The CJEU Rules in the Diarra Case – FIFA’s transfer Rules Restrict Free Movement and Competition

From the standpoint of competition law, sport differs from other industries in some key ways. It’s often driven by ideals like sporting merit and fair play rather than just profit. Additionally, sport relies on collaboration—leagues, clubs, and associations must coordinate on scheduling and other logistics.

However, sports also involve powerful commercial entities, such as leagues and clubs, which can hold significant influence over players, fans, and other stakeholders. This creates competition law challenges similar to those in other industries. The recent EU Court of Justice judgment in the Diarra case (Case C-650/22 FIFA v BZ) adds another layer to the ongoing effort to balance competition regulation in sports governance.

The judgment is currently available in French and Polish, with an English summary available here.

Background:

The case centers on former footballer Lassana Diarra, who disputed the rules governing contracts between players and clubs. After joining Lokomotiv Moscow, Diarra sought to leave following a salary cut. The club terminated his contract and requested compensation from FIFA, which ruled in favor of the club and ordered Diarra to pay €20 million (later reduced to €10.5 million) for terminating his contract without just cause…

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