Category: Football, Sports

Fifa Transfer Rules Overturned: Powerful EU Court Ruling Changes Football Transfers

The European Union’s highest court has found that certain Fifa rules governing football transfers violate EU law. This significant ruling came after a long-standing legal dispute between former footballer Lassana Diarra and Fifa. The case, which challenged aspects of the football transfer system, could lead to significant changes in the global football market.

Diarra, who previously played for top clubs like Chelsea and Arsenal, took legal action against Fifa after his contract with Russian club Lokomotiv Moscow was terminated in 2014. He argued that some Fifa transfer rules restricted his freedom of movement and breached EU competition laws, ultimately suing Fifa for damages.

The European Court of Justice ruled in favor of Diarra, stating that Fifa’s refusal to issue an international transfer certificate (ITC) for Diarra’s proposed move to Belgian club Charleroi in 2015 restricted the free movement of professional footballers. According to the ruling, Fifa’s rules “impede the free movement of professional footballers wishing to develop their activity by going to work for a new club.”

Fifa's Response to the EU Court Ruling

Following the ruling, a Fifa spokesperson stated that while they are satisfied the legality of core principles of the transfer system has been upheld, two paragraphs from two specific articles of the Fifa regulations must now be reconsidered by a national court.

Why Did Diarra Bring the Case Against Fifa?

The legal battles involving Lassana Diarra began after his contract with Lokomotiv Moscow was terminated in 2014. Following a dispute with manager Leonid Kuchuk, the club alleged that Diarra refused to train and rejected a pay cut. As a result, the club dismissed him three years before his contract was due to end.

In 2016, Fifa ruled against Diarra, ordering him to pay €10 million to Lokomotiv Moscow for breach of contract and suspending him from professional football for 15 months. When Diarra attempted to sign with Belgian club Charleroi, the club sought assurances they wouldn’t be liable for compensation to Lokomotiv, which led to Fifa withholding the ITC needed for the transfer to proceed.

Diarra’s legal team contested this rule, arguing that requiring a club signing a player to be jointly liable for compensation to the player’s previous club restricted the player’s freedom. They also challenged the rule that allowed the national association of the former club to withhold the ITC in the event of a dispute, which they claimed hindered player movement.

Court Ruling Calls for Revision of Fifa Transfer Regulations

The European Court of Justice determined that Fifa should not be able to use the ITC system to prevent players from moving and working freely. Parts of Fifa’s transfer rules will now need to be revised to remain compliant with EU law.

The ruling ensures that players like Diarra, who have had their contracts terminated, should be able to continue their careers elsewhere without facing undue obstacles, such as hefty compensation claims from their previous clubs. This gives greater power to players and their agents in the transfer market and ensures that players are treated more like workers in other industries, who have the freedom to move to a new employer without excessive restrictions.

Implications of the Ruling on Fifa and Football Transfers

Global players’ union Fifpro called the judgement “a major ruling” that will “change the landscape of football.” Diarra’s legal team described the outcome as a “total victory,” adding that the ruling would accelerate the modernization of governance at Fifa and allow other players in similar situations to claim compensation.

Fifa has said it will analyze the court’s decision alongside other stakeholders before commenting further. The ruling emphasizes that Fifa’s regulations must be less restrictive to provide players with more freedom to move and work in their chosen field.

This landmark decision reaffirms the right of football players to have freedom of movement similar to other European workers, and Fifa must revise its transfer rules accordingly to comply with EU regulations. While the full ramifications will become clear as Fifa updates its rules, this ruling undoubtedly shifts power toward the players, giving them more control over their career choices.