Ruling after dispute

FIFA transfer rules violate EU law

FIFA must change its transfer rules.(Bild: APA/AFP/OZAN KOSE)

A bitter defeat for FIFA: certain transfer rules violate EU law, as the European Court of Justice (ECJ) in Luxembourg has ruled. According to the ruling, the free movement of players granted by EU law and competition between clubs are restricted by the rules dealt with by the ECJ. 

The background to this is a complaint by former French professional Lassane Diarra. He was signed by Russian club Lokomotiv Moscow in 2013. After just one year, the contract was terminated and Diarra demanded compensation. The former international sued the club for outstanding wages. He claimed that the search for a new club was proving difficult. According to FIFA rules, any new club would be liable for paying compensation to Lokomotiv Moscow if a contract with him was terminated without cause.

Transfer to Belgium canceled
For this reason, a contract with the Belgian club Sporting du Pays de Charleroi did not materialize. Diarra then sued FIFA and the Belgian association for damages and loss of earnings of six million euros. He complained that FIFA's transfer rules violated EU regulations on freedom of movement and competition. The Belgian court then referred the case to the ECJ.

How the ECJ justified the ruling
The judges have now ruled that FIFA's rules overstep the mark. They burdened athletes and clubs "with considerable legal, unforeseeable and potentially very high financial and sporting risks", according to a press release from the court. Some rules could be justified by the fact that they ensure a certain degree of consistency in the teams. In this case, however, the rules appear to go beyond this, according to the judges.

The Belgian court must now decide on the specific case and implement the ECJ's guidelines. What happens next will depend on how the associations implement the ruling.