Some FIFA rules on movement of players between clubs ‘contrary to EU law’

Some of FIFA’s rules on the movement of players between clubs are contrary to European Union law, the European Court of Justice (ECJ) has ruled.

The decision follows a referral from a Belgian appeal court in the case of former Arsenal, Chelsea and Portsmouth midfielder Lassana Diarra, who challenged some of FIFA’s rules after the termination of his contract with Russian club Lokomotiv Moscow in 2014.

He argued some of the rules imposed by football’s global governing body restricted his freedom of movement and breached competition law, and sued FIFA for damages.

Diarra argued his freedom of movement was restricted by FIFA rules (Rebecca Naden/PA)

His lawyers contested a rule which makes a club wishing to sign a player jointly liable for compensation to a player’s old club, and at risk of sporting sanctions, in cases where the player’s previous contract was terminated without just cause, on the grounds that it deterred Belgian side Charleroi from signing him.

They also challenged a rule which allows the national association of a player’s former club to withhold an international transfer certificate (ITC) where there was a dispute, which they said also hindered the move.

A press release from the ECJ issued on Friday morning said the court had found the contested rules were contrary to EU law.

“The rules in question are such as to impede the free movement of professional footballers wishing to develop their activity by going to work for a new club,” the court release stated.

The release went on to say the court found that while some restrictions on movement may be justified to regulate competition between clubs and to ensure contractual stability in playing squads, the court felt the rules in question went “beyond what is necessary to pursue that objective”.

The full judgement will be published later, but the ruling as relayed in the release would appear to oblige FIFA to change the contested rules, though to what extent – and how significant this will ultimately be for the transfer market – remains to be seen.

On the face of it, if the rules provide greater freedom of movement it would make it easier for players in dispute with their current club to move to a new one.

The ruling will now be referred back to the appeal court in Mons to inform its decision in Diarra’s specific case.

Diarra’s legal team, led by Jean-Louis Dupont who helped bring about the Bosman ruling in 1995 which created free agency for players, described the decision as a “total victory”.

#FIFPRO's statement on the judgement of the European Court of Justice in the case of Lassana Diarra vs FIFA. pic.twitter.com/jfQoXrLNXx
— FIFPRO (@FIFPRO) October 4, 2024

Dupont’s firm said in a statement that the decision “paves the way for a modernisation of governance, in particular through the use of collective bargaining between employees and employers”.

World players’ union FIFPRO welcomed the findings and said the ruling would “change the landscape of professional football”.

FIFA said: “FIFA is satisfied that the legality of key principles of the transfer system have been reconfirmed in today’s ruling.

“The ruling only puts in question two paragraphs of two articles of the FIFA Regulations on the Status and Transfer of Players, which the national court is now invited to consider.

“FIFA will analyse the decision in co-ordination with other stakeholders before commenting further.”