Lawsuit with potential to reshape the football landscape
The world of football is braced for a significant shake-up, as a collective lawsuit has been filed against FIFA, the German Football Association (DFB), and football associations of France, Belgium, Netherlands, and Denmark. The lawsuit, directed by the organisation "Justice for Players," aims to seek compensation for professional footballers who allegedly lost out on salary revenues due to FIFA's transfer rules.
The lawsuit follows a landmark ruling from the European Court of Justice (ECJ) in a case brought by former Real Madrid and France player Lassana Diarra. The ECJ ruled that FIFA transfer laws impede the free movement of professional footballers, a decision that gave players greater power over their careers and contributed to wage growth at the top end of the sport.
The lawsuit, advised by Jean-Louis Dupont, the lawyer for Diarra and Jean-Marc Bosman in a previous landmark case known as the Bosman ruling, claims that players earned 8% less over the course of their career due to FIFA's transfer rules. If successful, the cost to FIFA and national football associations in the EU could be massive, especially for countries with high-paying leagues like Spain, Germany, and France.
The compensation claim, potentially worth billions of euros, involves 100,000 footballers who have played professionally in the European Union over the last 23 years. Any professional footballer who has played in the European Union or the UK since 2002 is eligible to join the lawsuit.
The transfer fee, which is buying out a contract, could see a significant reduction or disappear if the lawsuit leads to normal employment rights for footballers. This could have a similarly significant impact on the sport's financial landscape, potentially making clubs more accountable for their financial management.
Clubs in these countries may face ruinous penalties, and FAs might pass on these costs as they pay players' wages. Many clubs are already loss-making, making the potential penalties problematic. The lawyer representing the lawsuit, JFP, expects the case to get to court in 2029 if a settlement cannot be reached in advance.
FIFA has been given until early September to answer the threat of legal action. The German Football Association (DFB) has received correspondence from JFP and is currently reviewing it internally, unable to comment on the content or further details.
The cost, if any, would have to be paid short term as it's a damages claim. The lawsuit could force a reevaluation of the way football clubs view their players, from intangible assets to valuable employees deserving of fair wages and employment rights.
The organisation FIFPro, the players' union, has announced its support for the lawsuit. The outcome of this legal battle could redefine the financial landscape of European football, bringing about a new era of fairness and transparency.
