FIFA & five Football Associations face class action lawsuit worth billions following ex-Real Madrid & Chelsea star Lassana Diarra's landmark victory in court

A Dutch foundation, Justice for Players, is preparing a mass legal claim against FIFA and five national football associations, seeking billions of euros in compensation for an estimated 100,000 professional footballers, NOS reports. The foundation announced its intention to file the lawsuit with the Midden-Nederland District Court, asserting that FIFA's transfer regulations have unfairly restricted players' ability to earn income since 2002. This collective action is made possible by a landmark court ruling in favour of former Real Madrid player Diarra, which deemed FIFA's rules unlawful. Alongside FIFA, the Dutch, German, French, Belgian and Danish football associations are named in the lawsuit, in addition 31 associations have been notified of the case.

This legal battle has been brewing for years, but the tipping point was the European Court of Justice (CJEU) ruling on the case of Diarra. The French midfielder had a long-running dispute with Lokomotiv Moscow, which led to a hefty €10.5 million (£9m/$12m) fine and him being prevented from joining a new club after he terminated his contract. Diarra challenged FIFA's Regulations on the Status and Transfer of Players (RSTP), arguing they unlawfully restricted the "free movement of workers" within the European Union. The court agreed, stating that the rules created "unforeseeable and potentially very high financial risks" for players, giving them little power to negotiate or leave clubs under difficult circumstances.

While the 1995 Bosman ruling freed players to move on a free transfer at the end of their contracts, the Diarra case targets a different aspect of player rights: the ability to terminate a contract prematurely. The ruling provides a crucial legal foundation for the new class action, suggesting that FIFA's rules went too far in protecting clubs at the expense of player freedom. Player unions like FIFPro, which supported Diarra, have long argued that these rules stifled player mobility and suppressed wages, particularly for those in the lower divisions.

Justice for Players is supported by Deminor, one of Europe's largest litigation funders, which will cover all legal costs. This crucial backing means affected players can register for the lawsuit at no personal expense. The claim estimates that the restrictive FIFA rules caused players to earn approximately eight per cent less over the course of their careers. The lawsuit targets not only FIFA but also the national associations that are responsible for enforcing the regulations, holding them "jointly liable" for the damages. This is a deliberate strategy to ensure accountability and a financial payout, as if one party is unable to pay, the others will have to. The case is being led by Dutch law firm Finch Dispute Resolution, with advisory support from Jean-Louis Dupont, the lawyer who was also instrumental in the landmark Bosman ruling.

The class action lawsuit against FIFA and five national football associations poses a serious threat to the existing transfer system, demanding far-reaching reform beyond FIFA’s minor post-Diarra changes - deemed inadequate by FIFPro. With potential for massive financial penalties and a legal mandate to align the RSTP with European labour laws, the case could reshape how contracts and player movement are governed globally. National bodies, now facing joint liability, may be forced to reassess their enforcement roles, making way for a new era of player empowerment, greater freedom, and fairer compensation across all levels of the game.