Class-action against FIFA! This can’t be good…….

FIFA is facing a multibillion-pound class action lawsuit from about 100,000 current and former players, led by the Justice for Players foundation. Justice for Players (JfP) is led by a board that includes two Dutch legal experts, Lucia Melcherts and Dolf Segaar and has the advice of Jean-Louis Dupont, the lawyer who represented Jean-Marc Bosman in the landmark 1995 case that allowed players out of contract to move freely without transfer fees.

The costs associated with the class action will be covered by Deminor, a global firm that finances legal disputes in exchange for a portion of any compensation awarded. Current and former players are being urged to contact JfP through its website, justiceforplayers.com if they feel that they should form part of the litigation.

This lawsuit follows the European Court of Justice ruling in 2023 that FIFA's transfer rules violate EU competition law and the right to free movement of workers (scroll down to see the Lassana Diarra case explained in full!)

Some argue that the recent ruling has cast doubt over the entire transfer system, potentially exposing FIFA to billions in compensation claims. However, others believe the impact will be more limited, as the judgment specifically targeted just two aspects of the rules: how compensation is determined when a player unilaterally ends their contract, and the notion that the new club shares liability for the breach.

The case is being filed in the Netherlands, and the claim is based on lost income due to FIFA’s restrictive transfer regulations since 2002. An economic analysis cited by the claim suggests players would have earned 8% more over their careers without FIFA’s rules. The lawsuit also targets the football associations of France, Germany, the Netherlands, Belgium, and Denmark, with the English FA potentially being added later.

FIFA has updated its transfer rules since the ruling, but these changes haven't been accepted by the international players’ union, FIFPro. FIFA and the relevant associations have until September to respond.