Latest news with #transferrules
BBC News
6 days ago
- Business
- BBC News
Legal case a 'seismic confrontation' between players and Fifa
"A seismic legal confrontation between players and Fifa."The view of former Fulham midfielder-turned-lawyer Udo Onwere when asked to assess the significance of the compensation claim launched against Fifa this week on behalf of current and former professional footballers over transfer Monday, Dutch foundation Justice for Players (JFP) said it had started a class action lawsuit against the sport's world governing body, along with the football associations of France, Germany, the Netherlands, Belgium and argues that 100,000 footballers playing in Europe since 2002 could have lost income as a result of "unlawful" Fifa regulations, and that "preliminary analysis" shows that damages could amount to several billion case is the result of last year's ruling by the highest European court that Fifa regulations over some football transfers broke EU October, the European Court of Justice (CJEU) found in favour of former Chelsea and Arsenal midfielder Lassana Diarra after he argued some of the rules restricted his freedom of movement and breached competition law, and sued Fifa."This class action could rewrite the rules governing player mobility across the global football industry" says Onwere, who is now a partner at law firm Bray and Krais."What distinguishes this case from previous skirmishes with the governing body is its sheer scale and complexity... The outcome of this litigation could usher in a new era of transfer regulations and governance - one where contractual stability is balanced with player autonomy."It could prove to be as transformational as the landmark 1995 Bosman ruling."Such a comparison is notable, because JFP is being advised by Diarra's Belgian lawyer Jean-Louis Dupont, who also won the landmark 1995 case at the CJEU on behalf of ex-player Jean-Marc ruling dramatically changed the sport, meaning footballers could choose to run down their contracts and move clubs on a free transfer, with teams no longer able to demand compensation for out-of-contract years on, some now believe this latest case could result in players being able to terminate their own contracts, without paying compensation, before those deals come to an Sport has been told that Fifa has until the start of September to respond to the threat of legal action. Background Last year, the CJEU said that, by refusing to provide Diarra with an international transfer certificate (ITC) for a proposed move to Belgian club Charleroi in 2015 after he was found to have breached his contract with Lokomotiv Moscow (for which he was ordered to pay £8.4m to the Russian club and suspended), Fifa showed that its rules "impede the free movement of professional footballers wishing to develop their activity by going to work for a new club".Diarra's lawyers contested the Fifa rule which makes a club wishing to sign a player jointly liable for compensation to a player's old club, and at risk of sporting sanctions, in cases where the player's previous contract was terminated without just also challenged a rule which allows the national association of a player's former club to withhold an ITC where there was a dispute, which they said also hindered the court ruled that Fifa should not be able to use the ITC system to prevent players who have breached a contract from moving and working where they the time Fifa said it had been "continuously improving" the transfer system "for the benefit of players, clubs, leagues and member associations, to ensure that players can train, be developed and have stability, while safeguarding the integrity of competitions by implementing a robust regulatory framework for the international transfer system".It then adapted its transfer regulations on an interim basis, but accepted they could be open to challenge. JFP claims that affected professional footballers have earned approximately 8% less over the course of their career as a result of Fifa's rules, and its litigation could mean players can terminate their own contracts. 'A huge hit' Lucia Melcherts, the chair of JFP, said: "All professional football players have lost a significant amount of earnings due to the unlawful Fifa regulations. In any other profession, people are allowed to change jobs voluntarily. The same should be true in football, particularly as the average career span of a professional footballer according to a FIFPro study is only eight years long.""FIFA will find it difficult to put forward a robust defence to these claims in the face of a clear decision by the CJEU in the Diarra case that there was anti-competitive behaviour over several years", says Daniel Gore, an arbitration lawyer at Withers."The anticipated floodgate of claims has commenced, and Fifa's finances could take a huge hit at a time they are flying high after the expanded Club World Cup this year and World Cup in 2026."In a statement, the European division of global players' union Fifpro, which backed Diarra's case, said the action "represents the anticipated practical response" to the CJEU ruling, "effectively centralising advocacy for affected players' interests that have broad implications for the football industry".It said it would "thoroughly assess" the foundation's move, adding it "will always support fair compensation for affected players whose rights were breached, while driving meaningful reform towards inclusive governance structures in international football."This approach aims to shield past, current and future generations of players from unilateral and arbitrary decision-making processes that undermine or harm fundamental workers' rights and fair competition."Fifa has been approached for comment.
