Transfer fees could be SCRAPPED in biggest change to football in 30 years after landmark court case brought against Fifa
FIFA’s transfer rules have been declared ILLEGAL by Europe’s highest court.
In a landmark ruling that could see the entire transfer system ripped up, the European Court of Justice backed former Chelsea, Arsenal and Portsmouth midfielder Lassana Diarra in his case against Fifa.
Diarra, 39, sued the world body after it upheld a £16m fine imposed on him by former club Lokomotiv Moscow in 2014 after he was sacked for allegedly boycotting training over a pay dispute.
The case went all the way to the Luxembourg-based ECJ, Europe’s highest court.
Diarra’s lawyer, Jean Louis Dupont – the man responsible for the “Bosman” ruling in the 1990s that transformed the face of European football – argued that Fifa had broken European labour laws by refusing to issue the International Transfer Certificate which would have allowed him to join another club and exercise his rights as a professional.
And in an eagerly-awaited ruling the ECJ has now declared the current regulations are in breach of EU Law on the free movement of people.
The Court ruled: “The rules in question are such as to impede the free movement of professional footballers wishing to develop their activity by going to work for a new club.
“Those rules impose considerable legal risks, unforeseeable and potentially very high financial risks as well as major sporting risks on those players and clubs wishing to employ them which, taken together, are such as to impede international transfers of those players.”
Potential ramifications could be huge depending on the full judgement, which will be published later today.
If the Court has made a strong ruling, it could effectively declare the entire current system is in breach of EU Law.
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Inside Lassana Diarra’s legal case with Fifa
Lassana Diarra’s case with Fifa dates back to 2014 when he was playing for Lokomotiv Moscow.
The former Chelsea and Real Madrid midfielder was in a dispute with Lokomotiv over wages – with the Russian side ultimately terminating his contract.
The case was referred to Fifa’s Dispute and Resolution Chamber (DRC) which ruled against Diarra, fining him £16MILLION.
During this time, Diarra received a new contract offer from Belgian side Charleroi.
But Charleroi wanted clarification from Fifa that they would not be liable to pay any of the money owed to Lokomotiv.
Fifa could not make that guarantee and the move never happened.
As a result, Diarra brought new legal action against Fifa and the Belgian league claiming a loss of earnings.
That started the long process that has led to this week’s groundbreaking judgment.
That would see Fifa losing its current authority over the transfer system and allow players the right to break their contracts and change clubs with impunity.
In turn, that would end the current “trickle down” system where many smaller clubs are reliant on transfer income.
How football changed after Bosman ruling
THE Bosman Ruling transformed football transfers in 1995.
Before the Bosman Ruling, clubs could demand a transfer fee for a player even after their contract had expired.
But Belgian footballer Jean-Marc Bosman went to the European Court of Justice and the judge ruled in his favour.
And that meant that when a player’s contract expired, they could move freely to another club within the EU without a transfer fee.
The landmark court case gave players far more power in the final year of their deals – with clubs either needing to extend them or lose them for nothing at the end of the season.
Footballers can now also sign pre-contract agreements with new clubs from January when their deals run out to move on a free transfer.
The Bosman Ruling essentially removed the restrictions on EU football players with expired contracts, giving them the same rights as free agents and increasing the freedom of movement.
And even with the UK leaving the EU, the Bosman Ruling still applies for Premier League clubs.
Such an outcome would lead to big stars being able to hawk their services for free but for huge wages, allowing the wealthiest clubs – including the bulk of the Premier League – the opportunity to hoover up the best talent.
In its summary of the ruling, the Court added: “Restrictions on the free movement of professional players may be justified by overriding reasons in the public interest consisting in ensuring the regularity of interclub football competitions, by maintaining a certain degree of stability in the player rosters of professional football clubs.
“But these rules have as their object the restriction, and even prevention, of cross-border competition by unilaterally recruiting players under contract with another club or players about whom it is alleged that the employment contract was terminated without just cause.
“The possibility of competing by recruiting trained players plays an essential role in the professional football sector.
“Rules which place a general restriction on that form of competition, by immutably fixing the distribution of workers between the employers and in cloistering the markets, are similar to a no-poach agreement.
“Those rules do not appear to be indispensable or necessary.”
Dupont declared the ruling a “total victory”, adding that the Court had “severely censured the structurally illegal actions of the current regulations”.
He said: “This paves the way for a modernisation of governance, in particular through the use of collective bargaining between employees and employers.
“All professional players who have been affected by these illegal rules can therefore now seek compensation for their losses.
“We are convinced that this will force Fifa to submit to the EU rule of law and speed up the modernisation of governance.”
Diarra’s dispute originated in 2014 when he left Lokomotiv Moscow following a disagreement over his salary.
The midfielder’s contract was terminated and he was subsequently fined £16million by Fifa after the Russia club took the case to the Fifa resolution chamber seeking damages.
Diarra almost signed for Belgian side Charleroi at the same time and they wanted assurances from Fifa that they would not be liable for those damages if he joined, but those guarantees were not forthcoming.
Fifa rules stipulate an international transfer certificate must be granted by the league a player is leaving – but the Russia league did not grant it.
As a result, Diarra began legal action against Fifa and the Belgian football league, claiming a loss of earnings, and was initially unsuccessful before the latest ruling.
Lassana Diarra's career stats
Lassana Diarra played for some of the top clubs in Europe as an all-action defensive midfielder.
He started at Le Havre before earning his big break with a £4million move to Jose Mourinho’s Chelsea in 2005.
Diarra was largely a rotation option but won an FA Cup and League Cup double with the Blues before a brief move across London to join Arsenal.
But it was at Portsmouth where Diarra really made his name, winning a historic FA Cup and earning a massive £19m move to Spanish giants Real Madrid.
Diarra played 117 times in five seasons for Los Blancos, winning one LaLiga title, again under Mourinho, and the Copa Del Rey.
Then came Diarra’s fateful move to Russia, first Anzhi Makhachkala and then Lokomotiv Moscow, before he saw out his playing career in his native France with Marseille and then PSG, where he won one Liga 1 crown.
Le Havre (2003–2005)
Chelsea (2005–2007)
Portsmouth (2008–2009)
Real Madrid (2009–2012)
Anzhi Makhachkala (2012–2013)
Lokomotiv Moscow (2013–2015)
Marseille (2015–2017)
Al Jazira (2017–2018)
Paris Saint-Germain (2018–2019)