FIFA is in breach of EU law with some of its transfer rules. The International Football Association has suffered a defeat at the European Court of Justice.
The free movement of players granted by EU law and competition between clubs are restricted by the rules dealt with by the ECJ, according to a ruling by the highest European court (ECJ).
The background to this is a complaint by former French professional footballer Lassana Diarra. He was signed by the Russian club Lokomotiv Moscow eleven years ago. The collaboration ended after just one year - and Diarra demanded compensation.
The former international sued the club for outstanding wages. He claimed that the search for a new employer was proving difficult. Diarra justified this by stating that, according to FIFA regulations, any new club would be jointly liable for paying compensation to Lokomotiv Moscow if a contract with him was terminated without cause.
For this reason, a contract with the Belgian club Sporting Charleroi was not concluded. Diarra then sued FIFA and the Belgian Football Association for damages and loss of earnings amounting to six million euros. He argued that FIFA's transfer rules violated EU regulations on freedom of movement and competition. The Belgian court then referred the case to the ECJ.
Transfer rules burdened athletes and clubs
The judges there decided that FIFA's rules overstepped the mark. They burdened athletes and clubs "with considerable legal, unforeseeable and potentially very significant financial and sporting risks", according to a press release from the court.
Some rules could be justified by the fact that they ensure a certain degree of consistency in the teams. In this case, however, the rules appear to go beyond this, according to the judges.
The Belgian court must now decide on the specific case and implement the ECJ's guidelines. What happens next will depend on how the associations implement the ruling.
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