABLE: YES
(2)
OF INTEREST TO OTHER JUDGES: YES
In the matter between:
MAMELODI
SUNDOWNS FOOTBALL CLUB (PTY) LTD
Plaintiff
AND
MOIRA TLHAGALE SPORTS
MARKETING AND
MANAGEMENT
(PTY) LTD
First Defendant
PITSO
JOHNNY HAMILTON MOSIMANE
Second Defendant
JUDGMENT
MIA
J:
INTRODUCTION
[1]
The plaintiff, Mamelodi Sundowns Football Club (Pty) Ltd (Sundowns),
is a professional South African football club affiliated
to the
National Soccer League. The second defendant (Mr Mosimane) was
employed as the head coach of the plaintiff for three consecutive
terms, the contracts ran from 2012 to 2016, 2016 to 2020 and
20 May 2020 envisaged to end in May 2024. The Mr Mosimane
resigned on 30 September 2020. The first defendant, Moira
Thlagale Sports Management and Management (Pty) Ltd (Thlagale
Sports
Marketing (TSM)) was appointed as Mr Mosimane’s intermediary.
Sundowns seeks to recover from the defendants, jointly
and severally,
the amount of R7 912 905, being a portion of the commission
paid to TSM, plus interest at the prescribed
legal rate and costs of
suit. The claim relates to the last contract which commenced on 20
May 2020 and was envisaged to conclude
at the end of May 2024. The
action is defended.
[2]
The defendants raised several defences. They pleaded that the court
lacked jurisdiction, that the agreement was terminated
by mutual
agreement, that there was a breach of the agreement between Sundowns
and the second defendant amounting to constructive
dismissal, and
that the intermediary agreement and the employment agreements were
constitutionally unenforceable as it contravenes
various rights
protected by the Constitution.
BACKGROUND
FACTS
[3]
Ms
Moira Thlagale is the sole director and shareholder of TSM. It is
common cause that the TSM was the intermediary when the contract
was
concluded between him and Sundowns in May 2020. TSM received a
commission of R8 632 260 on 29 May 2020
upon finalisation of the contract between Sundowns and Mr Mosimane
for
the period May 2020 to May 2024.
The
contract agreement provided for the payment of a monthly salary and
bonuses payable upon performance to Mr Mosimane. It was
a part of the
agreement that he would furnish pre-match reports and attend meetings
as required.
[4]
Mr
Mosimane left Sundowns in September 2020, four months into the
contract, which should have endured for 48 months. After the contract
was terminated, Mr Mosimane accepted a contract with a North African
Football Club. Six months after the termination of the agreement,
Sundowns claimed the amount of R7 912 905 from the
defendants. The claim flows from clause 1.1.3 of the intermediary
agreement, which provides for the recovery of the portion of the
intermediary commission paid to TSM calculated for the balance
of the
contract remaining, which Mr Mosimane did not serve with Sundowns.
The formula for calculating the amount is set out in
clauses 1.1.3.1
and 1.1.3.2 of the intermediary agreement. A similar provision is
found in clause 6.5 in the contract concluded
between Sundowns and Mr
Mosimane. It provides for the recovery of a portion of the commission
paid to the intermediary calculated
from the date of termination of
Mr Mosimane’s contract, i.e. September 2020, until the end of
May 2024. The clause provides
that the Mr Mosimane agreed to be
jointly and severally liable for the repayment of that portion of the
commission that was paid
upfront to the intermediary for the period
that he was not employed by Sundowns for the full 48-month period.
The clauses in each
agreement were referred to as the “clawback”
clauses.
[5]
The intermediary agreement providing for the upfront payment of
commission in the amount of R8 623 260.00 to TSM also
provided in
Clause 1.1.3 of the agreement:
“
1.1.3. If for
whatever reason, as governed or provided for the employment contract
of the Head Coach, he (the Head Coach) does not
continue to be
employed by Sundowns then.
1.1.3.1. Sundowns will
not recover the commission paid for the period of his employment
contract that has expired, but
1.1.3.2 Sundowns shall be
paid back within a period of 6 months, the commission paid for the
remaining period, when the Head Coach
will not be employed by
Sundowns (For example; the duration of the Head Coach’s
Employment Contract is 48 months, if the
Head Coach were to leave the
employ of Sundowns as governed or provided for by the employment
contract of the Head Coach at month
36 for instance, Sundowns will
not recover the commission paid for 36 months, but shall be paid back
the commission on the balance
of the contract period, being 12
months.”
[6]
Mr Mosimane’s contract with Sundowns provides in clause 6.5
that:
“
6.5 The Club
agrees to pay a 10% (ten percent) agent’s commission to Moira
Tlhagale Sports Marketing and Management (Pty)
Ltd (
Moira
Sports Marketing
)
for the entire contract period in advance. The terms of commission
are contained in a separate agreement between the plaintiff
and Moira
Sports Marketing known as the “Intermediary Agreement”.
In terms of this agreement, in the event of any early
termination of
this Employment Contract prior to 31 May 2024, for whatever reason, a
pro rata portion of the agent’s commission
in respect of the
remaining period, when the Head Coach will not be employed by the
Club, is subject to recovery by the Club. Notwithstanding
the terms
of the Intermediary Agreement, the Employee undertakes and agrees to
be jointly and severally liable for any and all
payments due to the
Club in terms of the Intermediary Agreement.”
[7]
At
the outset, the parties had agreed that Sundowns bore the onus of
proving paragraphs 13-15 of their particulars of claim. The
defendants bore the onus in respect of their special plea
[1]
and their plea
[2]
.
ISSUES
IN DISPUTE
[8]
The issues for determination are:
8.1.
Whether Sundowns proved its claims for recovery of the amount of
R7 912
905.
8.2.
Whether the court has jurisdiction over the dispute.
8.3.
Whether Sundowns’ claim was extinguished when the parties
agreed to terminate
the employment contract of the second defendant,
in September 2020, having the effect that the clawback clauses in
both written
agreements were cancelled, and the defendants were not
expected to make any payments in terms of the clawback clauses.
