FIFA Transfer Laws Exist Contrary to EU Law
Football has evolved into a multi-billion-pound industry over the last few decades, attracting investment from some of the richest people in the world. The sport captivates millions worldwide as fans and followers become increasingly invested in their favourite teams. Spectators become engrossed in their most cherished player, choosing to base their entire footballing identity on them. However, this love can be easily stripped away by a transfer, a significant aspect of today's modern footballing industry.
Key FIFA rules currently govern the transfer system and have been deemed contrary to EU law, which may create detrimental consequences for the sport we know today. On October 4 2024, the Court of Justice of the European Union (CJEU) deemed that FIFA regulations governing the transfers of international footballers are subject to incompatibility with EU competition and freedom of movement laws. This decision was based upon the provisions of FIFA’s regulations on the status and transfer of players (RSTP).
The case arose after Lassana Diarra’s contract with Lokomotiv Moscow in 2014 was terminated. Diarra was contracted with the club until 2017, yet his contract was terminated three years early, as he cited unpaid wages. The former Chelsea footballer then asked FIFA whether he was now a free agent (a term given to a footballer without a current contract at a club). This was necessary for Diara to complete a transfer to another club in Belgium. However, in the time it took for the process to be completed, his prospective club pulled out of the deal. Under FIFA regulations, any new club which chose to sign with Diarra would risked paying compensation to Lokomotiv Moscow. As a result, this inhibited Diarra from finding a new club to play for. Diarra eventually issued a complaint to the European Commission, stating that the current FIFA regulations exist contrary to EU competition law and the freedom of workers. His complaint was unsuccessful, which led him to appeal to the CJEU. Diarra sought six million euros in compensation, which FIFA and the Belgian FA eventually paid him.
The CJEU ruling challenges the longstanding transfer system that has been governed by the football association for a long time. The ruling of the case has broad implications for numerous sports which contain international transfer systems, setting a precedent for sports regulations through the prism of EU law. Furthermore, the decision of this case enhances the rights of professional footballs across Europe, as it challenges FIFA transfer rules, preventing players from moving between clubs without any repercussions when their contracts have been terminated.
Through the result of the case, the court has clarified that even in the global phenomenon of football, rules must align with European laws on fair competition and workers’ rights. This means large governing bodies, such as FIFA, cannot establish rules and regulations that unfairly restrict players or go against EU principles.
The landmark ruling in the Diarra case fundamentally asks questions of FIFA. The judgement may mark a significant shift in the transfer regulations of football and other sports worldwide, potentially altering the current legal landscape of sports law. FIFA must align their regulations with current European Law, ensuring a sense of stability and certainty for professional footballers around the world.
By Sammy Patten
