Following a European Union ruling that found some aspects of its transfer system unlawful, FIFA has announced it will initiate discussions with stakeholders to revamp the regulations. The ruling, which stemmed from a high-profile case involving former French player Lassana Diarra, specifically targeted the compensation required of players who break contracts early without a justifiable reason.
FIFA, in a statement released on Monday, outlined its plans to engage stakeholders in a dialogue to address concerns regarding Article 17 of its Regulations on the Status and Transfer of Players (RSTP). This article deals with the consequences of terminating a contract “without just cause” and includes provisions for compensation to be paid by the player to the former club, with the new club also being jointly liable.
The European Union’s Court of Justice (CJEU), in its October 4th ruling on Diarra’s case, declared these specific provisions unlawful. The judgment is expected to prompt FIFA to thoroughly review and revise its transfer regulations.
FIFA’s chief legal and compliance officer, Emilio Garcia Silvero, acknowledged the need for adjustments, stating, “FIFA looks forward to developing its regulatory framework further, obviously taking into account views and input from all relevant and affected parties.” While Diarra’s legal team expressed their belief that the entire transfer system would undergo a transformation as a result of the EU ruling, FIFA maintained that the changes would be more targeted. Garcia Silvero clarified, “The international transfer system consists of many elements: for example, rules concerning registration periods; the transfer and registration of players; the application of sporting sanctions in certain cases; training compensations and solidarity mechanisms to reward training clubs; the international transfer of minors; the dispute resolution system to protect players and clubs alike in case of a breach of contract anywhere around the world; the protection of female players, coaches, national teams and much more.” He added, “All these vital elements are basically unaffected by the Diarra ruling.”
FIFA’s intention to collaborate with stakeholders underscores its commitment to creating a more balanced and equitable transfer system. The upcoming negotiations promise to be crucial in shaping the future of player movement in the sport, aiming to achieve a fair and sustainable system that benefits both players and clubs.
