European court ruling could redefine football business

Is Olivier Bernard the new Jean-Marc Bosman? The so-called 'Bosman ruling' removed the cap on foreign players, widening the gap between rich and not so rich clubs in Europe. Now a French defender is again challenging the way football business is done.

Only fanatic Newcastle United fans will remember Olivier Bernard. The French defender (28) played about a hundred games for the English football club between 2002 and 2005, until injuries put an end to his career. However, if the European court of justice rules that Bernard does not have to pay compensation to his old club Olympique Lyonnais for breach of contract, his name could forever be attached to fundamental changes in European football.

On Tuesday, the highest court in the European Union held a hearing in the case between Bernard and the French club from Lyon. Nine years ago, Bernard was branded a so-called "espoir" player: a young promise. Under a national French rule in place at the time, Bernard was obligated to sign his first professional contract with Lyon at the end of his training period. Bernard ignored that rule and instead went to play for Newcastle, without the English side paying a dime to Lyon.

Protect investment

After his departure to the affluent Newcastle United, Olympique Lyon demanded 50,000 euros in compensation. Initially, a French judge assigned it 20,000 euros, but an appeals court overruled that, claiming that the French rule to allow compensation after a temporary contract was a violation of the freedom of movement. Lyon took the case to the French supreme court, which called upon the European court to define the extent of the principle.

Whatever the 13 European court judges decide - months from now - could have far-reaching implications for all of European professional football. The European court has to decide if professional football should be excempt from the principle of free movement of workers within the EU in order to protect its investment in the recruitment and training of young talent.

At Tuesday's hearing, the Bernard case was often referred to as Bosman II. In 1995, Jean-Marc Bosman, a Belgian player, went to the European court after his club, RC Liège, refused to let him go after his contract had expired. Bosman successfully challenged the common practice that clubs received compensation when a player left for another club, regardless of whether he had a contract or not. The European court of justice ruled that demanding a fee for players after the end of their contract was at odds with the European rules about the freedom of movement for workers.

Veiled transfer sum

After the Bosman ruling, the international football federation FIFA put in place special rules for the compensation of espoirs who leave for another club, claiming there is a general interest to encourage the recruitment and training of young professional players. Such compensation can run up to 580,000 euros. Some say that money is a veiled transfer sum at the end of a contract.

Like Bosman, Bernard is counting on the EU principle that guarantees freedom of movement for workers. His claim now puts the FIFA regulations drafted post-Bosman to the test by Europe's highest judicial body.

If the court rules against excempting football from that principle, it could completely unsettle the current compensation system for clubs who lose a young talent to an international transfer.

But even if the court rules in favour of the restriction, it could put the FIFA regulations back on the table. All depends on the wording the court will choose. If it sets criteria for the compensation for training, it is possible that current rules will not suffice.

Snatch away talented players

Many fear the rich clubs in dominant football nations will benefit, like they did the previous time the European court got involved with football transfers. The Bosman ruling has made it easier for the great English, Spanish, Italian and German clubs to snatch away talented players at an increasingly young age from clubs in places like France and the Netherlands, after they have been discovered and trained by clubs there. If the court rules against compensation for this training, these clubs could be left empty-handed.

The European Commission, the executive body of the EU, thinks current FIFA regulations are in line with European principles. But that is what 'Brussels' thought before the rules were challenged by Bosman in 1995.

When the European court ruled in that landmark case, it rewrote football legislation completely. Although it was not originally asked to judge the rule that limited the number of foreign players in a team's line up, the European court said that was against EU principles as well. Removing the cap on players from other EU member states has allowed rich clubs to put together teams of the best and brightest football stars from all over Europe, mixed with some from African and Latin American countries, rather than just those from the nation they compete in.