Dutch foundation sues FIFA, KNVB for damages footballers suffered from transfer rules

The Dutch foundation Justice for Players will file a class action lawsuit against FIFA and five other football associations, including the KNVB. The foundation seeks compensation for football players who lost income due to FIFA’s transfer regulations since 2002. Justice for Players estimates that 100,000 players could be affected, potentially amounting to billions of euros, the foundation told NOS.

Justice for Players on Monday morning informed FIFA, the KNVB, and the German, French, Belgian, and Danish football associations of its intention to file a class action lawsuit. The foundation is also holding the national football associations liable because they enforce FIFA’s rules. It will file the claim with the Midden-Nederland District Court later this year.

This class action lawsuit stems from the Diarra Case. French footballer Lassana Diarra terminated his contract with Lokomotiv Moscow after a dispute. FIFA fined him over 10.5 million euros, and the transfer rules prevented him from signing with another club because any new club would also be penalized.

The French footballer challenged this, and the European Court of Justice ruled in his favor in October 2024. “The rules hinder the free movement of professional footballers who wish to unilaterally terminate their contracts,” the court said at the time.

According to Justice for Players, FIFA’s “unlawful” rules have resulted in many other footballers also losing significant income. “We are filing this claim to help achieve justice for footballers,” foundation chair Lucia Melcherts told NOS.

According to the foundation, economists have calculated that affected professional players have received approximately 8 percent less income throughout their careers due to FIFA’s transfer rules. The rules made it more difficult for them to change clubs or gave them a weaker negotiating position. Justice for Players estimates that 100,000 professional players have been disadvantaged since 2002, covering both men's and women’s football in the top and lower leagues.

Justice for Players intends to conduct a single procedure against all parties involved. “It’s a claim worth billions,” said sports lawyer Dolf Segaar, another member of the foundation’s board. “The claim is based on joint and several liability. If one party doesn’t pay, the others will have to.”