8.4.
Whether there was a breach of the agreement between Sundowns and Mr
Mosimane,
such that he was constructively dismissed and that this
released the defendants from having to repay any commission paid in
advance.
8.5.
Whether the agreements concluded with the defendants were
constitutionally
enforceable.
[9]
Dr Rejoice Simelane and Mr Makhanye testified on behalf of Sundowns.
[10]
Mr Makhanye’s evidence dealt with the circumstances around the
negotiation of the contracts and in particular the
contract of
employment negotiated to commence in December 2012. This evidence
highlighted that TSM was not involved in the negotiation
of that
contract. He confirmed the term of the contract concluded from May
2020 to May 2024 which provided for a 48-month contract
of
employment. His evidence clarified the context of negotiations which
resulted in the inclusion of clause 6.5 of the employment
agreement
and clause 1.1.3 of the intermediary agreement. He described the
circumstances around the re-negotiation of the contract
with the
second defendant and how the plaintiff conducted its relationship
with the defendants and its general operations. His
evidence
elucidated that the Sundowns only negotiated with Mr Mosimane after
they were requested by him to do so in relation to
the contract
commencing in May 2020.
[11]
Dr Simelane gave evidence on her negotiation and communication with
the Ms Thlagale representing TSM regarding the agreement
as well as
the circumstances after the termination and the extent of her
knowledge about other intermediary agreements.
[12]
Ms Thlagale was the only witness called by the defendants. Ms
Thlagale’s evidence related to the negotiations with
Sundowns,
which included confirming Mr Mosimane’s meeting with Mr
Motsepe. It is evident from Ms Thlagale’s evidence
and the
correspondence between the intermediary and Mr Mosimane that Ms
Thlagale reached out to Mr Mosimane to finalise the broad
agreement
reached between Mr Mosimane and Mr Motsepe. Ms Thlagale also insisted
that Sundowns communicate with her as Mr Mosimane’s
intermediary in relation to the renewal of Mr Mosimane’s
contract. Sundowns acknowledged her correspondence and
confirmed
that they would engage with
TSM to ensure that the process remained fair and that TSM was treated
equitably
. (My underlining.) The
communication thereafter continued between TSM and Sundowns
pertaining to Mr Mosimane’s employment
contract and the
intermediary agreement.
[13]
When the contract was sent to TSM for consideration, it requested the
agreement be sent in a format which enabled tracked
changes. This did
not occur. The contract was concluded with the final version
including the clawback clauses despite TSM indicating
that it was
unsatisfactory and should be removed. When the contracts were
eventually signed, the clawback clauses were present
in both the
employment contract signed by the Mr Mosimane as well as the
intermediary contract signed by TSM. Ms Thlagale indicated
that TSM
was not able to negotiate for the removal of the clawback clauses in
either contract. The reason furnished for not negotiating
further was
because Mr Mosimane, wanted to return to the field to coach and was
willing to sign the agreements which included the
clawback clauses.
[14]
Ms Thlagale testified that she discussed her concern about the
clawback clause with other intermediaries when Sundowns
sought to
recover monies from TSM. During their discussions other
intermediaries informed her that their contracts did not include
clawback clauses which provided for repayment of a part of the
commission that had been paid upfront. The defendants introduced
agreements that Sundowns concluded with two intermediaries to
demonstrate the differences between those contracts and the contracts
concluded with them.
LACK
OF JURISDICTION
[15]
It is appropriate to deal with the issue of jurisdiction at the
outset.
[16]
Clause 28.4 of the Employment Agreement provided that:
“
This
agreement is governed by and shall be construed in accordance with
the laws of the Republic of South Africa and the FIFA Statutes
and
Regulations. Any and all disputes will be submitted exclusively to
the Premier Soccer League Dispute Resolution Chamber.”
[3]
The
defendants placed reliance upon the above clause as well as clause
7.1 of the intermediary agreement to support their defence
that this
court cannot determine the dispute.
[17]
Clause 7.1 provides:
“
Any
dispute, difference or question which may arise at any time hereafter
between the parties will be referred to the exclusive
jurisdiction
of:
7.1.1
the NSL to be dealt with and determined by arbitration before the
Dispute Resolution Chamber of the NSL in accordance
with and subject
to the then applicable provisions of the NSL Handbook; or
7.1.2
the High Court of South Africa should the Dispute Resolution Chamber
of the NSL not have jurisdiction over the
dispute or difference, or
is unable to deal with the dispute or difference for any reason
whatsoever”
[18]
The defendant’s reliance on the special plea evinces that the
dispute ought to have been determined by the Dispute
Resolution
Chamber of the Premier Soccer League in terms of the National Soccer
League Handbook (NSL handbook). The NSL handbook
is comprised of the
Constitution and the League Rules.
[19]
Article 1 of the League Rules defines the scope of application and
indicates that the Rules:
“
[A]
Apply to every match and competition organised by the League and to
any act or conduct required by the NSL Handbook, and to
any breach
thereof.”
[4]
The
dispute before this court does not relate to a match or competition
organised by the League or a breach thereof. Therefore,
the League
Rules are not applicable.
[20]
The Constitution of the NSL Handbook defines the jurisdiction and
powers of the Dispute Resolution Chamber.
[21]
In terms of Article 23.1.1, the Dispute Resolution Chamber “is
an independent arbitration tribunal vested with
authority to
adjudicate
disputes other than those
of a disciplinary nature or which are status matters arising from
international transfers.”
The
Dispute Resolution Chamber obliges the NSL, member clubs and players
to refer disputes to it for resolution.
[5]
[22]
In considering whether this court has jurisdiction, I have
regard to article 23.2 of the Constitution of the NSL which provides:
“
23.2
Jurisdiction
23.2.1
The Dispute
Resolution Chamber will have jurisdiction over, inter
alia
determination of the following issues or disputes: -
23.2.1.1
disputes between Member Clubs;
23.2.1.2
employment related disputes between Member club and player;
23.2.1.3
employment related disputes
between a Member Club, a Coach and
any other employee who is part of the Member Club’s Technical
Team;
23.2.1.4
employment related disputes between a Member club Official and a
Member Club;
23.2.1.5
training and development compensation and solidarity and or payment
disputes.
