FIFA Introduces Temporary Regulatory Framework for Player Transfers

FIFA has introduced an interim regulatory framework for player transfers, effective January 1, 2025. This new framework addresses concerns raised by the European Union’s Court of Justice (CJEU) regarding the legality of FIFA’s existing transfer rules, particularly those limiting the free movement of players. The case that triggered this change involved former player Lassana Diarra, who in 2014 terminated his contract with Russian club Lokomotiv Moscow and sought to join Belgian club Charleroi. FIFA blocked his move by refusing to sign his International Transfer Certificate (ITC), citing joint liability for compensation, a decision later deemed unlawful by the CJEU.

The court ruled that FIFA’s regulations, which impose financial penalties and restrictions on player registrations, hindered the free movement of workers, violating EU law. As a result, the new framework revises FIFA’s compensation rules, focusing on transparency and fairness. It aims to simplify the process of determining compensation for contract breaches without specific calculation criteria, ensuring that the harmed party is restored to the position they would have been in had the breach not occurred.

The framework further offers lucidity on inducement for breach of contract, international transfer certificates, and proceedings before the Football Tribunal. The framework will apply immediately, including to ongoing cases before FIFA’s Football Tribunal, and will provide greater clarity for upcoming transfer periods.