How Bosman changed face of football

Mar 10 2009 by Neil Warwick, The Journal

CONTRARY to popular belief, the most famous Free Movement of Workers case in the European Union is the “Bosman” case.

Many people believe the case was about competition law within the football leagues. It was not. It was about Bosman’s right to be employed in any country within the EU.

With Free Movement of Workers very topical at the minute, it is worth having a look at the far-reaching effects of the Bosman case.

In 1998 Bosman was a professional footballer of Belgian nationality and was employed by RC Liege. At the end of his contract Bosman contracted with US Dunkerque, a French second division club. RC Liege refused to let Bosman go to Dunkerque without the payment of a transfer fee. Ultimately Bosman’s transfer to Dunkerque failed, leading Bosman to initiate a challenge of the transfer rules.

In 1991 Uefa adopted the “three plus two” rule permitting each national association to limit the number of foreign players a club could field in any first division match in the national championships.

Bosman claimed that such clauses could impede his career. In a preliminary ruling the European Court of Justice held that the system of transfer fees was incompatible with Article 39 of the EC Treaty. The nationality clauses were also held to be incompatible with Article 39.

The Free Movement of Workers entails the abolition of any discrimination based on nationality between workers of the Member States as regards employment, remuneration and conditions of work and employment.

By challenging the rules, and securing the possibility of playing football overseas the entire transfer system had to be overturned.

In 2001 a compromise to the transfer fee system was reached between the football authorities and the Commission which resulted in the regulations on the status and transfer of players. These regulations were ratified by FIFA’s executive committee in July 2001. These regulations now only allow training compensation (the transfer fee) to be paid to clubs for players under 23.

Neil Warwick, partner at law firm Dickinson Dees: neil.warwick@dickinson-dees.com  or on (0191) 279-9375.