23.2.1.6
The Dispute Resolution Chamber will not have jurisdiction in respect
of issues
or disputes that may arise as between parties that are not
subject to the jurisdiction of the League such as “agents”
or intermediaries as they are now described.”
[23]
Sundowns’ claim against TSM, a company and intermediary, does
not fall within the jurisdiction of the Dispute Resolution
Chamber.
This is clearly iterated in article 23.2.1.6 of the Constitution. The
Dispute Resolution Chamber thus has no jurisdiction
in the dispute
between Sundowns and TSM, as the dispute is explicitly excluded in
Article 23.2.1.6 indicated above.
[24]
The claim against the Mr Mosimane is similarly considered in terms of
Article 23.2 of the Constitution. He left Sundowns
in September 2020
to join a North African Football Club. When Sundowns issued the
demand for the repayment of the agent’s
fee in terms of clause
6.5 of the employment agreement with Mr Mosimane, he was no longer
employed by the Club. Having regard to
the evidence before me, Mr
Mosimane did not coach a team that was subject to the NSL after he
left Sundowns in September 2020.
Currently, he is not the coach of
any team subject to the NSL. The action herein was issued in May
2021, when he fell outside the
jurisdiction of the NSL and the
Dispute Resolution Chamber thus had no jurisdiction.
[25]
Sundowns’ claim against Mr Mosimane in terms of the clawback
clause is for the repayment of part of the intermediary’s
commission. It is not an employment related dispute between Sundowns
and Mr Mosimane in that it does not pertain to his rights,
duties or
entitlements as an employee.
[26]
In addition to the dispute not being employment related or covered in
any of the sub articles in 23.2, the parties disagree
on the forum
which has jurisdiction. This court has jurisdiction where there is a
dispute between the parties that is not capable
of resolution. In
addition to the dispute relating to the applicable forum, the
defendants have raised constitutional issues which
invoke this
court’s inherent jurisdiction where constitutional issues have
been raised. In any event, since the Dispute Resolution
Chamber’s
jurisdiction over TSM is expressly excluded, it is convenient and
necessary that the entire claim be adjudicated
by a forum that has
jurisdiction over all the parties. This obviates the need for the
same matter to be heard by different fora;
an unnecessary duplication
and costs in the resolution of the disputes.
[27]
This court has jurisdiction to determine the dispute.
TERMINATION
BY MUTUAL AGREEMENT
[28]
The defendants’ defence that the agreement was mutually
terminated and thus released them of repayment of the commission
is
based on the press statements issued by Sundowns on behalf of Mr
Mosimane. Ms Thlagale was the only witness who testified on
this
aspect. Her evidence was that a meeting occurred with Mr Motsepe
where Mr Mosimane indicated he did not wish to continue with
Sundowns. Mr Motsepe accepted that Mr Mosimane no longer wished to
continue his employment as the coach of Sundowns. Neither Mr
Motsepe
nor Mr Mosimane were called to clarify their discussion and any
agreement around the termination of the contract and the
terms
thereof. There is no record of communication regarding any
discussions or confirmation that the defendants were released
from
the requirement to pay back part of the commission in terms of the
clawback clause.
[29]
During her evidence, Ms Thlagale referred to the press statement
released on 30 September 2020, which the defendants
rely upon for
their release from the contracts. The press statement reflects an
amicable parting of ways from Sundowns and conveys
support for Mr
Mosimane’s pursuit of growth opportunities. The content of the
media statement indicates an announcement to
the public to explain
questions that might arise around Mr Mosimane’s departure four
months into the new contract. Whatever
discussions occurred between
TSM, Mr Mosimane and Mr Motsepe, the media statement did not indicate
that Sundowns and the defendants
were ill disposed to each other or
that Mr Mosimane was leaving due to unsatisfactory work conditions.
The reference to family
that arose during Dr Simelane’s and Ms
Thlagale’s evidence suggests that there was some intention to
deal with the
parting with grace and to ensure a continued
relationship in the future.
[30]
Both parties, through their media statements, communicated positive
objectives regarding Mr Mosimane’s departure
from Sundowns.
This served both parties’ interests concerning the public view
of the parties, as was evident from the evidence
of Ms Thlagale and
Dr Simelane. The press statements understandably reflected a positive
disposition, especially where Ms Thlagale
testified that the North
African club Mr Mosimane wished to work with was unwilling to make an
offer if Sundowns did not release
him. The press statements do not
mention or relate to the specific conditions pertaining to Mr
Mosimane’s departure and the
parties' obligations toward each
other.
[31]
The absence of communication between Sundowns and defendants
regarding the termination of the agreement and the operation
of the
clawback clause is telling. The silence around this and the absence
of communication does not allow for a conclusion that
the defendants
were released unless this was confirmed in writing. After Mr
Mosimane’s meeting with Mr Motsepe, prior to
the finalisation
of the 2020 employment contract, the TSM followed up with
communication to finalise details regarding the employment
contract.
At the commencement of negotiations relating to Mr Mosimane’s
employment contract the communication between TSM
and Sundowns was
aimed at ensuring the contract was concluded on favourable terms.
Given that TSM was unhappy about the clawback
clause it seems
apposite that it would follow up the exit meeting with Mr Motsepe
with communication to Sundowns to ensure the
parties had agreed on Mr
Mosimane’s departure and the terms applicable specifically the
clawback clause. Whilst TSM communicated
with Sundowns regarding the
press statement to be released upon the second defendant’s
departure, there was, however no evidence
of an agreement relating to
the non-operation of the clawback clause. What followed was that that
Sundowns issued a demand for
the proportional repayment of the
commission calculated in terms of the agreement after the departure
of Mr Mosimane.
[32]
The principle that a term
written in a contract that specifies that variation must comply with
formalities has consistently been
applied in our courts. The
agreements concluded with the defendants contain non-varying clauses
requiring a variation to be in
writing.
