the Court of Justice of the EU imposes a shake-up of the transfer window

It was an outcome that had been awaited for a very long time and which could have a huge impact on the future of the transfer markets. For several months now, Lassana Diarra has been waiting for the decision of the Court of Justice of the European Union after a very long legal battle. It all started in 2014, when the former French international played for Lokomotiv Moscow, in Russia. After disagreements with his club (in particular over a possible salary cut), Lassana Diarra wishes to leave the club. Problem, Lokomotiv does not want to let him leave but ultimately decides to terminate his contract. So far, nothing unusual. But the Russian club justifies its termination of the contract by explaining that Diarra stopped executing his contract without “just cause” and is demanding 20 million euros (the amount of his last 3 years of contract) from him before the resolution chamber. FIFA disputes.

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Worse still, in this type of case, the player’s future club is responsible for this sum and should therefore have paid the 20 million euros according to the regulations on the status and transfer of players (RSTJ). Obviously, for the Lassana Diarra case, no club wanted to recover him, thus fearing financial or even sporting sanctions (recruitment ban). The Belgian club Charleroi, interested, ended up giving up, not wanting to be responsible for these 20 million euros to pay. A year later, in May 2015, the dispute resolution chamber ended up ordering Lassana Diarra to pay 10.5 million euros to Lokomotiv but ultimately allowed him to look for a new club (he had signed with OM immediately). This case had relaunched the debate on the rights of football players since a player cannot leave without obtaining the approval of his club and this creates abuses (lofts, juicy transfer market with overpowering clubs).

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The CJEU rules in favor of Lassana Diarra

Since this affair, Lassana Diarra had decided to wage a legal battle against FIFA and take the matter to the commercial court of Hainaut, in Belgium. And this debate ended up reaching the Court of Justice of the European Union with the following question: is the RSTJ compatible with European Union law? A first hearing took place in January before the CJEU. FIFA had thus explained that its regulations were essential to ensure “contractual stability as well as respect for the obligations contracted by both players and clubs. The RSTJ allows the maintenance of a balance between the clubs, preserving a certain equality of opportunities and the uncertainty of results”. FIFA also added that with a completely liberalized market, the richest clubs would always buy players from competing clubs, with their agreement or not. But this was not convincing since the magistrate had considered that the rules of FIFA “infringed European rules on competition and free movement of people”.

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This Friday, the CJEU finally delivered its verdict in the Lassana Diarra case. She confirmed that FIFA rules on transfers did infringe European Union law. “The rules in question are likely to hinder the free movement of professional footballers wishing to develop their activity by going to work in a new club”. A decision which therefore vindicates Lassana Diarra, supported by FIFPro and the UNFP, after more than 10 years of legal battle. “A total victory” for Lassana Diarra “who dared to defy the all-powerful FIFA” explained the player’s lawyer after the decision. It now remains to be seen the concrete consequences of this decision while the lawyers of the former Parisian evoked a model similar to that of basketball or rugby without any transfer. For their part, the players’ unions campaigned for the creation of a collective agreement on a European scale. Response in the next few hours. But one thing is certain, this decision by the CJEU will revolutionize the club transfer window.