The (r)evolution of sports law at the CJEU

After the groundbreaking Bosman judgment in 1995, which had a profound impact on the freedom of movement for football players, the CJEU is once again reshaping the football market. The basis for these recent decisions is the FIFA Regulations on the Status and Transfer of Players (RSTP). In case C-650/22, a European player contested the application of articles concerning the transfer of players who allegedly terminated their contract without just cause. According to those articles, both the player and their new club are jointly and severally liable for compensation and damages owed to the player's former club. Additionally, sporting sanctions, such as transfer bans, may be imposed on clubs found to have induced a player's breach of contract. Clubs are presumed to have induced the contract termination without just cause unless proven otherwise.

The CJUE ruled that these provisions violate the freedom of movement of workers principle and constitute a restriction of competition. However, the ruling does not prohibit sanctions for contract breaches in general, nor does it permit premature unilateral contract terminations without just cause. Therefore, it is unlikely that players will start terminating their contracts at their own discretion, as they would risk facing significant damages claims from their former clubs. This judgment could herald the next legal (r)evolution of the football transfer market, even if a smaller one.

author: Bernhard Schmidt