Sporting Justifications under EU Free Movement and Competition Law: The Case of the Football ‘Transfer System’

Governing bodies have significant autonomy in the organisation of professional sport in the EU, a situation now supported by Article 165 TFEU. However the post-Lisbon competence for sport does not grant any exemption for practices that infringe fundamental freedoms or competition law; such infringements can only be justified where they are a proportionate response to an inherent need in that sport.

The football ‘transfer system’ has been the subject of a series of EU law challenges, but continues to place obstacles in the way of the free movement of players between Member States and may restrict the ability of most clubs to compete for the elite players.

Court of Arbitration for Sport decisions in transfer dispute cases have entrenched this situation, and recent evidence casts doubt on both the ability of the authorities to justify the current system and the 2001 decision by the European Commission to sign it off as being an acceptable balance between the rights of the stakeholders.