Switzerland's supreme court has dismissed FIFA's "fundamentally unlawful'' threat to ban Brazilian midfielder Matuzalem from any football activity if he fails to pay ?11.86 million ($15.8 million) compensation owed to former club Shakhtar Donetsk.

The Swiss Federal Tribunal said Thursday it upheld Matuzalem's appeal because of a "manifest and serious attack on his rights'' by FIFA and the Court of Arbitration for Sport.

The federal court objected to FIFA's disciplinary panel giving Shakhtar authority to request Matuzalem's ban if he missed payments.

Matuzalem "would be delivered to the arbitrary power of his former employer, and his economic freedom would be limited to such an extent that the basis of its economic existence would be put in danger,'' the federal court said in a statement.

FIFA said in a statement to the Associated Press it would not comment on the verdict.

Matuzalem, who now plays for Lazio, and previous club Zaragoza are still liable for all the compensation, plus five percent annual interest. Zaragoza has entered bankruptcy protection with debts of more than ?110 million ($147 million), and is last in the Spanish league.