Ex-Chelsea & Real Madrid midfielder Lassana Diarra wins court case against FIFA in ruling that challenges player contract rules

Diarra challenged FIFA's longstanding player contract rules in the Court of Justice of the European Union (CJEU) which prevented footballers from signing with new clubs if they terminated their contracts prematurely. These FIFA regulations, part of the organisation’s Regulations on the Status and Transfer of Players (RSTP), have now been deemed unlawful by Europe’s highest court as they potentially violate European Union law, particularly the ones governing freedom of movement and competition within the EU.

The case originated from a dispute in Belgium involving Diarra, who was given a 15-month suspension and was ordered to pay a hefty fine of €10 million (£8m) after his controversial departure from Lokomotiv Moscow in 2014. Lokomotiv had terminated Diarra's contract, accusing him of forcing their hand by refusing to play after a disagreement over a proposed salary reduction. After the termination, FIFA's RSTP regulations imposed penalties on Diarra, which he contested in court.

“The rules in question are such as to impede the free movement of professional footballers wishing to develop their activity by going to work for a new club,” said the Luxembourg-based CJEU. “Those rules impose considerable legal risks, unforeseeable and potentially very high financial risks as well as major sporting risks on those players and clubs wishing to employ them which, taken together, are such as to impede international transfers of those players.”

Diarra’s lawyers Jean-Louis Dupont and Martin Hissel released a statement after the ruling which read: "All professional players have been affected by these illegal rules (in force since 2001!) and can therefore now seek compensation for their losses. We are convinced that this ‘price to pay’ for violating EU law will – at last – force FIFA to submit to the EU rule of law and speed up the modernisation of governance.”

The decision may prompt widespread changes to FIFA's policies regarding player transfers and contracts. FifPro, which supported Diarra throughout the legal battle, believes the ruling will have far-reaching effects on how professional footballers move between clubs. “This ruling will change the landscape of professional football,” FifPro said in a statement.

Any changes to the current system will likely take time to implement. However, FIFA has refrained from "commenting further" as they will now "analyse the decision in coordination with other stakeholders."