[6]
[33]
The Court observed in
HNR
Properties CC & another v Standard Bank of SA Ltd
[7]
:
“
The clause, of
course, requires that the release ‘be in writing’. This
does not mean that when construing the writing
it is impermissible to
have regard to the background circumstances or, in the event of
ambiguity, surrounding circumstances. Nonetheless,
in every case the
intention to release must appear from the writing itself. It may be
explicit or implicit. But if the latter,
the intention to release
must be apparent from the writing on an ordinary grammatical
construction of the words used or stated
differently, the release of
the surety must be a necessary implication of the words used. It is
therefore not permissible to import
into the writing, whether by
reference to background or surrounding circumstances or any other
source, an intention to release
which is otherwise not ascertainable
from the actual language of the document relied upon. If the position
were otherwise the very
object of the requirement of writing would be
frustrated.”
[34]
In the present instance, there is no written release from the
obligation. Regarding the surrounding circumstances and
on the
version of TSM that the discussion between Mr Mosimane and Mr Motsepe
afforded a release from the obligation to payback
a portion of the
commission in terms of the clawback clause, this discussion that
occurred between Mr Mosimane and Mr Motsepe was
not confirmed by
either of the two gentlemen. Ms Thlagale’s recollection
of the discussion relates to Mr Mosimane’s
complaint to Mr
Motsepe. There is no specific mention of the clawback clause being
discussed. In any event the communication which
followed this
discussion related to the content of media statements and not to the
release of defendants to repay the commission.
The extensive
negotiations prior to the contracts being signed is in stark contrast
to the negotiations upon the defendants exit
from the plaintiff as
the coach. The negotiations upon the defendants exit related to the
contracting party’s agreement that
care be taken to ensure Mr
Mosimane’s exit was managed sensitively.
[35]
In the absence of written communication evidencing an agreement to
release the defendants from the obligation to repay
the commission,
neither Mr Mosimane nor Mr Motsepe were called to testify on this
issue without a written variation referring
to the
communication or any verbal discussion reflecting an intention to
release the defendants from their obligations under the
clawback
clause, it cannot be concluded that there was a mutual agreement to
terminate the agreement in a manner that released
the defendants from
those obligations.
BREACH
OF AGREEMENT
[36]
The defendants contend that the working relationship between Mr
Mosimane and Sundowns deteriorated significantly and
to the extent
that Mr Mosimane found it intolerable to continue working for
Sundowns. To support this contention, Ms Thlagale referred
to
Sundowns requesting pre- and post-match reports after every match
instead of once per week as indicated in the Head Coach agreement.
A
further complaint was that Sundowns sent a letter on 7 September 2020
indicating that Mr Mosimane’s statements to the media
in a
post-match interview dishonoured Sundowns. On 15 September 2020, Mr
Mosimane was called into a disciplinary hearing for the
comments made
during the post-match interview on 5 September 2020.
Sundowns required him to issue a public statement
in which he
apologised. He refused to issue an apology. Instead he requested a
meeting with Mr Motsepe. Ms Thlagale was also present
at the meeting.
During the meeting Mr Mosimane indicated his unhappiness and Mr
Motsepe agreed that the agreement could be terminated.
As stated
above, neither Mr Motsepe nor Mr Mosimane gave evidence about this
meeting.
[37]
The defendants contend that the plaintiff failed to fully support Mr
Mosimane in fulfilling his duties under the agreement,
as outlined in
Clause 5.2 of the employment contract. In addition to the requests
for pre- and post-match reports, Mr Mosimane
complained about being
threatened with assault by Sundowns’ security personnel and
statements made by another employee threatening
the security of the
employment contract.
[38]
The threats appear to be related to interpersonal differences with
Sundowns’ employees, rather than Sundowns. There
is no
indication that these problems were communicated to Sundowns or
referred to the NSL for resolution with an unsatisfactory
outcome.
There is also no written communication from the defendants to
Sundowns that this conduct impacted on Mr Mosimane’s
performance or ability to continue working for Sundowns in terms of
the employment contract.
[39]
Mr Mosimane’s reliance on a deteriorating working relationship
is not supported by his response to the request
for daily pre- and
post-match reports. He had agreed and requested more time to furnish
these due to the time constraints and on
the field coaching
requirements.
[40]
The end of the employment
relationship between them appears to commence following the
disciplinary enquiry called to address the
statement made by him
during a media briefing. Sundowns held the view that the statement
brought disrepute to its employees and
supporters. Sundowns required
the issuance of an apology. He refused to issue an apology. In the
ensuing meeting with Mr Motsepe,
they agreed that their business
relationship should come to an end to ensure that they were able to
maintain family ties. TSM communicated
to Sundowns that the second
defendant had resigned.
[8]
Sundowns and Mr Mosimane issued statements in the media indicating
his departure.
[41]
The gist of Mr Mosimane’s statement indicated that he had left
Sundowns and its supporters and fans to pursue a
new challenge after
having contributed significantly to Sundowns’ substantial
success. He said, in the statement:
“
Whilst I had four
years remaining in my contract, this offer is a huge opportunity that
would not have come had I not had the privilege
to be part of the
team that lead Mamelodi Sundowns to winning the CAF Champions League
and reaching the World Cup Finals.
I am the first to admit
that in this journey there were mistakes and hiccups, but there were
more laughs, victory success and camaraderie.
And I take this to my
next destination- never to accentuate the challenges over the
achievements.
For all shortcomings I
apologise to the President and the Yellow Nation.”
The
defendant’s departure permitted the second defendant to accept
an offer made by the North African Football Club, Al-Ahly.
[42]
Consequently, whilst the Mr Mosimane experienced problems with some
employees, there is no correspondence on the record
or in the media
statement which suggests a breach of the employment agreement and
specifically Clause 5.2 of the agreement on the
part of Sundowns,
which resulted in Mr Mosimane’s resignation. In Mr Mosimane’s
media statement there is an acknowledgement
that there were errors,
but he underscores the triumphs which he states he was privileged to
lead. This view is publicly stated
and reflects his willingness to
furnish the pre and post-match reports and attend meetings which do
not support a version that
Sundowns did not support him.
