Global football is facing an impending transfer alarm today.
Is FIFA's transfer rule violation a concern? European Court to dictate today. The consequences could be extensive in global football.
What's the issue at hand? Ex-French footballer Lassane Diarra is taking FIFA to task over certain transfer regulations. Back in 2013, Diarra joined Russian side Lokomotive Moscow, but the partnership didn't last long and the club ended the agreement, seeking compensation. Diarra countered by suing for unpaid wages, asserting that finding a new club was challenging due to FIFA's transfer rules.
Under FIFA regulations, any club acquiring Diarra would be obligated to compensate Lokomotive Moscow should the contract end prematurely without cause. This circumstance prevented a transfer to Belgian club Sporting du Pays de Charleroi from materializing. Diarra subsequently sued FIFA and the Belgian football association for damages and lost earnings totaling six million euros. The Belgian court subsequently referred the case to the ECJ.
Possible outcome of the verdict? Insights into the potential decision were provided by the Advocate General Maciej Szpunar's findings. He sided with Diarra, arguing that the transfer system could be unlawful. He contended that FIFA rules discourage clubs from signing players due to financial risks. The prospect of penalties against clubs could potentially prevent players from working in another EU country, thereby limiting the EU's freedom of movement.
Additionally, FIFA rules hamper competition among clubs by restricting player signing opportunities. However, these infringements of EU rules on freedom of movement and competition could be justified if they serve a legitimate purpose. Judges often, but not always, adhere to the Advocate General's opinion. For instance, last year, they disregarded his stance entirely in the Super League case.
What could be the ramifications of the judgment? The ECJ only addresses the questions it's presented with. The national court (in this case, the Belgian one) then decides the specific case, considering the ECJ's legal assessment. If the judges concur with the Advocate General's conclusion and establish a breach of EU law by FIFA, this could transform the football transfer system profoundly. FIFA may then be compelled to amend its regulations.
Historically, an ECJ ruling has had significant consequences for global football: the aforementioned Bosman ruling allowed players to transfer between clubs without incurring transfer fees. However, the ECJ could also opt to leave the transfer system relatively untouched, merely requiring FIFA to implement minor changes—perhaps ensuring that the new club isn't jointly liable with the player if the club was not involved in the contract termination.
The ruling from the European Court could potentially resolve Diarra's dispute with FIFA and Lokomotive Moscow, as he argues that FIFA's transfer rules hindered his ability to find a new club. The verdict could also have wider implications, potentially forcing FIFA to revise its transfer regulations if the ECJ finds them to be in violation of EU law.