Daily Mail
6 days ago
- Sport
- Daily Mail
FIFA hit by 'major class-action lawsuit' by players' group who are seeking BILLIONS in compensation over transfer rules after EU law breach last year
A group of current and former footballers are reportedly set to take legal action against FIFA over the world football governing body's current transfer rules. The Justice for Players group (JfP) is believed to have launched a class-action lawsuit, seeking billions in compensation for individuals who have played in the United Kingdom or the European Union and have potentially missed out on earnings due to the current transfer regulations in place. The Dutch-based group's lawsuit is also against the football associations within France, Germany, Belgium, Denmark, and the Netherlands. They are said to have until September to respond. JfP have claimed that up to 100,000 footballers from the men's and the women's game are involved in the case, which is being heard in the Dutch district court of Midden Nederland due to laws within the country being propitious to the size of the class action. The FA in England are not said to be involved in the lawsuit, but they are believed to have been sent a copy of the letter. The suit has the potential to lead to radical change in the sport, and could lead to players having the ability to terminate their own contracts. JfP's claim follows the European Court of Justice (CJEU) ruling that some of FIFA's rules on player transfers are illegal in accordance with European Union legislation, during the Lassana Diarra case back in October 2024. The former Chelsea and Real Madrid star was involved in a decade-long legal battle with the governing body, after he was ordered to pay 10.5 million euros (£8.8million) for a breach of contract with former side Lokomotiv Moscow in 2014. FIFA also suspended Diarra for 15 months, with the Court of Arbitration for Sport upholding their claims, which in turn blocked a move to Belgian club Charleroi. This led to a countersuit from the former French international. Diarra won the case with the CJEU, with the EU's highest court claiming the transfer rules in place, which pertain to the freedom of movement between football clubs across borders, are contrary to European Union law on competition and freedom of movement. The JfP, which has Franco Baldini, who was England assistant manager under Fabio Capello, on its board, are being advised by Diarra's lawyer Jean-Louis Dupont. Baldini said: 'As a former professional footballer, agent and someone who has worked in football in various managerial capacities, I have had first-hand experience of how much control and power FIFA has over the players. 'So I am very proud to be part of Justice For Players and to be part of something that could help change the existing system and make football more inclusive and more sustainable.' Belgian lawyer Dupont is famous for the landmark Jean-Marc Bosman case, which changed regulations in 1995, allowing players in the EU to move clubs for free upon the expiration of their contract.'
The Guardian
7 days ago
- Sport
- The Guardian
Fifa facing multibillion-pound compensation claim from players
Fifa is facing a multibillion-pound claim for compensation from a group of current and former players after last year's ruling by the European court of justice (CJEU) that its transfer rules are unlawful. The Justice for Players foundation, a Dutch group that has the former England assistant manager Franco Baldini on its board, has served notice of its intention to file a class action against Fifa and the football associations of France, Germany, the Netherlands, Belgium and Denmark. Justice for Players is seeking compensation on behalf of players who have lost income because of Fifa's transfer rules since 2002. It says the legal case will involve about 100,000 players. The claim will be filed in the district court of Midden Nederland, with the Netherlands chosen as the jurisdiction because Dutch law permits claims from anyone who has worked within the European Union and the United Kingdom. The Football Association is understood to have been sent a copy of the letter before action. Although not named as a defendant, it could be added later. Fifa and the five domestic FAs have been given until September to respond. The compensation claim is the result of the CJEU judgment last October in the case brought by former Chelsea and France midfielder Lassana Diarra, who sued Fifa after the world governing body refused to issue him with an international transfer certificate (ITC) to join the Belgian club Charleroi in 2016 after he was found to have breached his contract with Lokomotiv Moscow two years earlier. Fifa fined Diarra €10.5m and suspended him from football for 15 months for breaching his contract, in a ruling upheld on appeal at the court of arbitration for sport. After blocking his registration at Charleroi, Fifa was then hit with a counterclaim