[43]
I am unable to conclude that Sundowns breached the employment
agreement as averred by the defendants.
AGREEMENT
CONSTITUTIONALLY UNENFORCEABLE
[44]
The defendants alleged
that clauses 6.5 of Mr Mosimane’s contract and 1.1.3 of the
intermediary agreement are unreasonable,
unfair, and unenforceable.
Moreover, they contend that enforcing the clauses on the facts would
constitute a breach of sections
9, 10, 22 and 23 of the
Constitution
[9]
.
Discrimination
of Ms Thlagale
[45]
In seeking to demonstrate that the agreement was unfair and
unreasonable, Ms Thlagale testified that she was treated
differently
because she is a Black woman and Mr Mosimane’s wife. She stated
that she did not receive a commission after negotiating
the
agreements between Mr Mosimane anSundowns in 2012 and 2016. In her
view, any other intermediary in her position would have
been
compensated. To support this, she emphasised that white male
intermediaries were not treated in the same manner. She further
attributed the treatment she received to what she believed was an
instruction issued by Mr Motsepe.
[46]
Sundowns disputed this and countered this view with the explanation
that it was implausible that she would not receive
a commission for
2012 and 2016, where Mr Mosimane, as a professional, had access to
legal representation. It was not likely that
TSM would have tolerated
non-payment for services rendered by it. Dr Simelane explained that
the reason why Sundowns did not pay
a commission to an intermediary
for the negotiation of the 2012 and 2016 employment contracts with
the Mr Mosimane, was that they
were not aware that he had an agent at
that stage. Dr Simelane stated that Mr Mosimane informed them in 2020
that he had a new
agent representing him. He informed Sundowns that
TSM was his agent. Upon receiving this information, Dr Simelane
indicated that
Sundowns pursued discussions with TSM about the
renewal of Mr Mosimane’s employment contract and the commission
to be paid.
[47]
The defendants’ failure to produce any documents or
correspondence pertaining to employment agreement negotiations
conducted in 2012 and 2016 on behalf of Mr Mosimane, even though Ms
Thlagale said the documents existed relating to the 2012 and
2016
contracts lends credibility to Sundowns’ version that there was
no intermediary. It is inexplicable that TSM would forgo
a commission
for a contract it had negotiated. TSM successfully negotiated a
higher remuneration package for the Mr Mosimane than
he had
previously concluded and secured a favourable commission which was
10% of his package. By comparison, TSM secured a more
favourable
contract than the intermediaries represented by white males had
secured. The evidence presented by Ms Thlagale relating
to TSM being
treated differently focused her experience during the negotiations
with Sundowns and did not relate to TSM. TSM as
a juristic entity and
Ms Thlagale as a person are different. Even when considering that Ms
Thlagale conducted negotiations on behalf
of TSM, her favourable
results make it impossible to conclude that she or TSM were treated
differently to other intermediaries
to their prejudice, having regard
to the favourable agreement secured by TSM.
Unfair treatment
vis-à-vis other intermediaries
[48]
In respect of the unfair treatment Ms Thlagale stated that TSM was
treated differently when compared to other intermediaries.
The
defendants’ amended plea avers that the agreements concluded
between TSM and Sundowns, when compared to the agreements
concluded
between Sundowns and two companies that concluded intermediary
agreements with it, discriminate against TSM based on
race and
gender.
[49]
To prove the discrimination based on race and gender, the defendants
presented contracts concluded between the plaintiff
and other
intermediaries. The first was the contract between JDR Consulting and
the plaintiff, which provided for a commission
payable in three
instalments: the first instalment was payable upon submission of the
intermediary’s invoice, followed by
two further payments. The
second and third payments were paid each year upon the anniversary of
the assistant coach’s employment
contract. The contract did not
place any obligation upon the intermediary to repay any portion of
the commission upon termination
of the contract.
[50]
The same allegation of race and gender discrimination is raised
against Sundowns’ agreement concluded with AKP
Trading 79
Proprietary Limited (t/a Prosport International) (Prosport
International). The Prosport International agreement outlines
the
commission payable. When compared to the intermediary agreement
concluded with TSM, the Prosport International agreement does
not
contain a clawback clause and provides for the advance payment of the
commission. It does not place any obligation on the intermediary
to
repay the portion of the commission already paid if the employment
relationship between the coach and Sundowns is terminated
on any
ground before the expiration of the contract.
[51]
In response to the submission that Sundowns discriminated against
them based on race and gender as the negotiator for
Mr Mosimane,
Sundowns argued that Ms Thlagale is not TSM. The defendants conflate
Thlagale Sports Management (Pty) Ltd, the juristic
person, with Moira
Thlagale, the natural person. It was argued that this held true for
both JDR Consulting and Prosport International,
where the defendants
did not prove that the ownership and management of the two companies
reflected a composition that was predominantly
white and male among
their directors and shareholders. The comparison made by the
defendants was artificial. Thus, counsel for
Sundowns concluded, the
race of the intermediary is not conclusive as the basis for a
constitutional attack based on s 9 of the
Constitution.
[52]
I agree that the comparison does not prove discrimination based on
race especially where Ms Thlagale, a black woman negotiated
favourable contracts. The comparison based on the different juristic
entities having regard only to the race of the negotiators
ignores
factors such as the remuneration secured, when commissions were paid
and circumstances where the intermediary received
the full commission
even after an employee resigned in the middle of the contract period.
Comparison of the different agreements
do not lead to the conclusion
that the agreements are unfair and unreasonable to TSM based on race
or gender considering the first
defendant is a juristic entity. The
comparison does not serve the purpose intended by the defendants
where the amounts paid differed
when compared to other intermediary
companies and the terms of payment differed. TSM was paid a
substantially higher amount in
commission than the two companies
introduced by way of comparison and the amount was paid upfront.
Where commission was paid upfront
to the other intermediaries the
evidence did not indicate that the circumstances were the same. The
comparison is incomplete where
it is limited to only the race of the
directors of the other intermediaries.
