FIFA confronts potential billion-dollar player compensation lawsuit
A significant legal battle is unfolding in the world of football, with a Dutch foundation called Justice for Players (JfP) launching a class action lawsuit against FIFA and five national football associations. The lawsuit, worth billions of dollars, alleges that FIFA's transfer rules have unlawfully restricted players' rights and caused them to lose earnings over their careers[1][2].
The lawsuit targets FIFA's regulations on contract termination and player transfers, which the European Court of Justice (CJEU) ruled last year violate EU competition law and freedom of movement[1]. JfP argues that these restrictive rules have resulted in an approximate 8% reduction in players' earnings across their careers, affecting potentially 100,000 players worldwide who have played professionally in the EU or UK since 2002, regardless of gender[1][2][3].
The foundation contends that because players’ negotiating power was diminished by these rules, they suffered financial damages. The defendants named in the lawsuit are FIFA and the football associations of the Netherlands, France, Germany, Belgium, and Denmark[1]. If successful, the financial consequences could be substantial for FIFA, national football associations, and clubs in top leagues, with the latter potentially facing immediate payment requirements due to the damages claim[2].
The case is currently in the Netherlands, where players residing there are automatically represented, while others can join by signing on. FIFA has been given a deadline to respond by early September 2025, and the case might not reach court until 2029 if no settlement is reached earlier[2].
The background includes the notable precedent of the Lassana Diarra case, where FIFA's transfer rules affected a contract dispute involving the player and Lokomotiv Moscow; the European Court of Justice’s ruling in this case paved the way for challenging FIFA’s regulations under EU law[1].
If the lawsuit is successful, it could lead to changes in FIFA’s transfer and contract termination rules to comply with EU law, financial liabilities for football governing bodies and clubs due to compensation claims, and potential impacts on the overall football economy, particularly in Europe’s major leagues[2].
The economists involved in the case have estimated that players would have earned about 8 percent more over their careers since 2002 had FIFA’s transfer regulations not been unlawfully restrictive[4]. FIFA has been contacted for comment, but has not yet responded[5].
Sources: [1][2][3][4][5]
- The English Football Association could be added to the legal case later on.
- The Court of Arbitration for Sport upheld FIFA's ruling against Diarra in 2018.
- The claim will be filed in the district court of Midden Nederland, with the Netherlands chosen as the jurisdiction.
- Diarra's lawyer, Jean-Louis Dupont, is advising Justice for Players.
- The Justice for Players foundation aims to file a class action against FIFA and the soccer associations of France, Germany, the Netherlands, Belgium, and Denmark.
- The CJEU judgment ruled that FIFA's regulations restricted free movement by establishing unlawful criteria for determining compensation, allowing the national federation of the former club to withhold a player's ITC, making the player's new club liable for the compensation to be paid to the former club, and allowing FIFA to impose disciplinary sanctions on the player and their new club.
- This legal battle could have significant implications not only for the world of football but also for the business world, as the financial consequences could be substantial for FIFA, national football associations, and clubs in top European leagues, potentially affecting millions of dollars in earned revenue by players over their careers.
- Analysts expect that, if successful, the outcome of this lawsuit could lead to changes in the financial landscape of sports, particularly in football, with FIFA revising their transfer and contract termination rules to comply with European Union law and possibly pay out compensation claims to financially damaged players and clubs.
- The economists involved in the analysis have estimated that footballers worldwide could have earned approximately 8% more over their careers since 2002 had FIFA's transfer regulations not been found unlawfully restrictive, impacting potential earnings for players across multiple European leagues, including the English Premier League, the Champions League, and other European football leagues.
