The global soccer transfer market, worth more than $10 billion each season, is facing a revolutionary overhaul or a nuanced evolution following last week's ruling by the European Court of Justice in the Lassana Diarra case.By ruling that some FIFA regulations on player transfers are contrary to EU legislation relating to competition and freedom of movement, the bloc's top court has paved the way for deep changes in the sport's economy.
Here is a look at the key elements of the case and the possible impact of the landmark ruling.Lassana Diarra is a former much-traveled footballer whose career saw him play for prestigious clubs such as Chelsea, Paris Saint-Germain and Real Madrid.
He represented France 34 times.At one point in his career, Diarra moved to the Russian league.
It’s a dispute with Lokomotiv Moscow that triggered the legal case examined by the European Court of Justice (ECJ).Diarra signed a four-year contract with Lokomotiv in 2013.The deal was terminated a year later after he was unhappy with alleged pay cuts.
Lokomotiv applied to the FIFA dispute resolution chamber for compensation and the player submitted a counterclaim seeking compensation for unpaid wages.The Court of Arbitration for Sport found the Russian club terminated the contract “with just cause” and the player had to pay 10.5 million euros ($11.2 million).
Diarra said his search for a new team was hampered by FIFA rules stipulating that any new club would be jointly responsible with him for paying compensation to Lokomotiv.Free movement is a fundamental right of workers in the European Union within the single market.On that basis, the EU’s top court said that the FIFA rules, including the one that resulted in the refusal to provide Diarra with an international transfer certificate (ITC) for a move to Charleroi, restricted his freedom of movement.The court also found that FIFA regulations breached the bloc’s competition law because they aim at restricting and preventing “cross...