from Diarra, with the CJEU ruling that its transfer regulations were unlawful. Sign up to Football Daily Kick off your evenings with the Guardian's take on the world of football after newsletter promotion The CJEU found that the Fifa regulations on the status and transfer of players infringed EU competition law and the right to free movement of workers. Fifa has amended its transfer regulations, although the new rules have not been accepted by the international players' union, Fifpro. The Justice for Players foundation is understood to have been set up this year with the intention of bringing a mass legal action. Diarra's lawyer, Jean-Louis Dupont, who won the landmark case at the CJEU on behalf of Jean-Marc Bosman that established the principle of free movement for players out of contract, in 1995, is advising Justice for Players. The legal letter sent to Fifa makes reference to the class action being a multibillion claim. This figure is understood to be based on independent analysis from economists at Compass Lexecon, who have estimated that players would have earned about 8% more over their careers since 2002 had Fifa's transfer regulations not been unlawfully restrictive. The CJEU judgment ruled that Fifa's regulations restricted free movement by establishing unlawful criteria for determining compensation to be paid by a player who breaks their contract, allowing the national federation of the former club to withhold a player's ITC, making the player's new club liable for the compensation to be paid to the former club and allowing Fifa to impose disciplinary sanctions on the player and their new club. Fifa has been contacted for comment.
New York Times
7 days ago
- Sport
- New York Times
FIFA facing class-action lawsuit from Justice for Players group over transfer rules
FIFA is facing a class-action lawsuit over its transfer rules that could include claims from every professional footballer who has played in the European Union or the United Kingdom since 2002, according to the newly created Dutch foundation behind the move. Launched on Monday, the Amsterdam-based Justice for Players (JfP) is the first group to attempt legal action against world football's governing body using the Court of Justice for the European Union's (CJEU) ruling in the Lassana Diarra case last October. The former Chelsea, Arsenal and Real Madrid midfielder won his decade-long legal battle against FIFA and the Belgian FA when the EU's highest court ruled that some of FIFA's Regulations on the Status and Transfer of Players (RSTP) were against European competition law. The case hinged on a FIFA decision to fine Diarra €10.5million (£9.1million/$12.1million) and ban him for 15 months for breaching his contract with Russian side Lokomotiv Moscow in 2014 'without just cause'. The France international was blocked from joining Belgian side Charleroi during his period of suspension as the RSTP regime forced the relevant national governing body to withhold the International Transfer Certificate, a player needs to complete a cross-border move and it also made the player's new club 'jointly and severally liable' for any compensation he owed his former club. Advertisement Diarra appealed against FIFA's ruling at the Court of Arbitration for Sport but only managed to shave some money off his fine, so he launched a counter-suit against the football establishment in a Belgian court that eventually worked its way to the CJEU, where he achieved a win which lawyers have been debating ever since. Some believe it has called into question the entire transfer system, opening up FIFA to billions of euros and pounds in compensation, while others think the ruling's impact will be more limited as it only challenged two elements of the rules: how the compensation a club is due when a player unilaterally terminates their contract is decided, and the idea that their new club is collectively responsible for the breach. The founders of JfP, unsurprisingly, are in the former camp and they believe FIFA's regulations had a detrimental affect on every professional player's – male and female – salary. The logic here is that players have simply not exercised their right to terminate contracts because the consequences were so onerous and uncertain, whereas clubs have frequently ripped up deals knowing the system was stacked in their favour. Citing 'preliminary analysis' by economic consultancy firm Compass Lexecon, which also provided advice to the people behind the European Super League plan, JfP says it believes more than 100,000 players have lost approximately eight per cent of their potential career earnings because of FIFA's unlawful rules. Its case against FIFA and the football federations of Belgium, Denmark, France, Germany and the Netherlands will be filed in the Dutch district court of Midden Nederland because the country's legislation is the most conducive to large class actions. And while it just