The transfer market in football is facing "disorder" or "chaos".
Will the football transfer market undergo a major transformation shortly? Longtime advocate Lassana Diarra has been making his case at the European Court of Justice for quite some time, and a ruling is about to be announced. Predicting the impact on football is proving to be challenging.
Could we witness "chaos" shaping up in the transfer market? A modern spin on the Bosman case? The international football industry is eagerly keeping tabs on the European Court of Justice's decision this week. Experts suggest that the Diarra verdict, due soon, could potentially revolutionize the football industry.
Belgian sports law experts, Robby Houben, Oliver Budzinski, and Melchior Wathelet, penned an opinion piece, stating that Diarra's likely "outcome could potentially bring about the downfall of the transfer system in football as we know it."
If Diarra succeeds, the fallout might swiftly occur. Competition law expert, Mark E. Orth, speculates that with the ECJ decision on Diarra, the competition among clubs for top talent will heat up even more. Premier players may become pricier, he suggested to "Kicker." Contractual agreements might end up holding less power: "In the future, a player could readily join a new club even if they still hold an existing contract."
Diarra's missed opportunity to join a new club
The turmoil that has questioned the international transfer system began in 2014. Following his departure from Lokomotiv Moscow due to wage reductions, just a year into his four-year contract, Diarra, who also played for Real Madrid, Arsenal FC, and Chelsea FC, found himself being sued for breach of contract by his former club.
FIFA slapped a fine of over ten million euros on Diarra, a penalty later upheld by the Court of Arbitration for Sport (CAS). Any club vying to sign Diarra was required to contribute to this hefty fine. Belgian first division club Royal Charleroi ultimately declined to sign Diarra, as did other clubs. Diarra and his legal team, who had previously defended Bosman, chose to take legal action against FIFA.
They contend that the current system infringes upon workers' right to freedom of movement and anti-trust rules. In April, Maciej Szpunar, Advocate General of the European Court of Justice (ECJ), agreed in principle. "It is highly unlikely that the FIFA rules governing the transfer status of players are not restrictive in nature," he argued in his opinion: "The challenged provisions obviously rein in the opportunities players have to join different clubs."
Now, everyone waits with bated breath for the ruling of the ECJ judges, which could result in "chaos," according to the British "Guardian." In the past, the ECJ has significantly altered the football market by implementing the so-called Bosman ruling, which marked the end of the tradition of demanding transfer fees even after a player's contract had expired. Bosman celebrates his 60th birthday on Thursday and will undoubtedly watch to see if the multi-billion-dollar business will change yet again, 29 years later.
If the ECJ rules in favor of Diarra, this could lead to a significant shift in soccer transfer negotiations. With contractual agreements holding less power, top soccer players might become even more sought after by various clubs.
The upcoming ECJ ruling on Diarra's case has the potential to cause significant disruption in the soccer transfer market, particularly if it results in reduced power for contractual agreements.
