Dutch professor: Football clubs face “major” issues after EU court rules against FIFA

The European Court of Justice has scrapped FIFA, the international football federation, rules on buyout fees for players who prematurely break their contracts with a club. FIFA may now have to adapt its rules for pro footballer's contracts in Europe. Professor Stefaan Van den Bogaert, who teaches European Law at Leiden University, said the ruling will have "major consequences for many football clubs."

A spokesperson for the European Court of Justice has confirmed that the verdict on the football federation's transfer rules is final and that no appeal is possible.

This case came to the EU court after a Belgian court asked questions about the damage compensation that Belgian football club Charleroi had to pay Russian club Lokomotiv to sign French footballer Lassana Diarra.

"The rules are such that they hinder the free movement of professional footballers who want to develop their career at a new club," said one of the judges when reading out the verdict. The FIFA rules stipulate that a player and his new club are jointly and severally liable for the payment of compensation to the club if the contract is terminated without just cause.

In a preliminary opinion, an Advocate General of the European Court had already said at the end of April that the transfer rules may conflict with European legislation on the free movement of workers and the rules on free competition between commercial companies. A footballer is, in other words, an employee who can negotiate his own contract.

The consequences for the footballing world are significant, as the transfer market is a way for some clubs to earn money. These clubs sign a player for a low fee and then sell that same player years later for a significant profit. The EU court did not say anything about what FIFA should do with its rules but only stated that they are against EU agreements.

Van den Bogaert said the European Court of Justice ruling on FIFA's transfer rules shows that players have certain rights and can effectively enforce them. He said it is now important for all parties involved—the players, clubs, and federation—to sit down together to come up with a system "that is good for everyone."

According to the professor, FIFA clearly complicates the transfers of players to other clubs too much. This will likely put an end to the very high fees charged when a player terminates his contract prematurely, said Van den Bogaert.

"If that is the case, then that will have significant consequences for many football clubs. Especially in smaller countries like the Netherlands and Belgium where the transfer market is an essential part of their financing." Although football clubs will be able to sign players more easily from other clubs, they will also be able to lose players more quickly. "This can lead to a downward spiral in transfer fees."

The verdict ensures that professional footballers will be treated more like "regular employees," the professor thinks. "In the past, it was rarely the case that a footballer would break a contract. That will now be easier, and that is better for the players."

The Dutch Football Association, the KNVB, has said that it will study the verdict thoroughly and discuss the matter with the people who are directly involved. "At this time, we cannot say anything about the consequences of this ruling for football in general and Dutch football in particular," said a spokesperson.

Evgeniy Levchenko, the Dutch Association of Contract Players (VVCS) chairman, called the verdict a game-changer. "It was beyond doubt that the current transfer system was completely at odds with European law. I am pleased that this ruling is in the players' interests."

Levchenko now wants the players, clubs, and FIFA to discuss new rules. "So that footballers, like any other employees, have a free choice if they want to change employer."

The players' union president said the current system's "draconian restrictions" left players too tied to their clubs. Although the new rules have yet to be determined following the ruling, he is confident that there will be "many more" opportunities for players to move to another football club after a contract break. "This is going to change the lives of players internationally."