Diarra v FIFA: a game-changer for footballers’ employment rights?

It’s been suggested by some^[1] that the recent judgement of the Court of Justice of the European Union (CJEU) in Diarra v FIFA^[2] has the prospect of shifting the appetite and ability of players to contest what they see as restrictive obligations from a contractual and regulatory perspective against clubs and governing bodies in football.

The case involves FIFA’s Regulations on the Status and Transfer of Players (Transfer Regulations), which were dissected by the CJEU^[3].  Of the twenty nine articles that make up the Transfer Regulations, Article 17 – which deals with the consequences of terminating a contract abruptly, that is without ‘just cause’ – received particular scrutiny on the grounds of freedom of movement and anti‑competitiveness^[4], two key tenets of European law.  However, there are also material employment law implications posed by the outcome in this case. 

What do these actually mean in practice for clubs moving forward?  How can clubs and governing bodies ensure they don’t become subject to legal challenges from players? This article gets into the weeds (or more accurately, the immaculately pristine turf…) of the potential employment law repercussions of Diarra, and will examine:

• The facts
• Diarra’s arguments against FIFA’s Transfer Regulations
• The main employment law considerations
• How the judgment may impact player contracts
• Comment: a case that may reshape employment law in sports