Many smaller clubs, which are often the most affected by these rules, will continue to push for a relaxation of the rules.

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FIFA relieved after CJEU ruling on Diarra case

FIFA breathed a sigh of relief on Friday after the Court of Justice of the European Union (CJEU) upheld the legality of most of its player transfer regulations. The verdict, handed down in the case of ex-footballer Lassana Diarra, leaves only some aspects of the system in doubt, which has been welcomed by world football's highest authority.

The dispute began when Diarra, a former player for Real Madrid, Chelsea and other top European clubs, unilaterally broke his contract with Lokomotiv Moscow in 2014. When he tried to sign for Belgian club Charleroi, he hit a stumbling block: FIFA rules prevented the transfer from being completed due to a contractual dispute with his former club. This sparked a legal battle that has ended up involving the European Union's highest court.

The key points of the ruling

The CJEU has ruled that, while FIFA's transfer regulations are valid for the most part, there are two aspects that violate EU law. One of these is the rule that the new club of a player who terminates his contract without just cause must be vicariously liable for the compensation he has to pay to his former club. In addition, the possibility for national federations to block the transfer of a player by refusing to issue an international transfer certificate for the duration of the dispute is also criticised.

According to the court, such measures restrict the free movement of players and limit competition between clubs. By imposing these obligations on the new club, it discourages the recruitment of players in conflict with their former clubs, which directly affects their professional mobility.

However, the decision was not entirely negative for FIFA. The CJEU also recognised the legitimacy of most of the transfer system, arguing that the general rules are justified in order to maintain contractual stability and the integrity of competitions.

FIFA's reaction

Following the ruling, FIFA said it was ‘satisfied’ that the court had upheld the validity of the fundamental principles of its regulations. Although two paragraphs were found to be contrary to EU law, the organisation considered the outcome as an important endorsement of its global transfer system.

‘We take note of today's decision and are satisfied that the key principles have been confirmed,’ FIFA sources said after the ruling. They said they would discuss the verdict with the parties involved to decide on the next steps, although they are confident that the current system does not need to be fundamentally changed.

The Diarra case: the trigger for the conflict

The case of Lassana Diarra was the trigger for the whole process. The French midfielder broke his contract with Lokomotiv Moscow in 2014 and, in search of a new team, tried to join Belgian club Charleroi. However, FIFA rules, which made the new club liable to pay compensation for the breach of contract, meant that the transfer was thwarted.

Diarra sued FIFA before a Belgian court, which in turn asked the CJEU to examine whether these rules respected EU law. In that context, the CJEU has stated that, although some rules in FIFA's regulations are restrictive, they are generally justified in the interest of maintaining stability in football competitions.

Future implications

The Belgian court that referred the matter to the CJEU will now be responsible for implementing the ruling. FIFA, for its part, will have to revise its regulations to comply with the European guidelines, although it is likely that only the specific points that have been declared illegal will be modified.

As for the Diarra case, it is hoped that this ruling will facilitate the process so that similar situations in the future do not result in blocking transfers, something that affects both players and clubs wishing to strengthen their squad.

Conclusion

A system under scrutiny

Despite FIFA's relief at the endorsement of its regulations, the Diarra case has brought to the table a debate about the fairness of the current transfer system. Many smaller clubs, who tend to bear the brunt of these rules, will continue to push for a relaxation of the rules. In the meantime, the big clubs will continue to navigate in a sea of clauses, million-dollar transfers and ironclad contracts.

The CJEU ruling is a small adjustment to a system that has been the backbone of the international transfer market for years, but it remains to be seen how it impacts on the relationship between players, clubs and federations in the future. For now, world football continues to turn, albeit with some adjustments to the rules.