Transfer fees Q&A: How landmark court ruling could mean NFL-style player trades and stars suing clubs for millions
FORMER Chelsea, Arsenal and Portsmouth midfielder Lassana Diarra has won his landmark case at the European Court of Justice.
And the decision could have major ramifications on the future of football transfers.
APLassana Diarra won his landmark case against Fifa at the European Court of Justice[/caption]
GettyThe ruling could spell the end of transfer fees entirely[/caption]
Will an NFL-style draft and the complete scrapping of transfer fees really come to pass?
SunSport explains what it was all about – and what it might mean.
What was the case about?
Diarra argued Fifa’s transfer rules were illegal after the world body backed Lokomotiv Moscow’s claim that he had broken his contract by refusing to train with them.
Is that it?
No.
Belgian club Charleroi wanted to sign Diarra but were told they would have to pay the money – which was halved from £16m to £8m after the player appealed to the Court of Arbitration for Sport.
He was fined by Moscow, while Fifa refused to issue an International Transfer Certificate unless they coughed up
What did the Court say?
Basically, a 3-0 victory for Diarra and his lawyer, Jean-Louis Dupont.
Pointing to Moscow’s compensation claim after Diarra was deemed to have broken his contract, the proposed sanction against Charleroi and Fifa’s stance, the ECJ said: “All of those rules are contrary to EU law.”
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Okay, so what does that mean?
Theoretically, if the ECJ ruling is now ratified by the court in Mons, Belgium, where the case began, players will have the right to break their contracts and switch clubs without a fee changing hands – just like any employee in any other industry.
Hang on – does that mean the END of transfer fees?
Potentially, yes.
Although players would have to want to move.
We would basically end up with a US-style “collective bargaining” model where players would be free to move within transfer windows without impunity.
Clubs might be able to “trade” players – swap deals – but with no extra cash changing hands.
Is everybody agreed about this?
Absolutely not.
Fifa claimed the ruling “only puts in question two paragraphs of two articles” of its transfer regulations.
Yet the Judges said the current rules were “prohibited” under EU law and “anti-competitive” as they “limit the freedom of action” of players to change employer.
So what happens next?
Fifa will try to find a way of tweaking its rules to meet with the approval of the Court.
But that seems unlikely given the tone of the ruling.
Inside Lassana Diarra’s legal case with Fifa
LASSANA DIARRA’S case with Fifa dates back to 2014 when he was playing for Lokomotiv Moscow.
The former Chelsea and Real Madrid midfielder was in a dispute with Lokomotiv over wages – with the Russian side ultimately terminating his contract.
The case was referred to Fifa’s Dispute and Resolution Chamber (DRC) which ruled against Diarra, fining him £16MILLION.
During this time, Diarra received a new contract offer from Belgian side Charleroi.
But Charleroi wanted clarification from Fifa that they would not be liable to pay any of the money owed to Lokomotiv.
Fifa could not make that guarantee and the move never happened.
As a result, Diarra brought new legal action against Fifa and the Belgian league claiming a loss of earnings.
That started the long process that has led to this week’s groundbreaking judgment.
Does that mean players will be able to move whenever they want?
No.
The Court confirmed the legitimacy of the current transfer window regulations which “ensure the stability of squad compositions during a given season” by banning “unilateral termination” of contracts during the campaign.
Like other businesses, players seeking to move may have to serve notice periods, potentially up to 12 months.
Anything else?
If Dupont is right, the result will mean a large number of players who can claim they were restricted from moving clubs by the current rules will be able to make back-dated compensation claims, running into millions of pounds.
And how soon could this all start to happen?
Once the court in Mons ratifies the ECJ ruling, which might take a few months, it would come into effect across Europe.
That’s all right then. We’re not in the EU any more, are we?
No.
But English clubs, the FA and the leagues would have no option but to fall into line as Premier League clubs could argue any attempts to hold them to the current regulations breach competition law as they will be put at a disadvantage to their rivals in Europe.
GettyFormer France international Diarra was at Chelsea for the 2005-06 title win[/caption]
EPADiarra’s case was heard at the European Court of Justice in Luxembourg[/caption]
