Some Of FIFA's Transfer Rules Found Contrary To EU Law
Some of FIFA’s rules governing the transfer system have been ruled “contrary to EU law” by the court of justice of the European Union (CJEU).
In the resolution of FIFA v the player “BZ” – the former midfielder Lassana Diarra – it found that rules relating to the authorisation of transfers for players restrict freedom of movement and that current rules requiring buying clubs to cover the cost of compensation for a player who breaks a contract “without just cause” are anti-competitive.
“Some FIFA rules on international transfers of professional footballers are contrary to EU law”, read the statement.
“First, 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, established in the territory of another Member State of the European Union,” it continued.
“Those rules impose considerable legal risks, unforeseeable and potentially very high financial risks as well as major sporting risks on those players and clubs wishing to employ them which, taken together, are such as to impede international transfers of those players.”
Reacting to the news, PFA CEO, Maheta Molango, said: “This is an important ruling which could have potentially far-reaching ramifications for the rights of players within the current transfer system.
“More widely, it demonstrates again that football cannot behave like it does not have to work within the same employment laws that apply to any other industry.
“Legal action is nearly always the consequence of a failure to address issues constructively and collaboratively, but rulings such as this show that is ultimately remains an effective way to defend the rights of players as employees
“It demonstrates why the PFA, and other player unions are also pursuing legal action in relation to the fixture calendar and player workload.
“As they consider the impact of this ruling, the football authorities need to be making an honest and open assessment of the suitability of their rules and how they sit alongside employment laws.
“They then need to start making genuine and proactive efforts to work with players and their unions.”
Also responding to the judgement, European Leagues released a statement which read:
“The European Leagues take note of today’s ruling by the Court of Justice of the EU on the so-called Diarra case (C-650/22 | FIFA).
“Today’s decision confirms that FIFA must comply with national laws, European Union laws or national collective bargaining.
“The leagues stand for contractual stability in line with EU laws which is safeguarded by national laws and collective bargaining agreements negotiated and agreed by professional leagues and players’ unions at domestic level.
“In this context, considering this ruling will have a major impact on the future of the football labour market, the inclusion of leagues and players’ unions representatives in the international governance of football is now becoming legally essential considering the collective role they play in the social dialogue at national level.”
The case was brought to the CJEU by former Arsenal, Chelsea and Portsmouth player Lassana Diarra after he was denied an international transfer certificate (ITC) in 2014 following a salary dispute with his former club Lokomotiv Moscow who terminated his contract for ‘Breach of Contract’.
The club took Diarra to FIFA’s dispute and resolution chamber (DRC), and despite his counterclaim, the DRC found in Lokomotiv’s favour and fined him €10.5m. He was then subsequently denied an ITC after being offered a new contract at Belgian club Charleroi who wanted guarantees from FIFA that they would not be liable for any of the costs owed to Lokomotiv.