FIFA Faces Billion-Pound Lawsuit Over Transfer Rules

Legal Case a ‘Seismic Confrontation’ Between Players and FIFA

FIFA is facing a multi-billion-pound legal challenge in what is being described as a “seismic confrontation” between players and the sport’s global governing body.

This week, Dutch organisation Justice for Players (JFP) launched a class action lawsuit targeting FIFA and five European national football associations (France, Germany, the Netherlands, Belgium, and Denmark). The case alleges that transfer regulations have unlawfully cost 100,000 players income since 2002.

Backed by last year’s European Court of Justice (CJEU) ruling, which declared certain FIFA transfer rules in violation of EU competition and labour laws, the lawsuit claims damages worth several billion pounds.

The Diarra Case: A Legal Turning Point

The lawsuit is founded on the October 2023 CJEU ruling in favour of former Chelsea and Arsenal midfielder Lassana Diarra. Diarra successfully argued that FIFA’s refusal to grant an International Transfer Certificate (ITC) during his 2015 transfer to Charleroi, following a contract breach with Lokomotiv Moscow, violated his freedom of movement and workers’ rights.

His legal team, led by Jean-Louis Dupont, also famously secured the 1995 Bosman ruling, which transformed global football by allowing players to leave clubs freely at the end of their contracts.

This new case could have similar consequences. JFP and its legal advisors suggest that players could, in the future, terminate contracts early without financial penalties, challenging FIFA’s system of joint liability and ITC control.

“Could Rewrite Global Transfer Laws”

“This class action could rewrite the rules governing player mobility across the global football industry,” said Udo Onwere, ex-Fulham player and now partner at law firm Bray and Krais.

“The outcome could usher in a new era of transfer regulations and governance.”

Experts believe this case could surpass even the Bosman ruling in impact, potentially ending FIFA’s ability to penalize clubs and players for contract breaches under the current structure.

Financial and Structural Implications for FIFA

The timing couldn’t be worse for FIFA. Having just expanded the Club World Cup and preparing for the 2026 World Cup, the financial risks of a wide-reaching compensation payout are enormous.

Daniel Gore, arbitration lawyer at Withers, commented:

“FIFA will struggle to defend against this in light of the CJEU’s findings. The anticipated floodgate of claims has opened.”

JFP claims that affected players have earned 8% less over their careers because of restrictive FIFA rules. With the average career span only around eight years, even marginal losses can be significant for professionals.

Player Unions Respond

The European division of FIFPro, the global players’ union, has said this action is a “logical follow-up” to the CJEU ruling and central to protecting players’ rights.

“We support fair compensation for affected players and governance reforms that prevent future exploitation,” it said in a statement.

FIFA Yet to Respond

FIFA has until early September 2025 to formally respond to the lawsuit. While it has previously updated its rules on an interim basis, the governing body acknowledged that the regulations could be vulnerable to further legal challenges.

So far, FIFA has not issued an official comment.