June 11 – Earlier this week FIFA announced that it had settled the Lassana Diarra transfer case over claims for compensation. Yesterday FIFA and football’s key stakeholders approved a new regulatory framework that they say will bring stability and certainty to the global transfer system

In 2024, Diarra won a landmark case at the Court of Justice for the European for the European Union (CJEU) against FIFA and the Belgian FA in which he claimed restrictive labour practices had caused him €6 million in loss of earnings. 

The ruling said some of the rules on player transfers “are of restrictive nature and may only be justified in specific circumstances.” It forced FIFA to amend transfer regulations to comply with EU competition law but the ruling still threatened to upend the transfer market raising significant questions about its future as clubs could find themselves paying money for players on the basis of long term contracts, only to find those contracts could easily be broken if a player wanted to leave the club.

FIFA said that the new Regulations on the Status and Transfer of Players (RSTP) negotiated with players’ union FIFPRO, the European Football Clubs (EFC) association, the World Leagues Association, UEFA and Conmebol, ensured an “appropriate balance between the rights of players and clubs, in full compliance with the principles established by the CJEU… The new rules constitute an objective, transparent, non‑discriminatory and proportionate framework for the global transfer system and all its participants.”

FIFA said the new rules “appropriately balance the interests of players and clubs”.

Most crucially it brings stability to a transfer system that all the stakeholders believe is critical for sustainable development of clubs and the football pyramid in Europe and worldwide.

EFC Chairman, Nasser Al-Khelaïfi, said: “This is a very positive development for EFC, our members and the wider football pyramid including clubs and players all around the world. It brings much-needed stability to the system, and we are grateful to our stakeholder partners – UEFA, FIFA, FIFPRO and the leagues – for nearly two years of constructive collaboration that has made this outcome possible. The transfer system is fundamental to the long-term sporting and financial health of the club game. These new regulations provide the clarity and certainty needed for clubs, players and governing bodies to move forward and thrive together.”

The EFC outlined the key provisions in the new regulations as including:

• Formal collaboration between clubs and players: For the first time, FIFPRO has signed up to the transfer system, confirming that the new framework is the result of collective bargaining with FIFA, EFC, UEFA and other stakeholders.
• Extended protected period for young players: The protected period during which contractual stability is enforced will be extended to four years for contracts signed by players up to the age of 23.
• Five-year professional contracts for minor club trained players: Clubs will now be able to offer five-year contracts to club-trained players at the start of their professional careers, subject to national law and CBAs and within a pre-defined regulatory framework.
• Targeted benefits for players earning less than €150,000 per year: Players earning less than €150,000 gross per year will, subject to national law, domestic football regulations or CBAs, be eligible to receive up to 5% of a fixed transfer fee in cross-border transfers.
• Greater clarity on breach of contract: In the event of a breach of contract, damages payable must reflect the actual damages suffered by a club and a player, with a minimum base-line compensation guaranteed for both clubs and players equal to the remaining value of the player’s contract.

The new rules will come into force January 1, 2027.

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