EU vs FIFA: EU ruling could open Pandora's Box on transfers

Europe’s top court has ruled that certain FIFA transfer rules break current laws in place within the EU. The legal case against soccer’s governing body was brought forth by former Chelsea and Real Madrid midfielder Lassana Diarra. The issue between Diarra and FIFA has been ongoing for some time.

Diarra and his lawyers claimed that select transfer rules restricted his freedom and breached competition laws. As a result, the now-retired former player sued FIFA. The issue stems from Diarra’s time with Lokomotiv Moscow. The midfielder previously joined the Russian side in 2013.

Nevertheless, the relationship between the player and the team quickly soured. Lokomotiv officials asked Diarra to lower his salary in the summer of 2014, but the midfielder denied the request. The Russian club then cut Diarra loose after the player failed to report to training. His contract was supposed to be in place until 2017.

Along with severing ties with Diarra, Lokomotiv also sought financial restitution from the player and asked FIFA to ban him from joining another team. The governing body sided with the Russian club. Two years after the fiasco, Diarra had to pay Lokomotiv an $11 million fine for breaching his contract. He also picked up a ban, but he had already spent the entire 2014/15 season on the sidelines.

EU court claims that FIFA broke European laws by blocking transfer

After leaving Lokomotiv, the former midfielder was going to join Belgian side Charleroi on a free transfer. FIFA, however, blocked the move. The governing body’s rule in question pertains to the Regulations on the Status and Transfer of Players (RSTP). The law states that players who terminate their contracts “without just cause” are liable to pay compensation to their club.

Despite these previous issues, the European court ruled in favor of Diarra on Friday. The ruling stated that by denying transfers such as Diarra’s proposed move to Charleroi, FIFA’s rules “impede the free movement of professional footballers wishing to develop their activity by going to work for a new club.”

Following the decision, a FIFA spokesman claimed that the court’s ruling only affects a small portion of the law. “FIFA is satisfied that the legality of key principles of the transfer system has been reconfirmed in today’s ruling,” said the spokesman.

“The ruling only puts in question two paragraphs of two articles of the FIFA regulations on the status and transfer of players, which the national court is now invited to consider.”

Ruling will likely bring biggest transfer changes since 1995

The outcome of the case will bring some significant changes to player transfers. Ultimately, the court ruled that players should essentially have more power to play where they want to play. In turn, FIFA’s rules should be less restrictive against players’ wishes.

There are worries that the decision will cause agents and players to exploit the ruling moving forward. British sports lawyer Tasin Patel has claimed that some players will soon break free of their contracts at certain clubs. “The result could mean far-reaching consequences for the transfer system, similar to how the Bosman Ruling affected transfers in 1995,” Patel told BBC Sport.

The Bosman Ruling allowed soccer players in the European Union to become free agents at the end of their previous contracts. These free agents could then sign with any other club of their choosing.

“Players may now be able to move more freely to other clubs by breaking with a contract as opposed to being tied to the club and contract,” continued Patel. “In addition, buying clubs may not have to pay compensation or claims.”

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