The Globe At Their Feet: FIFA's New Employment Rules – II

Abstract

In December 1998 FIFA faced a crisis. The European Commission objected to football's transfer system (payment of fees for players who change clubs during the life of their contract), seeking its abolition. Three years earlier, in Bosman, the European Court of Justice found against the compensation system (payment of fees for players who change clubs after the expiry of their contract). FIFA, together with UEFA, lobbied the European Commission and leading politicians, to turn the Commission away from this position. FIFA and UEFA were not only successful in securing the maintenance of the transfer system, but also achieved resurrection of compensation fees for players less than 23. This study provides an account of the major machinations of these events and a critical commentary on the rules developed. The study maintains that the rules are inconsistent with the European Treaty, confused and contradictory and will be overly bureaucratic. FIFA's objects could be more easily achieved by the introduction of a simple administrative rule; placing an upper limit on the size of playing squads of clubs in leading, or top-flight, divisions. Part I, which appeared in the Spring 2004 issue of this journal, examined the economics of professional team sports, the Bosman case and the interactions of various parties in constructing a new set of rules. Part II describes the new rules and provides a critical commentary.