The European Court of Justice overturned FIFA’s restrictions on buyout costs for players who prematurely terminate their contracts with a club. FIFA may now have to change its rules regarding professional footballer contracts in Europe. Professor Stefaan Van den Bogaert, who teaches European Law at Leiden University, stated that the verdict will have “major consequences for many football clubs.”
A representative for the European Court of Justice said that the decision on the football federation’s transfer rules is final and that no appeals are permitted.
This issue was brought before the EU court when a Belgian court enquired about the damage compensation that Belgian football club Charleroi was had to pay Russian club Lokomotiv in order to sign French football player Lassana Diarra.
“The rules are such that they hinder the free movement of professional footballers who want to develop their careers at a new club,” one of the judges stated while reading the ruling. According to FIFA rules, if a player’s contract is terminated without reasonable cause, he and his new club are jointly and severally accountable for paying the club compensation.
In a preliminary judgement issued at the end of April, an Advocate General of the European Court stated that the transfer regulations may contradict with European legislation governing the free movement of workers and free competition between commercial businesses. In other terms, a footballer is an employee who has the right to negotiate his own contract.
The implications for the football world are considerable, as the transfer market allows some clubs to make money. These clubs sign a player for a modest fee and then sell him years later for a large profit. The EU court said nothing about what FIFA should do with its rules, simply that they violate EU accords.
Van den Bogaert stated that the European Court of Justice’s decision on FIFA’s transfer restrictions demonstrates that players have certain rights and can effectively enforce them. He stated that it is now critical for all parties involved—players, clubs, and the federation—to work together to develop a system “that is good for everyone.”
According to the professor, FIFA overcomplicates player transfers to other clubs. According to Van den Bogaert, this will certainly bring a stop to the exorbitant fees paid when a player quits his contract prematurely.
“If this is the true, it will have serious implications for numerous football clubs. Smaller nations, such as the Netherlands and Belgium, rely heavily on the transfer market for finance.” Football clubs will be able to sign players more easily from other clubs, but they will also be able to lose players faster. “This can lead to a downward spiral in transfer fees.”
The ruling ensures that professional footballers will be regarded more like “regular employees,” according to the professor. “In the past, it was rare for a footballer to breach a contract. That will now be easier, which is beneficial to the players.”
The Dutch Football Association (KNVB) has stated that it will properly investigate the ruling and consult with those directly concerned. “At this time, we cannot say anything about the consequences of this ruling for football in general and Dutch football in particular,” a representative told ESPN.
The Dutch Association of Contract Players (VVCS) chairman, Evgeniy Levchenko, described the ruling as a game changer. “There was no doubt that the current transfer system was completely incompatible with European law.” I am delighted that this decision benefits the players.”
Levchenko now wants players, clubs, and FIFA to explore new rules. “So that footballers, like any other employees, have a free choice if they want to change employer.”
According to the president of the players’ union, the present system’s “draconian restrictions” keep players too closely attached to their clubs. Although the new rules have yet to be decided as a result of the verdict, he is optimistic that there will be “many more” options for players to move to another football club once their contracts expire. “This is going to change the lives of players internationally.”