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The Diarra case: the EU Court vs FIFA. New rules for the football transfer market

Diarra

In 2024, the Court of Justice of the European Union issued a ruling that could revolutionize the international football transfer market. The case centers around the legal dispute between former footballer Lassana Diarra and his former club, Lokomotiv Moscow.

The Lassana Diarra Case

The case began in August 2014, when Lokomotiv Moscow unilaterally terminated Diarra’s contract, accusing him of breaching contractual obligations. The Russian club demanded €20 million in compensation, while Diarra claimed unpaid wages. Meanwhile, Diarra reached an agreement to transfer to Charleroi, a Belgian club. However, Charleroi withdrew from the deal due to the risks associated with the sanctions imposed by FIFA regulations, which blocked the transfer until the legal dispute was resolved.

Without a club for almost a year, Diarra found himself without a contract and unable to sign with other teams. This episode sparked a long legal battle, culminating in the EU Court’s verdict, which declared some of FIFA’s regulations to be in conflict with European law. The Court ruled that these rules hindered the free movement of players within the EU and imposed disproportionate financial and sporting penalties on both players and new clubs.

Implications of the Ruling for Professional Footballers

The EU Court’s ruling opens new possibilities for footballers seeking to terminate contracts with clubs. Prior to this decision, those who terminated a contract without just cause risked heavy financial penalties and suspension from competitions, creating risks for clubs willing to sign them. With the ruling, these regulations were deemed disproportionate and in violation of fundamental workers’ rights, particularly with regard to free movement within the European Union.

An interesting example of how other countries handle contract terminations is the Spanish model, where a “buyout clause” is required in footballers’ contracts. This clause sets a predetermined amount that the player or the club will pay in case of early termination. This mechanism avoids the risk of unpredictable legal disputes or financial sanctions, providing greater certainty to both players and clubs interested in acquiring them.

The Court has thus urged FIFA to consider similar systems to allow players to terminate contracts with more freedom and transparency, without unnecessarily burdening clubs or blocking players’ careers.

Possible Changes to FIFA Rules. New Scenarios for Coaches and Managers

Following the EU Court’s ruling, FIFA will be forced to amend its Regulations on the Status and Transfer of Players (RSTP), particularly the articles concerning contract termination without just cause. The ruling does not completely eliminate penalties but requires them to be less punitive and more proportionate, aligning with the principles of free movement of workers within the European Union.

For coaches and managers, this change demands a new approach to contract management and the transfer market. They will need to consider player mobility as a key factor in squad planning. It will be essential to develop contractual strategies that include clear and transparent termination clauses, avoiding prolonged legal disputes. Additionally, managers will have to prepare for a more dynamic market, where players could switch teams more easily.

Source: ilsole24ore 5 October 2024

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