FIFA Faces Multi-Billion Pound Class Action Lawsuit in the Netherlands Over Transfer Regulations Controversy
Former France International Diarra Sanctioned by FIFA for Breach of Contract
EU's Highest Court Rules "FIFA Transfer Rules Violate EU Law"
FIFA Partially Revises Regulations, but International Players' Union Rejects Changes
The Guardian reported on the 4th (local time) that the F?d?ration Internationale de Football Association (FIFA) is facing a large-scale damages lawsuit in the Netherlands. Observers suggest that the impact of this lawsuit and its verdict could lead to another wave of strengthened player rights and structural reform of the transfer market, following the landmark 1995 ruling in favor of Belgian footballer Jean-Marc Bosman.
According to the Guardian, a group called "Justice for Players," established in the Netherlands, has announced its intention to file a class action lawsuit against FIFA as well as the football associations of France, Germany, the Netherlands, Belgium, and Denmark.
The group stated that professional footballers who have played for clubs within the EU or the UK since 2002 and have suffered income losses due to FIFA's transfer regulations can join the lawsuit. They explained that they chose to file the lawsuit in the Netherlands because local law allows claims in Dutch courts even for work performed within the EU or UK.
This damages claim is a follow-up to the October of last year, when the Court of Justice of the European Union (CJEU) ruled that FIFA's regulations were illegal in a case brought by former Chelsea and France national team midfielder Lassana Diarra.
Diarra attempted to transfer to Charleroi in Belgium in 2016, but FIFA refused to issue his International Transfer Certificate (ITC) on the grounds that he had breached his contract with Lokomotiv Moscow two years earlier, prompting him to file a lawsuit.
At the time, FIFA imposed a fine of 10.5 million euros (approximately 15.8 billion won) and a 15-month suspension on Diarra for breach of contract, and the Court of Arbitration for Sport (CAS) upheld this decision. However, the CJEU ruled that FIFA's transfer regulations violated EU competition law and the free movement of workers.
Afterwards, FIFA partially revised its transfer regulations, but the international footballers' union (FIFPro) still does not accept these changes.
Reuters reported, "FIFPro described this lawsuit as the biggest challenge to the system since Belgian footballer Jean-Marc Bosman won his case in 1995."
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The legal letter sent by the foundation to FIFA specified that this class action lawsuit is "worth several billion pounds." According to Compass Lexecon, an economic analysis consulting firm, players would have earned on average about 8% more income since 2002 if it had not been for FIFA's unlawful regulations.
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