How Lassana Diarra's FIFA dispute could change football's transfer ruling

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How Lassana Diarra's FIFA dispute could change football's transfer ruling
Photo: PA
Former Chelsea and Portsmouth midfielder Lassana Diarra is the man at the centre of what could be a revolution regarding player transfers and contracts.

Diarra challenged FIFA rules following a dispute with Lokomotiv Moscow dating back to a decade ago.

Lokomotiv had terminated Diarra's contract, accusing him of forcing their hand by refusing to play after a disagreement over a proposed salary reduction.

After the termination, Diarra was ordered to pay a hefty fine of €10 million to Lokomotiv for breach of contract by the Court of Arbitration for Sport (CAS).

During this time, the Frenchman received a contract offer from Belgian side Charleroi, who wanted clarification from FIFA that they would not be liable to pay any of the money owed to Lokomotiv.

FIFA could not make that guarantee and the move never happened.

As a result, Diarra brought new legal action against FIFA claiming a loss of earnings.

The former Arsenal and Real Madrid man claimed his search for a new club was hampered by FIFA rules stipulating that any new side would be jointly responsible with him for paying compensation to Lokomotiv.

Diarra's case was heard by the European Court of Justice (ECJ) in Luxembourg, the highest court in Europe.

His legal team argued that some of the rules imposed by FIFA restricted his freedom of movement, breaching competition law.

After a long legal battle, the ECJ ruling has now declared current regulations are in breach of EU Law on the free of movement of people.

These FIFA regulations, part of the organisation's Regulations on the Status and Transfer of Players (RSTP), have been deemed unlawful as they potentially violate European Union law, particularly the ones governing freedom of movement and competition within the EU.

Diarra's lawyer was Jean Louis Dupont, the man who had previously transformed the sport in the mid-1990s by successfully working for the introduction of the Bosman ruling, which allowed players to move for free once their contract was up.

If the Court has made a strong ruling, it could effectively declare the entire current system is in breach of EU Law.

The decision against FIFA's rules is likely to seismically shift the bargaining power in favour of players and away from clubs, who could no longer be able to hold on to players with the hope of attracting significant transfer fees.

By contrast, players will potentially be able to break contracts without consequences, signing on with new clubs rather than feeling the need to run down their contracts.

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