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DW
5 days ago
- Business
- DW
The lawsuit that could change football – DW – 08/06/2025
Transfer fees and wages have become as much a part of the football discourse as goals and titles. But a new lawsuit aimed at FIFA and football associations including Germany's could force sweeping changes. A compensation claim that could be worth billions of euros and involve 100,000 footballers who have played professionally in the European Union over the last 23 years may alter the financial landscape of the sport. The Dutch foundation Justice for Players (JFP) has launched a lawsuit against global governing body FIFA. Also named as co-defendants in the case are the German Football Association (DFB) and those of France, Belgium, the Netherlands and Denmark. "It will amount to billions," Dolf Segaar, a lawyer and board member for JFP, told DW. "It's not only about money. It is about fair rules, which we believe are important as well. We intend to discuss the settlement for compensation, but we want as well for this to be a trigger to find new rules on behalf of clubs and players, so that there is a better functioning labor market in the football industry." The lawsuit follows a landmark ruling from the European Court of Justice (ECJ) last October in a case brought by former Real Madrid and France player Lassana Diarra. The midfielder had wanted to terminate his contract with Lokomotiv Moscow in 2014 but was unable to join a Belgian club after leaving Russia because Lokomotiv owned his registration and he did not have what was described as "just cause" for termination. The ECJ ruled that the FIFA transfer laws which applied at the time "impede the free movement of professional footballers wishing to develop their activity by going to work for a new club." The organization tweaked those laws in December, but much less stringently than advocates had hoped for. Unlike in regular EU labor law, footballers are bound by contracts they sign when they join a club or renegotiate a deal. Therefore, unlike other workers, they cannot seek work elsewhere without their employer agreeing to a fee with another interested party for a transfer – or until their contract expires. Even exiting on contract expiration is a relatively new concept in football, having been introduced only in 1995 after another landmark case known as the Bosman ruling – named after the player who brought the case. Jean-Louis Dupont, the lawyer for Diarra and Belgian player Jean-Marc Bosmanat the time, is advising JFP. The Bosman ruling changed football significantly, giving players greater power over their careers and contributing to the enormous wage growth at the top end of the sport in the last 30 years. Christina Philippou, associate professor in accounting and sport finance at the University of Portsmouth in England, thinks that a settlement or win in court for JFP could have a similarly significant impact. "Inevitably, if you are saying that somebody can walk away from a contract, then that restructures the system," she told DW. "The power shifts, and that makes it more like normal employment cases." Philippou explained that footballers are currently considered "intangible assets" by clubs, assigning them a value in a club's accounting and allowing for some leeway in terms of spreading value over a long-term contract and other such practices. This is particularly important given that European clubs often have to adhere to financial rules of profit and sustainability from domestic leagues and European football's governing body, UEFA. Given the financial interests at stake, she expects JFP to come to an agreement with the associations and FIFA that maintains some sort of tweaked transfer system, though adds that it could see transfer fees reduce greatly or disappear. "The transfer fee is effectively buying you out of your contract. Now if we revert to normal employment rights, which is effectively what this case is looking like, then that does away with this entirely." She also predicts we could see a further rise in wages for those at the top of the game, with Europe becoming even more attractive to non-EU players as a result, and perhaps a shortening of contract lengths. Long-term contracts could become redundant if a player can walk away from a deal any time without much of a transfer fee. This may, in turn, be problematic for smaller clubs who rely on player sales while players lower down the leagues would face greater risk from injury or illness should shorter term contracts become even more usual. Seegar, too, expects some change to the transfer model but thinks negotiations will mean it's not so drastic. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video "I still believe that if you are transferred from one club to the other, there still will be a kind of compensation from payment by one club to the other for the transfer of the player under an existing contract. "I'm not sure whether masses of players will terminate their agreements without just cause, because you want to go to another club, and if you are seen as an unreliable player that easily terminates his contracts, why would another club take the risk?" The Dutch lawyer told DW that, given JFP only sent the letters out on Monday, few players are signed up yet. With the case being brought in the Netherlands, those residing there will automatically be represented. But any player who has played professionally in the European Union or the UK, whether male or female, since 2002 will be eligible. He does not "believe that it is a big challenge" to attract players to join the lawsuit. "It's not important whether or not you transferred during this period. It is just because of your diminished negotiation position and the disincentives caused by the rules that you have suffered damages," he said. JFP claims players earned 8% less over the course of their career as a result of FIFA's transfer rules. Should Seegar and JFP be successful, the cost to FIFA and national football associations in the EU could be massive. For the EU countries with high-paying leagues, like Spain, Germany and France, penalties could be ruinous for clubs, who may be passed on the costs by their FAs, given they pay players' wages. "A lot of clubs are loss-making as it is," Philippou said. "That could be quite problematic. It's a lot of money and as it's a damages claim, (it) would have to be paid short term. It's not something where you can talk about how you restructure and fix the system, it's something that you have to find money for now." Reports suggest that FIFA have been given until early September to answer the threat of legal action. JFP expects the case to get to court in 2029 if a settlement cannot be reached in advance. While FIFA have not yet responded to a DW query, the DFB confirmed to DW that they had received correspondence from JFP which was "now being reviewed internally," adding that they are "currently unable to comment on the content or further details."
