The end of the transfer system (?)

Abstract

The player transfer system of professional football is an exceptional mechanism for controlling worker mobility. Under FIFA's Regulations on the Status and Transfer of Players (RSTP), an employee under contract may not seek employment at another club, and another club may not approach the player while under contract without the permission of the current club. Failure to observe these rules can result in large financial penalties and sporting sanctions. On April 30, the Advocate General of the European Court of Justice issued an opinion that "the FIFA rules governing contractual relations between players and clubs may prove to be contrary to the European rules on competition and freedom of movement of persons." If this opinion is adopted by the court, the current system will have to be replaced, leading to significant changes in the way that player contracts are governed. This paper explores the rationale for the transfer system and the implications of its abolition.

Keywords: football, soccer, transfer system, player labor market, sports law, Diarra