FIFA's new transfer rules will 'change football landscape' for Newcastle after unprecedented decision

The European Court of Justice has ruled that FIFA's transfer system is in breach of EU law, with the world players' union anticipating a 'profound' change in the landscape of football

A landmark court ruling could drastically alter the landscape of football's transfer system, with global players' union FIFPRO predicting a 'profound' shift. The European Court of Justice's decision comes in the wake of a case initiated by ex-Arsenal and Chelsea player Lassana Diarra.

The case pertains to Diarra's attempt to sign for Belgian team Charleroi after being accused of contract violation by his former club Lokomotiv Moscow in 2014, after the club had terminated the player's contract, but importantly kept hold of his registration. The French international took FIFA to court, alleging its regulations contravened EU law.

While FIFA initially sided with the Russian club, the ECJ has determined that certain rules are indeed in conflict with EU law. According to the court's judgement, FIFA's refusal to issue an International Transfer Certificate for Diarra's move to Charleroi shows its rules "impede the free movement of professional footballers wishing to develop their activity by going to work for a new club".

"The European Court of Justice has ruled that a central part of the FIFA transfer system, in place since 2001, constitutes a restriction of competition by object and a violation of the free movement of workers," FIFPRO stated. "The ECJ has just handed down a major ruling on the regulation of the labour market in football....which will change the landscape of professional football."

FIFA could not assure Charleroi that they wouldn't be held accountable for the £8.8m owed to Lokomotiv due to the alleged transfer violation. Diarra pursued legal action, arguing that his freedom of movement was affected, with the French international taking a year-long break from football after Charleroi withdrew from a deal, reports the Mirror.

Diarra's legal representation is Jean-Louis Dupont, who also represented Jean-Marc Bosman in another significant football case in 1995. The 'Bosman ruling', as it's now referred to, permits players to freely move between clubs once their contract has expired.

"[The latest ruling] paves the way for a modernisation of governance, in particular through the use of collective bargaining between employees and employers," stated Dupont's firm. The full impact will become more apparent once the complete judgement is released and any responses are made, with questions still lingering over the current transfer fee system, although FIFA have minimised concerns in an initial response.

"What changes would you make to the transfer system? Have your say in the comments section" "FIFA is satisfied that the legality of key principles of the transfer system have been reconfirmed in today's ruling," read a statement from the body. "The ruling only puts in question two paragraphs of two articles of the FIFA regulations on the status and transfer of players, which the national court is now invited to consider."

The case will now proceed to an appeal court in Mons, where the specifics of Diarra's case will be evaluated.

"This is an important ruling which could have potentially far-reaching ramifications for the rights of players within the current transfer system," said Maheta Molango, CEO of the Professional Footballers' Association (PFA). "More widely, it demonstrates again that football cannot behave like it does not have to work within the same employment laws that apply to any other industry."

"Legal action is nearly always the consequence of a failure to address issues constructively and collaboratively, but rulings such as this again show that it ultimately remains an effective way to defend the rights of players as employees. It demonstrates why the PFA and other player unions are also pursuing legal action in relation to the fixture calendar and player workload."

"As they consider the impact of this ruling, the football authorities need to be making an honest and open assessment of the suitability of their rules and how they sit alongside employment laws. They then need to start making genuine and proactive efforts to work with players and their unions."