[53]
In addition to Mr Mosimane’s increased income, TSM secured a
commission of 10% in comparison with the Prosport
International,
which received a commission which equated to 5% of the gross annual
remuneration of the second assistant coach.
The difference in
comparison appears to be to Mr Mosimane’s and TSM’s
benefit in terms of the commission. TSM’s
bargaining ability,
as demonstrated by the significantly higher gross annual remuneration
over the 48 - month term offer
secured for Mr Mosimane,
reflects a strong rather than a weak bargaining position. It is not
possible to draw a conclusion that
TSM was treated differently based
on race and gender to its detriment compared to other intermediaries.
It is apparent from the
comparison that both the commission and the
remuneration secured were favourable to both defendants compared to
what was secured
by other intermediaries.
Fairness
of recovery of monies in terms of clawback clauses
[54]
I now turn to considering the clauses the defendants aver are
unreasonable and unfair.
[55]
The initial versions of the plea indicate that clauses 1.1.3 of the
intermediary agreement and 6.5 of Mr Mosimane’s
agreement with
the Sundowns are unenforceable because they require TSM, in respect
of 1.1.3, to undertake an obligation to ensure
that Mr Mosimane
remains employed by Sundowns regardless of the circumstances. In
respect of clause 6.5, it requires Mr Mosimane
to assume liability
for repayment of a portion of the commission paid in terms of an
agreement he was not a party to, the agreement
concluded between TSM
and Sundowns.
[56]
A useful starting point
in considering the unreasonableness of the clauses is to consider the
view expressed in
Beadica
231 CC & others v Trustees for the time being of the Oregon Trust
& others
[10]
where the Court said:
[81]
The rule of law requires that the law be clear and ascertainable.
..The application of the common-law rules of contract should
result
in reasonably predictable outcomes, enabling individuals to enter
into contractual relationships with the belief that they
will be able
to approach a court to enforce their bargain. It is therefore vital
that, in developing the common law, courts develop
clear and
ascertainable rules and doctrines that ensure that our law of
contract is substantively fair, whilst at the same time
providing
predictable outcomes for contracting parties. This is what the rule
of law, a foundational constitutional value, requires.
The
enforcement of contractual terms does not depend on an individual
judge's sense of what fairness, reasonableness and justice
require.
To hold otherwise would be to make the enforcement of contractual
terms dependent on the 'idiosyncratic inferences of
a few judicial
minds'. This would introduce an unacceptable degree of uncertainty
into our law of contract. The resultant uncertainty
would be inimical
to the rule of law.
[57]
In considering the
agreements, the principle “pacta sunt servanda” is
applicable to the agreements. Where parties enter
into agreements
voluntarily these must be honoured. In
Beadica
[11]
,
the Court stated the following about the principle and its
relationship to constitutional values:
“
This Court has
emphasised that the principle of pacta sunt servanda gives effect to
the “central constitutional values of
freedom and dignity”.
It has further recognised that in general public policy requires that
contracting parties honour obligations
that have been freely and
voluntarily undertaken. Pacta sunt servanda is thus not a relic of
our pre-constitutional common law.
It continues to play a crucial
role in the judicial control of contracts through the instrument of
public policy, as it gives expression
to central constitutional
values.”
[58]
Whilst contracts must be
honoured, the Court noted further in
Beadica,
that the principle
pacta
sunt servanda
is
not the most important principle to be considered when deciding to
uphold or strike down contracts. A wide range of constitutional
values inform public policy in determining where to enforce a
contract or to strike it down. This requires a delicate balancing
exercise.
[12]
[59]
The Court went on to
discuss a second principle to be considered when considering whether
to strike down an agreement entered freely.
The principle of
perceptive restraint, the Court noted “has been repeatedly
espoused by the Supreme Court of Appeal.”
This requires a court
to exercise ‘perceptive restraint’ when considering
whether to invalidate a contractual clause
and should do so
“sparingly, and only in the clearest cases.”
[13]
The task of invalidating, or refusing to enforce, contractual terms
is encapsulated in the view that a “court will use the
power to
invalidate a contract or not to enforce it, sparingly, and only in
the clearest of cases.” At para [90] the Court
states:
“
However, courts
should not rely upon this principle of restraint to shrink from their
constitutional duty to infuse public policy
with constitutional
values. Nor may it be used to shear public policy of the complexity
of the value system created by the Constitution.
Courts should not be
so recalcitrant in their application of public policy considerations
that they fail to give proper weight
to the overarching mandate of
the Constitution. The degree of restraint to be exercised must be
balanced against the backdrop of
our constitutional rights and
values. Accordingly, the 'perceptive restraint' principle should not
be blithely invoked as a protective
shield for contracts that
undermine the very goals that our Constitution is designed to
achieve. Moreover, the notion that there
must be substantial and
incontestable 'harm to the public' before a court may decline to
enforce a contract on public policy grounds
is alien to our law of
contract. [footnote omitted]
[60]
In
Beadica,
[14]
the Court, citing
Barkhuizen
v Napier
[15]
determined that the
fairness and reasonableness of a contractual provision involves a
two-stage inquiry:
[36]
The majority judgment held that determining fairness in this context
involves a two-stage enquiry: 'The first is whether the
clause itself
is unreasonable. Secondly, if the clause is reasonable, whether it
should be enforced in the light of the circumstances
which prevented
compliance with the time limitation clause.'
“
[37] The first
stage involves a consideration of the clause itself. The question is
whether the clause is so unreasonable, on its
face, as to be contrary
to public policy. If the answer is in the affirmative, the court will
strike down the clause. If, on the
other hand, the clause is found to
be reasonable, then the second stage of the enquiry will be embarked
upon. The second stage
involves an inquiry whether, in all the
circumstances of the particular case, it would be contrary to public
policy to enforce
the clause. The onus is on the party seeking
to avoid the enforcement of the clause to 'demonstrate why its
enforcement would
be unfair and unreasonable in the given
circumstances'. The majority emphasised that particular regard must
be had to the reason
for non-compliance with the clause.”
