In a landmark decision that could shake up the global football landscape, the European Union’s top court has ruled that FIFA’s transfer rules are illegal, effectively striking a blow against the governing body’s long-standing authority over player movement, Bloomberg reports.
The ruling stems from a case brought by former French international Lassana Diarra, who argued that FIFA regulations prevented him from signing with Belgian club Sporting du Pays de Charleroi after his contract was terminated by Russian club Lokomotiv Moscow. Diarra claimed he suffered €6 million ($6.6 million) in lost earnings due to the stalled transfer.
Diarra’s legal battle centered on FIFA’s requirement that a new club be held jointly liable with a player for any compensation owed to the player’s previous club. The EU court in Luxembourg deemed this rule a violation of the principle of free movement of workers, saying that it hindered both player movement and competition between clubs.
This judgment echoes the landmark Bosman ruling of 1995, which similarly challenged FIFA’s control over player transfers. The Bosman case, originating in Belgium, led to the liberalization of the European football transfer market, granting players the right to move freely to another club at the end of their contract.
In Diarra’s case, the FIFA regulations effectively blocked his transfer to Charleroi, as the Belgian club was unwilling to take on the financial burden of potential compensation to Lokomotiv Moscow. FIFA subsequently ordered Diarra to pay €10 million for breaching his contract with the Russian club, a decision later upheld by the Court of Arbitration for Sport.
Diarra, a former midfielder for clubs such as Real Madrid and Chelsea, ended his career in 2019 with Paris Saint-Germain.
The EU court’s decision marks a significant victory for players’ rights and potentially represents a shift in power dynamics within the football world. FIFA’s transfer system has long been a source of controversy, with critics arguing that it stifles player mobility and creates an imbalance of power between clubs and players.