The European Union's top court ruled on Friday that certain FIFA rules on player transfers are in violation of European Union legislation concerning competition and freedom of movement. The ruling stems from a case brought by former France international Lassana Diarra, who challenged FIFA rules after a contract dispute with a club dating back to 2014.
The court found that FIFA's regulations, which hold players and clubs jointly liable for compensation if a player terminates a contract without 'just cause,' hinder the free movement of players and competition between clubs. This ruling could potentially lead to significant changes in the soccer market, allowing players to more easily terminate contracts and join new teams.
The global players' union FIFPro, which supported Diarra's case, stated that the ruling will have a transformative impact on professional football. However, any changes resulting from the ruling may take a couple of years to come into effect as the case is still ongoing in a Belgian court.
Diarra's legal battle began when his contract with Russian club Lokomotiv Moscow was terminated due to alleged pay cuts. He faced difficulties finding a new club due to FIFA rules on compensation. The court's ruling highlighted the legal, financial, and sporting risks imposed by the current rules on players and clubs.
The ruling has drawn comparisons to the landmark 1995 decision on Belgian footballer Jean-Marc Bosman, which revolutionized player transfers within the EU. If FIFA adjusts its rules to make it easier for players to terminate contracts, the traditional transfer market based on fees could be challenged, potentially benefiting wealthier clubs.
FIFA has expressed willingness to discuss adjustments to its transfer regulations in light of the court's ruling. While FIFA's rules aim to maintain squad stability and competition regularity, the court found that certain aspects of the rules exceeded what is necessary to achieve these objectives.
The court criticized FIFA for impeding cross-border competition between European clubs, emphasizing the importance of competition in the professional football sector. The ruling may pave the way for players affected by the illegal rules to seek compensation for their losses.
