FIFA rules governing player transfers deemed “contrary to European Union law”

FIFA rules governing player transfers deemed “contrary to European Union law”
FIFA rules governing player transfers deemed “contrary to European Union law”

This decision could cause a small revolution in the world of football. Certain FIFA rules governing transfers between clubs are “contrary” to European Union law and “likely to hinder the free movement” of professional footballers, the Court of Justice of the European Union ruled on Friday. At the request of Belgian justice, the high court established in Luxembourg examined the case of former French international Lassana Diarra who had contested, ten years ago, the conditions of his departure from Lokomotiv Moscow.

Due to a drastic reduction in his salary, Lassana Diarra had wanted to terminate his contract with the Moscow club, but the latter had deemed the termination unfair and had demanded 20 million euros from him – later reduced to 10.5 million – for the damage suffered. Consequence: the Belgian club Charleroi, once interested, finally gave up recruiting the Frenchman for fear of having to assume part of these penalties, in accordance with what FIFA required.

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Restriction of cross-border competition

These rules, the CJEU ruled on Friday, “are likely to hinder the freedom of movement of professional footballers who would like to develop their activity by going to work for a new club, established on the territory of another Member State of the Union “. The court considers in fact that they “place on these players and on the clubs wishing to engage them significant legal risks, unpredictable and potentially very high financial risks as well as major sporting risks, which, taken together, are likely to hinder the international transfer of players.

Furthermore, these same disputed rules “are intended to restrict, or even prevent, cross-border competition in which all professional football clubs established in the Union could engage”. “The possibility of competing by recruiting already trained players plays an essential role in this sector,” adds the Court of Luxembourg in its judgment.

“Major decision for the regulation of the labor market in football”

Seized by the Mons Court of Appeal of a preliminary question (Lassana Diarra had first brought the case before the Belgian courts), the Court of Justice of the European Union returned the buck. She considers that “subject to verification” by this Belgian court of appeal, these FIFA rules restricting competition “do not seem essential or necessary”. Belgian lawyer Jean-Louis Dupont, who defends the 39-year-old French player, now retired, welcomed this “major decision for the regulation of the labor market in football (and more generally in sport) “.

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