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Transfer fees could be abolished if Fifpro win legal action against FIFA

Football’s transfer system as we know it could be turned upside down as Fifpro, the union that represents footballers around the world, seek to win a landmark legal case against FIFA based on their belief the current system infringes European competition law.

After being embroiled in negotiations with both FIFA and UEFA to change the structure of the system to better support players, it seems Fifpro’s patience with the governing bodies has well and truly come to a head – now a complaint is to be filed with in Brussels with the European Commission.

Sounds like the usual corporate faff granted, however the implications of the court case could mean the abolishment of Transfer fee’s altogether as well as the current loan system.

Fifpro’s general secretary, Theo van Seggelen, commented on the case;

“Whatever happens, it is a historical moment not only for Fifpro but for professional football, We were responsible for Bosman, we were responsible for the declaration of objectives in 2001. We thought we had a good position then but we were tackled from behind.

“We’ve tried to solve this problem internally with Fifa and Uefa but I am 100% convinced that they have left us with no choice. I have been used to negotiating my whole career, with Fifpro and the Dutch union. But it has come to an end.”

New research from economist Stefan Szymanski is to be used to argue any belief that the current system benefits smaller clubs.

“The transfer system as it currently operates is intended to achieve a number of pro-competitive benefits in football markets by placing restraints on football players,”

said Szymanski.

“These restraints significantly impact the economic and social wellbeing of the players both in theory and in practice.

“Even if it were possible to justify these restraints because of the wider benefit to football, there is little evidence that these wider benefits have materialised. But in reality, it remains the case that there are better alternatives to achieving the stated policy goals, as observed by Carl Otto Lenz Advocate General at the European Court of Justice in the Bosman case 20 years ago.”

“As it currently operates, the transfer system sustains the dominance of the elite clubs by ensuring that they are the only ones with the financial muscle to afford the transfer fees payable for the very best players. Thus, as it currently operates, the transfers system is not only unfair to players, it also promotes the opposite of what was intended.”

Read the full story over at the Guardian .

(Via the Guardian)