FIFA and these five federations for now, more can be added later. Advertisement JfP's board is comprised of two highly-experienced Dutch lawyers, Lucia Melcherts and Dolf Segaar, and former England assistant manager and Tottenham Hotspur technical director Franco Baldini. But it is also advised by Jean-Louis Dupont, Jean-Marc Bosman's lawyer in perhaps the most significant lawsuit in football history as it gave players no longer under contract the right to move without a fee in 1995. The costs of the class action will be met by Deminor, an international litigation funder that takes on cases in return for a cut of any awarded damages. According to JfP, this will be capped at 25 per cent of any damages plus the costs of the proceedings. Current and former players are now encouraged to get in touch with JfP via its website, with the case starting in the first quarter of 2026. It is then likely to take at least three years before there is a ruling. FIFA has not yet responded to a request for comment but European players' union FIFPro Europe, which backed Diarra's case, issued a statement that said this is 'the anticipated practical response' to the CJEU ruling and it 'recognises the fundamental right of players to pursue justice in what has constituted the most significant and long-lasting non-poaching agreement within the sports industry'. However, there was a hint of olive branch in its final paragraph, as the players' union said 'it remains committed to pursuing constructive dialogue and collaborative solutions with relevant football and public authorities to safeguard the long-term sustainability of football'.
Times
7 days ago
- Business
- Times
Radical legal case could let players terminate their own contracts for free
New legal action that could lead to law changes allowing players to terminate their contracts with clubs without paying huge compensation has been launched across Europe. A class action by a group called Justice For Players is seeking compensation potentially totalling billions of pounds for alleged loss of income due to restrictive transfer rules. The action has been launched against Fifa and the FAs of France, Germany, Belgium, Denmark and the Netherlands. But the Dutch-based group said any of the estimated 100,000 male or female players who have played for a club in the EU or the UK since 2002 are eligible to join the claim. The English FA is not facing a legal claim at present but has been sent a copy of the legal action by the group. It follows a Court of Justice of the EU (CJEU) ruling in October 2024 in a case brought by the former Chelsea, Arsenal and Real Madrid midfielder Lassana Diarra, who was ordered to pay €10million (£8.7million) by Fifa for leaving the Russian club Lokomotiv Moscow one year into a four-year deal. The CJEU said some of Fifa's rules on player transfers went against EU laws and freedom of movement principles, which led to Fifa adopting an 'interim framework' on transfer rules while it looked at the legal implications of the ruling. Under Fifa's rules, players have in effect been prevented from leaving their clubs unilaterally in the middle of their contract and agreeing a free transfer elsewhere due to the threat of being forced to pay huge compensation. The CJEU ruling means any transfer fee paid for the player cannot form part of the compensation, and the new legal action claims that people in any other profession are allowed to leave their jobs in the middle of a contract. The argument in favour of the existing transfer system is that it benefits smaller clubs who earn income from selling players, and that complete freedom of movement would lead to the richest clubs paying enormous salaries to sign the best players without compensating the clubs who developed them. Franco Baldini, the England assistant manager under Fabio Capello, is one of the board members of Justice For Players. He said: 'As a former professional footballer, agent and someone who has worked in football in various managerial capacities, I have had first-hand experience of how much control and power Fifa has over the players. 'So I am very proud to be part of Justice For Players and to be part of something that could help change the existing system and make football more inclusive and more sustainable.' Justice For Players said it would be advised by the law firm Dupont-Hissel, founded by Jean-Louis Dupont, the Belgian lawyer who won the Bosman ruling in 1995 that cleared the way for players in the EU to move to other clubs at the end of contracts without a transfer fee being paid. The players' union Fifpro Europe said the action was an 'anticipated practical response to the CJEU's Diarra judgment, effectively centralising advocacy for affected players' interests that have broad implications for the football industry'. Justice For Players said its consultancy firm Compass Lexecon had estimated that damages could run into billions of euros.
