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FIFA faces lawsuit over transfer regulations

by Warren S.
August 7, 2025
in Soccer
FIFA facing class action claim

Credits: Reuters

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A Dutch soccer players‘ group is preparing a “potentially billion-dollar” Europe-wide class action claim against FIFA and other associations, seeking compensation over alleged loss of income due to restrictive transfer rules, it said on Monday. The Dutch Foundation for Justice said world soccer governing body FIFA’s rules had affected approximately 100,000 players in European member states and the United Kingdom since 2002. FIFA does not have the best reputation in the global sporting arena following the bribery scandal a few years ago.

Dutch group due to lay ‘billion-dollar’ claim against FIFA

The foundation added that consultancy firm Compass Lexecon had estimated that damages could run into billions of euros, with the foundation’s board member Dolf Segaar telling Dutch news agency NOS that “it is a billion-dollar claim”. The Dutch Football Association (KNVB) is among the associations to be named in the suit.

“This case is being brought in the Netherlands under the Dutch Act on the Settlement of Mass Damages in Collective Action (WAMCA), which allows this legal action to be launched by JfP on behalf of a large group of professional footballers,” – Dolf Segaar

FIFA and the KNVB did not immediately respond to emailed requests for comment. The foundation added that a preliminary analysis from Compass Lexecon estimated that professional footballers collectively earned around 8% less over their careers than they would have due to FIFA’s regulations.

“All professional football players have lost a significant amount of earnings due to the unlawful FIFA Regulations. Justice for Players’ is bringing this claim to help achieve justice for footballers and fairness.” – Foundation chair Lucia Melcherts

Player transfers are at the center of the claims against FIFA

The foundation added that the case was launched following a ruling on French player Lassana Diarra, who was fined 10 million euros ($11.56 million) by FIFA for leaving Lokomotiv Moscow one year into a four-year deal. In October 2024, the Court of Justice of the European Union said some of FIFA’s rules on player transfers went against European Union laws and free movement principles in the case linked to former Chelsea, Arsenal, and Real Madrid player Diarra.

Following the ruling by the EU’s top court, FIFA in December adopted an interim framework concerning the Regulations on the Status and Transfer of Players. The interim regulatory framework affects the calculation of compensation payable if there is a breach of contract and the burden of proof in relation to both compensation payable and an inducement to breach a contract.

Players receive support from a reputable law firm

Justice for Players said it will be advised by law firm Dupont-Hissel, founded by Jean-Louis Dupont. Dupont is the same lawyer who took the landmark case of Belgian Jean-Marc Bosman, which in 1995 cleared the way for players in the European Union to move to other clubs at the end of contracts without a transfer fee being paid.

Dupont-Hissel also represented Diarra in his case against FIFA, with Dupont saying in 2024 that a judgment backing the player would be a milestone in modernizing football governance. He added that it would allow players’ unions and club associations to regulate their employment practices. The claim follows calls for FIFA to reconsider its approach by French players.

FIFA needs to restructure the organization to avoid these types of issues

Player transfers are always controversial. Every season, we are subjected to a litany of transfers in every league across the world. Those transfers are subject to heavy scrutiny from fans and insiders alike. Following the disastrous scandal a few years ago, FIFA will be looking to bring the case to a swift conclusion. Soccer players are worth inordinate amounts of money, and as such are treated like commodities by FIFA and the teams they play for. The result is that the transfer market has become a volatile place to do business for many clubs.

Coaches Database/Reuters

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