FIFA ruling alters European soccer transfer market, which could affect NWSL

The GIST: This week, the European Union’s (EU) top court ruled that some of FIFA’s rules around player transfer fees violate EU law following a successful suit by former Chelsea and Real Madrid men’s player Lassana Diarra. The decision is expected to have far-reaching implications, but one overlooked aspect is its potential effect on the new and improved NWSL market. Got new rules.

How it worked: Until now, if a player’s contract ended “without just cause,” their next club would often be saddled with a costly fee. After Diarra was terminated from a Russian club following a dispute in 2014, he tried to join a Belgian team, but his new club had to reimburse his former team for developing him. This caused Diarra to sit out the 2014-15 season, which prompted this lawsuit.

The ruling: With FIFA’s rules no longer at play in the EU, players can essentially breach their contract whenever they want, no just cause needed. This means players will have unprecedented power over where and when they sign, and there’s nothing keeping them tethered to clubs long-term unless new rules come into play.

• Not only does this ruling threaten the value of player contracts — clubs may be unwilling to pay millions for someone who could leave whenever — but it also affects the transfer fee economy. These issues are no longer present in American sports, where players’ unions negotiate contract terms with leagues and protect players from cases like Diarra’s.

The women’s soccer impact: The NWSL has made inroads with its latest CBA by abolishing the draft, putting it on par with draftless Euro leagues. This was explicitly done in hopes of making it an attractive destination for North American talent and international stars. The CBA also secures revenue sharing, protection against surprise trades, and guaranteed contracts.

• Add in the NWSL’s record valuations and media rights deal, and the league is quickly becoming a top spot for international athletes. However, with European players gaining more autonomy, the continent’s more established market might have just become a lot more attractive (and potentially lucrative) than before, which could staunch the flow of European talent to North America.

Looking forward: While the ruling threatens to upend the European transfer economy, the focus on player’s rights is more in line with the NWSL’s recent labor wins. It remains to be seen how this will impact the European and American markets, and if European clubs will continue to pay high premiums for less restrictive contracts. Watch this space.