World football governing body FIFA is facing a class-action lawsuit over its transfer rules on behalf of roughly 100,000 current and former professional footballers who have played in the European Union or the UK since 2002, according to a Dutch foundation bringing the claim.
The Amsterdam-based Justice for Players Foundation (JfP) is the first group to pursue legal action against FIFA seeking compensation, referencing a recent European Court of Justice case which determined that FIFA’s rules unlawfully restricted players’ ability to transfer clubs.
According to The Athletic, the litigation stems from FIFA’s decision to fine Lassana Diarra €10.5m and suspend him for 15 months for breaching his contract with Lokomotiv Moscow in 2014 following a salary dispute.
FIFA then blocked the French international from joining Belgian side Charleroi during the period he was suspended. Diarra challenged the ruling at the Court of Arbitration for Sport and sued FIFA in Belgian courts, eventually appealing to the ECJ, which upheld his claim.
The ECJ ruled that FIFA’s transfer rules were unlawful because they restricted football players’ ability to change clubs, thereby affecting player earnings, and found them to breach EU competition law and laws on the free movement of people.
Players from anywhere in the world who played for a European or UK club are eligible to join the action.
JfP suggests estimated damages could run into the billions, impacting all levels of professional football. Economic consultancy firm Compass Lexecon claims the rules mean affected players earn less, equating to an 8% loss of income over their careers.
JfP has hired class action specialist Finch Dispute Resolution to act alongside Belgian firm Dupont-Hissel, which had previously represented Diarra. The litigation is financed by third-party funder Deminor, which is reported to be taking a 25% share of any compensation.
The claim against FIFA and several national football associations, including the German, Belgian and Dutch FAs, will be filed at the District Court of Midden-Nederland under Dutch legislation, which allows a foundation to initiate such a claim legally.
Lucia Melcherts, a Dutch lawyer who is chair of JfP’s board, said the foundation was bringing the claim “to help achieve justice for footballers and fairness”, accusing FIFA of having “too much unilateral power”.
She added: “In any other profession, people are allowed to change jobs voluntarily. The same should be true in football.”
Another Dutch lawyer and JfP board member, Dolf Segaar, said the claim “will allow footballers to assert their rights as EU workers”, adding that FIFA had “willingly ignored the rule of EU law“, while the ECJ had established a “crystal clear” right for compensation.
Koen Rutten, a partner at Finch Dispute Resolution, added: “Not only are we seeking damages for footballers who have been disadvantaged by the rules that mainly benefit FIFA and the football associations, but… we are seeking changes to the FIFA rules so that professional players can finally have greater control over their careers.”
European players’ union FIFPro Europe said the litigation was a “practical response” to the ECJ in pursuing justice “in the most significant and long-lasting non-poaching agreement within the sports industry”.
Daniel Gore, a senior associate at Withers, commented: “FIFA will find it difficult to put forward a robust defence to these claims in the face of a clear decision that there was anti-competitive behaviour over several years.”
With class action claims commencing, Gore suggested FIFA’s finances would be damaged following the expanded Club World Cup this year and the World Cup in 2026.
He added: “Deminor’s involvement means both that the claims have already been stress tested by legal experts, but also that FIFA will not be able to deploy the usual financial muscle to string out a case indefinitely.”
FIFA was approached for comment.
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