The European Union's top court has ruled that certain FIFA regulations on player transfers may conflict with EU legislation concerning competition and freedom of movement.
This landmark decision stems from a legal challenge brought by former France international Lassana Diarra, following a dispute with Russian club Lokomotiv Moscow.
The court stated, "The rules in question are such as to impede the free movement of professional footballers wishing to develop their activity by going to work for a new club."
This ruling could have significant implications for the football transfer market and players' rights within the European Union.
The European Union's top court has ruled that certain FIFA regulations on player transfers may conflict with EU legislation concerning competition and freedom of movement
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Diarra's dispute with Lokomotiv Moscow began in 2013 when he signed a four-year contract with the Russian club.
However, the relationship soured after just one year, with Diarra unhappy with alleged pay cuts.
Lassana Diarra's dispute with Lokomotiv Moscow began in 2013 when he signed a four-year contract with the Russian club.
PA
The club sought compensation through FIFA's dispute resolution chamber, whilst Diarra countered with a claim for unpaid wages.
The Court of Arbitration for Sport ultimately ruled in favour of Lokomotiv Moscow, determining that they had terminated Diarra's contract with just cause. As a result, Diarra was ordered to pay €10.5 million in compensation to the club.
Lassana Diarra pictured during his time at Lokomotiv Moscow
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This ruling set the stage for Diarra's subsequent legal challenge against FIFA's transfer regulations.
Diarra claimed that FIFA rules hindered his search for a new club, as they stipulated that any new team would be jointly responsible for paying compensation to Lokomotiv Moscow.
The former Real Madrid player alleged that a potential deal with Belgian club Charleroi fell through due to these regulations.
Diarra subsequently sued FIFA and the Belgian federation in a Belgian court, seeking €6 million in damages and lost earnings.
The case, supported by global players union FIFPro, has been referred to the European Court of Justice for a ruling.
This legal challenge predates FIFA president Gianni Infantino's election in 2016, who has since prioritised modernising transfer market rules.
