West Ham United vice-chairman Karen Brady insists the landmark ruling regarding the Lassana Diarra case ‘has got everybody worried’.
The European Court of Justice ruled on Friday some of FIFA’s rules on player transfers are contrary to European Union legislation relating to competition and freedom of movement.
The judgment came after former France international Diarra legally challenged FIFA rules following a dispute with a club dating to a decade ago.
He argued FIFA’s restrictions meant he was unable to find a new club after his contract with Russian club Lokomotiv Moscow was terminated in 2014.
FIFA’s rules state that if a player terminates his contract without ‘just cause’, the player and any club wishing to sign him are jointly liable for paying compensation to the previous club.
The European Court of Justice handed down a historic ruling regarding FIFA player transfer rules on Friday
The case was brought forward by Diarra over a decade-long dispute with a Russian club
West Ham United vice-chairman Karen Brady holds grave fears over what the ruling will mean
The ruling is seen as crucial because it could make it easier for players to terminate their contracts and join another team.
With players potentially now able to hold all the cards, Brady holds grave fears about what it could mean for the transfer system going forward.
‘The outcome of the Lassana Diarra case has got everybody worried,’ Brady wrote in a column for The Sun.
‘But one thing is for certain: if a player has the right to terminate their contracts because they want to go elsewhere, then so would their club.
‘And the result of that would be complete chaos and anarchy.’
Brady added: ‘If players can simply break their contracts and move around the world the entire system will collapse.’
The Hammers vice-chairman also protested what the ruling would mean for clubs lower down in the English football pyramid.
Several Premier League stars began their careers in the lower reaches of the English Football League (EFL), with some also breaking through at non-league clubs.
Diarra argued he couldn’t join a new club after Lokomotiv Moscow terminated his deal in 2014
Brady believes the ruling handed down will cause the entire transfer system to crash
The ECJ’s ruling is seen as crucial because it could make it easier for players to terminate their contracts
Those teams often insert sell-on clauses in case the player goes on to even bigger and better after securing a move.
Exeter City is one club who has benefitted from sell-on clauses as they were entitled to 15 per cent of Ollie Watkins’ £28million move from Brentford to Aston Villa in 2020.
The club also received a tidy windfall from Jay Stansfield’s record-breaking £10m move from Fulham to Birmingham City in the summer.
In her column, Brady used the example of non-league side Maidenhead United receiving £4m as part of West Ham’s £40m deal to sign Max Kilman from Wolves.
‘That’s life-changing money for a non-league club but if there are no fees anymore that won’t happen and the impact will be incredible.’
Brady voiced her concerns for how lower league and non-league clubs would be impacted
Ollie Watkins’ move from Brentford to Aston Villa generated substantial income for Exeter City
West Ham’s move for Max Kilman helped non-league Maidenhead United earn £4million
Diarra’s case was prompted when he signed a four-year contract with Lokomotiv Moscow in 2013 but the deal was terminated a year later after the former French international was unhappy with alleged pay cuts.
Lokomotiv Moscow applied to the FIFA dispute resolution chamber for compensation and the player countered seeking compensation for unpaid wages.
The Court of Arbitration for Sport ruled in favor of the Russian club and the player was ordered to pay 10.5 million euros ($11.2 million).
Diarra claimed his search for a new club was hampered by FIFA’s rules stipulating any new side would be jointly responsible with him for paying Lokomotiv.
The former Real Madrid player also argued that a potential deal with Belgian club Charleroi fell through because of the FIFA rules, and sued FIFA and the Belgian federation at a Belgian court for damages and loss of earnings of six million euros ($7 million).
With the lawsuit still going through Belgian courts, the case was referred to the ECJ for guidance.