Manchester United and Man City braced for major transfer changes as FIFA update emerges

Some of FIFA's rules on the movement of players between clubs are contrary to European Union law, the European Court of Justice (ECJ) has ruled.

The decision follows a referral from a Belgian appeal court in the case of former Arsenal, Chelsea and Portsmouth midfielder Lassana Diarra, who challenged some of FIFA's rules after the termination of his contract with Russian club Lokomotiv Moscow in 2014. He argued some of the rules imposed by football's global governing body restricted his freedom of movement and breached competition law, and sued FIFA for damages.

His lawyers contested a rule which makes a club wishing to sign a player jointly liable for compensation to a player's old club, and at risk of sporting sanctions, in cases where the player's previous contract was terminated without just cause, on the grounds that it deterred Belgian side Charleroi from signing him.

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They also challenged a rule which allows the national association of a player's former club to withhold an international transfer certificate (ITC) where there was a dispute, which they said also hindered the move. A press release from the ECJ issued on Friday morning said the court had found the contested rules were contrary to EU law.

"The rules in question are such as to impede the free movement of professional footballers wishing to develop their activity by going to work for a new club," the court release stated.

The release went on to say the court found that while some restrictions on movement may be justified to regulate competition