FIFA is facing a multimillion-dollar collective compensation lawsuit from a group of former players, following a landmark ruling by the Court of Justice of the European Union (CJEU) that declared the governing body’s transfer rules illegal. The Justice for Players foundation, based in the Netherlands and including former England assistant technical director Franco Baldini on its board, announced it will represent around 100,000 footballers who allegedly lost income due to these restrictions since 2002.

The legal action will also target the football federations of France, Germany, the Netherlands, Belgium, and Denmark, and will be filed in the district court of Midden Nederland. The choice of this jurisdiction stems from Dutch legislation allowing collective actions on behalf of workers in the EU and the UK. The named organizations have until September to respond to the notice. The English Football Association, although not initially listed, could be added to the process.

A case that could reshape the foundations of the transfer market

The lawsuit stems from the CJEU’s ruling in October 2023 in favor of former footballer Lassana Diarra, whom FIFA barred from signing with Belgian club Charleroi in 2016 after accusing him of breaching his contract with Lokomotiv Moscow. Diarra was fined €10.5 million and suspended for 15 months, but the European court found that FIFA had violated the right to freedom of movement for workers and EU competition law. This decision opened the door for thousands of players to seek compensation for similar situations.

The Justice for Players foundation, advised by lawyer Jean-Louis Dupont, known for winning the Bosman case in 1995, argues that footballers would have earned on average 8% more over their careers if the transfer regulations hadn’t been restrictive. The claim is based on an independent analysis by Compass Lexecon. Although FIFA has since reformed its regulations, the new system has yet to be endorsed by FIFPRO, the international players’ union, keeping the debate alive over labor rights in professional football.