EU Judicial Body Declares: Football Shakes: Transfer Regulations Violate EU Legislation
A setback for FIFA in international soccer: The European Court of Justice (ECJ) in Luxembourg has determined that certain transfer regulations of FIFA infringe upon "Union law". This decision could potentially have significant consequences for the transfer market. An ex-professional athlete initiated the legal action.
In a disagreement regarding FIFA's transfer regulations for soccer players, FIFA encountered a loss before the highest European court. The ECJ found that some regulations contradict EU law, as stated in their ruling. The free movement of players ensured by EU law and the competition among clubs are allegedly being limited by the rules under examination, according to the sentence. FIFA was requested for comment.
The origins stem from a lawsuit filed by former French football professional Lassane Diarra. In 2013, he was acquired by Russian club Lokomotive Moscow. However, the partnership turned sour after only a year, prompting Diarra to request compensation. Diarra argued that due to FIFA regulations, finding another club was challenging, making it necessary for any new club to pay compensation to Lokomotive Moscow if a contract was terminated without cause.
ECJ: Regulations infringe Union law
Subsequently, a deal with Belgian club Sporting du Pays de Charleroi did not materialize. Diarra then initiated a lawsuit against FIFA and the Belgian football association, claiming damages and losses amounting to six million euros. He asserted that FIFA's transfer regulations violate EU regulations on freedom of movement and competition. The Belgian court subsequently referred the case to the ECJ.
In their judgment, the judges deemed that FIFA's regulations exceeded the limit. They impose "substantial legal, uncertain, and potentially significant financial, as well as notable sports-related risks" on players and clubs, according to a court press release. While some rules may be warranted to ensure a certain level of team stability, in this case, it appears they surpass that boundary, the judges concluded.
The Belgian court is now responsible for resolving the specific case and applying the ECJ's guidelines. The outcome hinges on how the associations incorporate the ruling.
Following the ECJ's ruling, soccer clubs may need to reevaluate their transfer strategies due to the potential impact on player mobility. FIFA's regulations, which were deemed to infringe on EU law, could limit the free movement of soccer players and competition among clubs.
The controversy surrounding Lassane Diarra's transfer from Lokomotive Moscow to Sporting du Pays de Charleroi led to this legal battle against FIFA. Diarra alleged that FIFA's transfer regulations violated EU regulations on freedom of movement and competition, resulting in significant financial and sports-related consequences for him.
