Dutch group sues FIFA over transfer regulations after midfielder ruling

A Dutch foundation representing footballers has launched a class action lawsuit against FIFA and five football associations, alleging that transfer regulations unlawfully reduced players’ earnings for over two decades.

Justice for Players, the group behind the legal challenge, announced on Monday that professional male and female footballers who played for clubs within the European Union or the United Kingdom since 2002 are eligible to join the lawsuit.

The action targets FIFA alongside the football federations of the Netherlands, France, Germany, Belgium and Denmark.

According to the foundation, FIFA’s rules on contract terminations and player transfers violated EU laws on competition and free movement of labour, a claim strengthened by a ruling from the European Court of Justice (ECJ) last year.

"Preliminary estimates indicate that the number of affected footballers may comprise approximately 100,000 players," the foundation said in a statement. 

“All professional football players have lost a significant amount of earnings due to the unlawful FIFA regulations," its Chair Lucia Melcherts added.

"The past and even current system unduly favours FIFA who has far too much unilateral power. In any other profession, people are allowed to change jobs voluntarily," she explained.

The legal case is rooted in the ECJ's ruling in the case of former Real Madrid, Arsenal and Chelsea player, Lassana Diarra, who joined Lokomotiv Moscow in 2013 before terminating his contract early due to alleged wage disputes. 

FIFA and the Court of Arbitration for Sport sided with the club and ordered Diarra to pay €10.5 million in compensation. Diarra argued that FIFA’s rules had made it difficult for him to find a new club, as any new employer would have been liable for the fee.

The ECJ ruled that such regulations contradicted EU competition laws. Some commentators have compared the judgment to the Jean-Marc Bosman ruling of 1995, which ended transfer fees for players whose contracts ended in the EU.

The Diarra ruling has not yet led to systemic changes in the global football transfer market, which is worth more than €8.6 billion annually.

Justice for Players cited economic analysis from consulting firm Compass Lexecon, which estimates that affected players earned on average 8% less over the course of their careers due to the contested regulations.