“
The first stage
involves consideration of the clause itself. The question is whether
the clause is so unreasonable, on the face,
as to be contrary to
public policy. If the answer is in the affirmative, the court will
strike down the clause. If, on the other
hand, the clause is found to
be reasonable, then the second stage of the inquiry will be embarked
upon.”
[61]
I turn now to consider
whether the defendants have discharged the onus of demonstrating that
the enforcement of the clawback clauses
will be contrary to public
policy in the circumstances of this case. In seeking to avoid the
enforcement of a contractual term
the defendants must demonstrate
good reason for failing to comply with the clauses in each agreement.
The rationale for this is
explained in
Barkhuizen
v Napier
[16]
,
that it
may be that they could have complied. To permit the defendants to
avoid the consequences of the clauses may be contrary
to the doctrine
of pacta sunt servanda, visiting unfairness upon the plaintiff.
[62]
Where the defendants put up a defence that recovery in terms of the
clawback clauses would be contrary to public policy,
the reasons
advanced for their failure must be examined. The terms of the
clawback clause are clear in both agreements. The defendants
were
aware of its presence as they initially objected to the clauses.
However, upon considering Mr Mosimane’s wishes, both
contracts
were signed. The defendants had access to legal advice and had
consulted their legal representatives. Ms Thlagale signed
on behalf
of TSM having regard to Mr Mosimane’s wish to proceed with the
agreement. Whilst he was in dire need of a contract
in 2012, and
possibly wished to continue in view of the success achieved with
Sundowns, the contracts negotiated in 2020 considering
his positive
performance and the lucrative contract signed attest to the strength
the defendants had in negotiating the 2020 agreement.
Even though
there had been an earlier interest expressed by another club, he
wished to proceed with the agreement concluded with
Sundowns.
[63]
In
Coral
Lagoon Investments 194 (Pty) Ltd & another v Capitec Bank
Holdings Limited,
[17]
the Court observed that
“public policy is the basis on which courts may decline to
enforce contractual terms where the terms
or its enforcement would be
contrary to public policy
.”
[64]
The defendants’ reliance upon the agreement being unfair is
based on the employment contract and the intermediary
contract being
separate contracts. The defendants did not lead evidence to prove
that clause 6.5 of the contract was repugnant,
unfair, and
unreasonable, that it is contrary to public policy instilled with
constitutional values. The submission was made that
it was unfair and
unreasonable to expect Mr Mosimane to repay a portion of the
commission in terms of the agreement concluded with
TSM. Having
regard to the principles that agreements freely entered into should
be honoured and that the defendants had access
to legal
representation when concluding the agreement, the guidance afforded
to them suggested that they had insight into the agreement
and its
consequences. Sundowns paid Mr Mosimane a salary in regular payments.
He was aware of his obligation to repay a portion
of the
commission. He freely and willingly entered into the agreement with
Sundowns. The existence of a clawback clause is not
foreign to
contracts, especially where they find application in insurance
settings. Sundowns took proper measures to mitigate a
risk, before
paying a huge commission and running the risk that the coach could
desert them at anytime while the contract was still
extant, without
keeping the coach and his agent liable to pay back a portion of the
commission. The return is proportional to the
period left of the
contract upon termination. I am not persuaded that the agreement is
unreasonable and unfair as it finds application
to Mr Mosimane.
[65]
Mr Mosimane was held
responsible for the return of the commission paid to the intermediary
which constituted 10% of his remuneration
package. The submission
that it had nothing to do with the agreement between Sundowns and Mr
Mosimane and it was not fair to impose
on that agreement the
repayment of monies paid in terms of another agreement, namely the
intermediary agreement does not take account
of the fact that the
agreement was voluntarily entered into. This recognises “the
public policy imperative to enforce
contractual obligations that have
been voluntarily undertaken [and] recognises the autonomy of the
contracting parties and, in
so doing, gives effect to the central
constitutional values of freedom and dignity.”[footnote
omitted] This imperative provides
the requisite legal certainty to
allow persons to arrange their affairs in reliance on the
undertakings of the other parties to
a contract, and to coordinate
their conduct for their mutual benefit.
[18]
[66]
At the time the contract was signed, Mr Mosimane was aware of this
clawback clause and elected to sign the agreement
which afforded him
an increased salary and benefits. The agreement was beneficial to
him. He was aware of the consequences of signing
the agreement and
the rights and obligations it contained. In recognising the public
policy imperative to enforce contracts willingly
entered, Mr Mosimane
has not discharged the onus resting on him having regard to the facts
and circumstances of the case to show
that the enforcement of the
clause is contrary to public policy and is unfair.
[67]
In considering the clawback clause in the intermediary agreement, Ms
Thlagale stated that she was not satisfied with
the agreement and
requested that the clawback clauses be removed. The agreement was
signed at the behest of Mr Mosimane. The intermediary
agreement was
signed along with his contract of employment TSM had access to legal
advice as Ms Thlagale was consulting with her
legal advisors at the
time. She requested time to consult. As with the employment contract,
TSM was aware of the clawback clause.
Sundowns agreed to pay the
intermediary commission upfront. Whilst it was clear that they paid
other intermediaries upfront, the
amounts differed compared to the
commission paid to the first defendant. Of the two contracts
introduced by way of comparison,
the second contract paid the
commission at intervals. Whilst Ms Thlagale related the clawback
clause to her gender and race, the
clawback clause was applicable to
both the intermediary and employment contract where it applied
irrespective of gender. It is
also noteworthy that the commission was
paid to TSM a juristic company rather than to Ms Thlagale.
[68]
Upon considering the clawback clause in both agreements, where the
parties were aware of the clause in the intermediary
and employment
agreements and signed both agreements willingly, the parties’
freedom of contract must be considered. It is
not possible to
conclude having regard to the facts and all the circumstances that
the plaintiff treated the defendants differently
except that the
defendants secured a more lucrative commission and remuneration
packages. Sundowns’ intention to secure it
resources in the
event of an early termination of the contract is not unreasonable or
unfair.
