FIFA’s transfer rules have been found to be in conflict with European Union laws, as the European Court of Justice in Luxembourg ruled today in the case of Lassana Diarra, opening a debate on whether clubs should be allowed to demand transfer fees when selling players.The final answer won’t come soon, especially because the ruling from the highest court in Europe still needs to be confirmed in the specific case by a court in Mons, Belgium. Diarra sued both FIFA and the Belgian Football Federation after they ordered him to pay €10.5 million due to a “unilateral” contract termination with Lokomotiv Moscow back in 2014.##EDITORS_CHOICE##However, it wasn’t entirely unilateral. After the first season of Diarra’s four-year contract, Lokomotiv demanded that he agree to a pay cut. He refused, and even stopped training, leading Lokomotiv to terminate his contract, effectively sidelining him for a year.During this time, Diarra was targeted by Belgian side Charleroi, but only on the condition that FIFA guaranteed they wouldn’t have to pay penalties to Lokomotiv later. FIFA didn’t give that guarantee, and as a result, other clubs—like Celtic, Inter, Newcastle, West Ham, and Queens Park Rangers—were hesitant to sign him, until Olympique Marseille picked him up a year later. In 2016, FIFA ordered Diarra to personally pay €10.5 million, plunging him into serious financial trouble.##NAJAVA_MECA_8388621##Nearly a decade later, the European Court of Justice ruled that FIFA’s regulations violate the EU’s rules on free movement. To simplify, if a baker, journalist, lawyer, or anyone else can quit their job and move to a higher-paying position, why can’t a footballer?Football fans know the answer: many clubs rely on transfer fees, and without them, they would face financial collapse. Would this also mean lower player wages? That’s a speculative theory, and at this point, no one can say for certain how football would look without transfers.Right now, people are concerned about the potential consequences, although it’s important to note that the Belgian court in Mons will decide the final outcome in Diarra’s case against FIFA and the Belgian FA. The Luxembourg court only gave recommendations, though they are binding.BREAKINGEurope’s highest court has ruled that some of FIFA transfer rules go against EU laws of freedom of movement.But how will this actually impact the transfer market?👇Lassana Diarra legally challenged FIFA rules following a dispute with Lokomotiv Moscow in 2013 over… pic.twitter.com/VbTawYUTo6— DW Sports (@dw_sports) October 4, 2024 “The disputed regulations hinder the free movement of professional footballers who seek to develop by moving to a new club,” the ruling states.FIFA’s rules are clear: if a player terminates a contract without justified reason, both the player and their potential new employer are obligated to compensate the former club, typically for the player’s salary up to the contract’s expiration.”These rules impose significant legal and highly unpredictable financial risks, as well as major sporting risks, both for the player and the club looking to sign them,” the ruling adds.The court acknowledges that FIFA’s rules were designed to ensure a certain level of stability in football team rosters but points out that in many respects, they go beyond what is necessary to achieve that goal. The system—in which a player can only move if two clubs agree—resembles situations where major employers agree not to poach each other’s workers, a practice that harms workers and is legally punishable in many countries, including within the European Union.#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