The Sun
7 days ago
- Business
- The Sun
Dutch players' group files billion-dollar class action against FIFA
A Dutch football players' group has announced plans for a Europe-wide class action lawsuit against FIFA, seeking billions in compensation for alleged income losses due to restrictive transfer regulations. The Dutch Foundation for Justice stated that FIFA's rules have impacted roughly 100,000 players across European member states and the UK since 2002. Consultancy firm Compass Lexecon estimates damages could total billions of euros, with foundation board member Dolf Segaar calling it a 'billion-dollar claim.' The Dutch Football Association (KNVB) is among the defendants named in the lawsuit. The case is being filed under the Dutch Act on the Settlement of Mass Damages in Collective Action (WAMCA), allowing the foundation to represent a large group of professional players. FIFA and the KNVB have not yet responded to requests for comment. A preliminary analysis suggests players collectively earned 8% less over their careers due to FIFA's regulations. 'All professional football players have lost a significant amount of earnings due to the unlawful FIFA Regulations,' said foundation chair Lucia Melcherts. The lawsuit follows a 2024 EU court ruling involving former player Lassana Diarra, which found some FIFA transfer rules violated EU laws. FIFA later adopted interim regulations modifying compensation calculations for contract breaches. The foundation is being advised by law firm Dupont-Hissel, founded by Jean-Louis Dupont, who previously handled the landmark Bosman ruling in 1995. Dupont represented Diarra in his case, calling a favorable judgment a milestone for modernizing football governance. - Reuters
TimesLIVE
04-08-2025
- Business
- TimesLIVE
Fifa faces class action over player transfer regulations
A Dutch soccer players' group is preparing a Europe-wide class action claim against Fifa and other associations, seeking compensation over alleged loss of income due to restrictive transfer rules, it said on Monday. The Dutch Foundation for Justice said world soccer governing body Fifa's rules had affected about 100,000 players in European member states and the United Kingdom since 2002. The foundation added that consultancy firm Compass Lexecon had estimated 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.
The Star
04-08-2025
- Business
- The Star
Soccer-FIFA faces Dutch class action over player transfer regulations
FILE PHOTO: Soccer Football - FIFA Club World Cup - Group D - Esperance de Tunis v Chelsea - Lincoln Financial Field, Philadelphia, Pennsylvania, U.S. - June 24, 2025 General view of the FIFA logo before the match REUTERS/Lee Smith/File Photo (Reuters) -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 on Monday. 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 euros ($11.56 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. ($1 = 0.8654 euros) (Reporting by Aadi Nair in Bengaluru; Editing by Ken Ferris)
Straits Times
04-08-2025
- Business
- Straits Times
FIFA faces Dutch class action over player transfer regulations
Sign up now: Get ST's newsletters delivered to your inbox FILE PHOTO: Soccer Football - FIFA Club World Cup - Group D - Esperance de Tunis v Chelsea - Lincoln Financial Field, Philadelphia, Pennsylvania, U.S. - June 24, 2025 General view of the FIFA logo before the match REUTERS/Lee Smith/File Photo 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 on Monday. 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 euros ($11.56 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
