The highest European court has ruled that some of FIFA's transfer regulations are "in breach of European Union law". This could have far-reaching consequences for the transfer market.
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- FIFA is in breach of EU law with some of its transfer regulations. This was decided by the European Court of Justice on Friday.
- International newspapers are talking about a "groundbreaking ruling". FIFA will have to seriously ask itself how it can adapt its transfer rules in the future.
- The ruling could cause a revolution and lead to players being able to leave a club regardless of the length of their contract - free of charge.
- However, FIFA is of the opinion that "the legality of the most important principles of the transfer system has once again been confirmed by today's ruling".
A "groundbreaking judgment"? A "revolution" for the transfer system, even a "Bosman 2.0"? The ruling by Europe's highest court in the case of former French professional Lassana Diarra has provoked an enormous response in world football. While FIFA, the world governing body concerned, even sees its statutes confirmed in essence, critics of the regulations see far-reaching changes to come. Who is right?
What does the ECJ ruling say?
The European Court of Justice ruled that "certain FIFA provisions on international transfers of professional football players" violate EU law. Specifically, it concerns the case where a player terminates his employment contract prematurely "without just cause" - as Diarra was accused of doing by his ex-club Lokomotiv Moscow. According to FIFA rules, a penalty is then due and a ban is also possible. Diarra was ordered to pay 10.5 million euros back in 2014. A crucial point: the club that wants to sign the player is currently also liable for the fine.
According to the ECJ, these regulations go too far. Specifically: "Those provisions impose considerable legal, unforeseeable and potentially very significant financial and sporting risks on those players and the clubs wishing to recruit them." This is not compatible with the player's right to freedom of movement as an employee or with competition law, as the court ruled according to the press release.
"It's not about the player no longer being subject to sanctions, but about liability for the new club," Paul Lambertz, lawyer and sports law specialist, told Deutsche Presse-Agentur. One possible consequence: FIFA will have to change the paragraph in its statutes according to which the new club is also held liable.
What do the parties involved say?
Diarra and his lawyers started the case and sued FIFA and the Belgian Football Association for damages and loss of earnings amounting to six million euros. His transfer to Sporting Charleroi in Belgium did not materialize after the dispute in Moscow. The case has occupied world football for years; Diarra moved to Moscow in 2013, followed by the rift a year later.
The former international's lawyers celebrated a "major victory" according to the press release. The law firm "Dupont - Hissel" was once the main party involved when a ruling in the case of Jean-Marc Bosman overturned the transfer fee at the end of the contract period. The players' union Fifpro, which also stood up for Diarra, announced that the ECJ had made an "important ruling on the regulation of the labor market in football that will change the landscape of professional football".
FIFA, on the other hand, wrote that it was "convinced that the legality of the main principles of the transfer system has been reconfirmed by today's ruling". Only two paragraphs of two articles of the FIFA regulations were called into question. The ruling will now be analyzed. A total of 29 articles are listed in the 102-page FIFA transfer document.
What impact will the ruling have?
"I don't see Bosman 2.0. The sanctions for the player are still in order if contracts are terminated without good reason," said Lambertz. In England, the Guardian newspaper wrote of a landmark ruling. FIFA will now "have to ask itself seriously how it can adapt its rules in future, or whether it can at all". The Italian newspaper "Gazzetta dello Sport" wrote that the ruling could cause a revolution and lead to players leaving a club regardless of the length of their contract.
The specific case surrounding Diarra will now initially be returned to the Belgian court, which had appealed to the ECJ. However, the ruling of the highest European court, which was not published in full on Friday, is binding.
However, it remains to be seen whether football contracts, which are limited in time and rarely contain clauses for ordinary termination, will be fundamentally changed. The court also ruled that restrictions on the free movement of professional football players can be justified by the aim of ensuring that the competitions function - because this maintains a certain consistency in the teams of professional football clubs. However, in Diarra's case, "the provisions in question (...) appear to go beyond what is necessary to achieve that objective in a number of respects".
