Fifa faces Dutch class action over player transfer regulations after Diarra ruling

Malay Mail

3 days ago

AMSTERDAM, Aug 4 — A Dutch soccer players' group is preparing a 'potentially billion-dollar' class action claim against Fifa and other soccer associations, seeking compensation over alleged loss of income due to restrictive transfer rules, it said today.
The Dutch Foundation for Justice said world soccer governing body Fifa's rules had affected approximately 100,000 players in European member states and the United Kingdom since 2002.
The foundation added that consultancy firm Compass Lexecon had estimated that damages could run into billions of euros, with the foundation's board member Dolf Segaar telling Dutch news agency NOS that 'it is a billion-dollar claim'.
The Dutch Football Association (KNVB) is among the associations to be named in the suit.
'This case is being brought in the Netherlands under the Dutch Act on the Settlement of Mass Damages in Collective Action (WAMCA), which allows this legal action to be launched by JfP on behalf of a large group of professional footballers,' it added.
Fifa and the KNVB did not immediately respond to emailed requests for comment.
The foundation added that a preliminary analysis from global economic consulting company Compass Lexecon estimated that professional footballers collectively earned around 8% less over their careers than they would have due to Fifa's regulations.
'All professional football players have lost a significant amount of earnings due to the unlawful Fifa Regulations,' foundation chair Lucia Melcherts said in a statement.
''Justice for Players' is bringing this claim to help achieve justice for footballers and fairness.'
Diarra ruling
The foundation added that the case was launched following a ruling on French player Lassana Diarra, who was fined €10 million (RM49.04 million) by Fifa for leaving Lokomotiv Moscow one year into a four-year deal.
In October 2024, the Court of Justice of the European Union said some of Fifa's rules on player transfers went against European Union laws and free movement principles in the case linked to former Chelsea, Arsenal and Real Madrid player Diarra.
Following the ruling by the EU's top court, Fifa in December adopted an interim framework concerning the Regulations on the Status and Transfer of Players.
The interim regulatory framework affects the calculation of compensation payable if there is a breach of contract and the burden of proof in relation to both compensation payable and an inducement to breach a contract.
Justice for Players said it will be advised by law firm Dupont-Hissel, founded by Jean-Louis Dupont.
Dupont is the same lawyer who took the landmark case of Belgian Jean-Marc Bosman, which in 1995 cleared the way for players in the European Union to move to other clubs at the end of contracts without a transfer fee being paid.
Dupont-Hissel also represented Diarra in his case against Fifa, with Dupont saying in 2024 that a judgment backing the player would be a milestone in modernising football governance.
He added that it would allow players' unions and club associations to regulate their employment practices. — Reuters