FIFA transfer rules in conflict with EU law

The powerful International Football Federation also has opponents who create problems for it. FIFA's rules on the transfer of professional players contravene the principles of free movement established by European Union (EU) law, the Court of Justice of the European Union (CJEU) has ruled. The ruling comes in a key case involving former France international Lassana Diarra, who challenged FIFA regulations after a dispute with Russian club Lokomotiv Moscow, reports Reuters. The CJEU stated that "the rules in question are likely to impede the free movement of professional footballers who wish to develop their careers by working for a new club". The decision comes as Diarra challenged a number of FIFA regulations requiring players to pay compensation to the club if they terminate their contract early "without good reason". Also, any new club that would register the player is jointly and severally liable for the payment of these compensations.

• The Diarra case

Former Real Madrid player Lassana Diarra was embroiled in a dispute with Lokomotiv Moscow, the club he had signed a four-year contract with in 2013. After a year, the contract was terminated amid pay disputes, with Diarra accusing unjustified salary reductions. Following this termination, the Russian club appealed to FIFA to seek damages, while the player sought compensation for unpaid wages. The Court of Arbitration for Sport later ruled that Lokomotiv Moscow had a "good reason" for terminating the contract, forcing Diarra to pay the club euro10.5 million. Diarra, however, argued that FIFA rules on joint and several liability of the new club prevented him from continuing his career, as teams interested in the transfer were deterred by the prospect of paying compensation to Lokomotiv. A potential deal with Belgian club Charleroi fell through as a result, prompting Diarra to sue FIFA and the Belgian Football Association for financial loss and damages worth six million euros.

• The CJEU decision and the implications for the transfer market

The CJEU ruling comes in the context of a broad debate on the balance between sports regulations and fundamental principles of the EU, such as the free movement of workers. The current FIFA Rules on the Status and Transfer of Players (RSTP) are seen as a barrier to the free movement of professional footballers. Lassana Diarra's case was supported by the world players' union, FIFPro, and raised questions about the fairness of these regulations. While the Court's ruling does not immediately overturn FIFA's rules, it puts pressure on the world forum to revise its regulations to comply with EU law. Gianni Infantino, the current FIFA president, elected in 2016, has taken it upon himself to reform the transfer market and modernize FIFA's rules. This ruling by the CJEU will highlight the need to review the transfer system to ensure greater fairness and compliance with European law, while protecting players' rights. The decision of the EU Court of Justice will undoubtedly have a major impact on the international player transfer market and could pave the way for fundamental changes in FIFA regulations, influencing future disputes between players and clubs.