COSTS
[69]
Regarding costs, Sundowns argued that both parties instructed their
attorneys to employ two counsel. Counsel for the
defendants agreed
regarding the scale of costs and that the matter is important to both
parties, notwithstanding that the amount
was not substantial. The
issue of constitutional rights raised by the defendants is important.
ORDER
[70]
Consequently, I make the following order:
1. The defendants
shall pay to the plaintiff, jointly and severally, the one paying the
other to be absolved, the sum of R7
912 905.00.
2. The defendants
are ordered to pay interest on the above amount at the rate of 7% per
annum from 10 May 2021 to date of
payment.
3. The defendants
are ordered to pay the costs of the trial, including the costs of the
application to compel, on Scale C
of the amended Uniform Rules of
Court and that such costs should include the costs of two counsel.
S C MIA
JUDGE OF THE HIGH
COURT OF SOUTH AFRICA
GAUTENG LOCAL
DIVISION, JOHANNESBURG
Appearances:
On behalf of the
plaintiff:
Adv V Maleka SC
Adv T Seroto
Instructed
by:
Bowman Gillfillan Inc
On behalf of the
defendants:
Adv. T Ngcukaitobi SC
Adv C Chanza
Adv T Dewey
Instructed
by:
Mabuza Attorneys
Date of
hearing:
29-31 April 2024;
1,2,3 May 2024;
3-4 June 2024;
4-5 December 2024
Date of
judgment:
19 August 2025
[1]
Defendants’ Plea, paragraphs
4-5
and 7-12.
[2]
Defendants’ Plea, paragraphs 15- 16.
[3]
Caseline:
001-46 to 001-47, para 2 of the amended plea.
[4]
Article 1 League Rules titled “
SCOPE
OF APPLICATION: SUBSTANTIVE LAW
”
.
[5]
Ndoro
& another v South African Football Association & others
[2018]
ZAGPJHC 74;
[2018] 3 All SA 277
(GJ);
2018 (5) SA 630
(GJ) (“
Ndoro
v SAFA
”
)
para 59.
[6]
Nyandeni
Local Municipality v MEC for Local Government and Traditional
Affairs & another
[2009]
ZAECMHC 28;
2010 (4) SA
261
(ECM) para 43.
[7]
HNR
Properties CC & another v Standard Bank of SA Ltd
[2003]
ZASCA 135
;
[2004] 1 All
SA
486 (SCA);
2004 (4) SA 471
(SCA) para 16.
[8]
Record, Caselines 011-27, Correspondence from the first defendant to
the plaintiff, attaching the letter of resignation of the
second
defendant.
[9]
“
9
Equality
(1) Everyone is equal
before the law and has the right to equal protection and benefit of
the law.
(2) Equality includes
the full and equal enjoyment of all rights and freedoms. To promote
the achievement of equality, legislative
and other measures designed
to protect or advance persons, or categories of persons,
disadvantaged by unfair discrimination may
be taken.
(3) The state may not
unfairly discriminate directly or indirectly against anyone on one
or more grounds,
including race, gender,
sex, pregnancy, marital status, ethnic or social origin, colour,
sexual orientation, age, disability,
religion, conscience, belief,
culture, language and birth.
(4) No person may
unfairly discriminate directly or indirectly against anyone on one
or more grounds in terms of subsection (3).
National legislation
must be enacted to prevent or prohibit unfair discrimination.
(5) Discrimination on
one or more of the grounds listed in subsection (3) is unfair unless
it is established that the discrimination
is fair.”
Section 10 of the
Constitution provides—
“
10 Human
dignity
Everyone has inherent
dignity and the right to have their dignity respected and
protected.”
Section 22 of the
Constitution provides—
“
22 Freedom of
trade, occupation and profession
Every citizen has the
right to choose their trade, occupation or profession freely. The
practice of a trade, occupation or profession
may be regulated by
law.”
Section 23 of the
Constitution reads—
“
23 Labour
relations
(1) Everyone has the
right to fair labour practices.
(2) Every worker has the
right-
(a) to form and join a
trade union;
(b) to participate in
the activities and programmes of a trade union; and
(c) to strike.
(3) Every employer has
the right-
(a) to form and join an
employers' organisation; and
(b) to participate in
the activities and programmes of an employers' organisation.
(4) Every trade union
and every employers' organisation have the right-
(a) to determine its own
administration, programmes and activities;
(b) to organise; and
(c) to form and join a
federation.
(5) Every trade union,
employers' organisation and employer have the right to engage in
collective bargaining. National legislation
may be enacted to
regulate collective bargaining. To the extent that the legislation
may limit a right in this Chapter, the limitation
must comply with
section 36 (1).
(6) National legislation
may recognise union security arrangements contained in collective
agreements. To the extent that the
legislation may limit a right in
this Chapter the limitation must comply with section 36 (1).”
[10]
Beadica
231 CC & others v Trustees for the time being of the Oregon
Trust & others
[
2
020] ZACC 13
;
2020 (5) SA 247
(CC);
2020 (9) BCLR 1098
(CC) at para 81
[11]
Beadica
231 CC & others v Trustees for the time being of the Oregon
Trust & others
[
2
020] ZACC 13
;
2020 (5) SA 247
(CC);
2020 (9) BCLR 1098
(CC) at para 83.
[12]
Beadica
at
para 87.
[13]
Beadica
at
para 88 see also
AB
and Another v Pridwin Preparatory School and Others
2019
(1) SA 327
(SCA) ([2018] ZASCA 150) at para 27
and
Coral
Lagoon v Capitec Bank
para
38.
[14]
2020
(5) SA p266; [2020] ZACC 13; 2020 (5) SA 247 (CC); 2020 (9) BCLR
1098 (CC).
[15]
[2007]
ZACC 5
;
2007 (5) SA 323
(CC);
2007 (7) BCLR 691
(CC) para 23–30.
[16]
Barkhuizen
v Napier
2007
(5) SA 323 (CC) (2007 (7) BCLR 691; [2007] ZACC 5)
[17]
[2022]
ZASCA 144
;
[2023]
1
All SA 1 (SCA) (24 October 2022) para 38.
[18]
Beadica
above
at para [92]
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