FIFA announces new player transfer regulations following Diarra settlement

World football’s governing body recently approved significant reforms which aim to overhaul of the global football transfer system. They will come into force in time for the winter transfer window opening on 1 January 2027

The new Regulations on the Status and Transfer of Players (RSTP) are designed to bring contractual stability, fairness and transparency to the transfer process, whilst at the same time balancing the rights of clubs and players.

FIFA transfer policy, and those of domestic regulatory bodies, had come under increasing scrutiny as a result of former France midfielder Lassana Diarra agreeing a settlement with his country’s football association and world governing body FIFA over a damages claim following a cancelled transfer in 2014.

Gabrielle Armstrong, a sports disputes expert with Pinsent Masons, said: “The Diarra case demonstrated the flaws in the transfer system and although FIFA introduced interim measures to cover compensation and contract disputes as a result of the CJEU ruling, they did not go far enough.

“These further developments, particularly after engaging with key stakeholders, should be welcomed as a positive step in achieving stability and fairness in the transfer system.”

The RSTP were developed following collaboration between FIFA, player representatives, clubs and domestic leagues, and include new provisions such as a methodology to calculate compensation for breach of contract, extended contracts for players under 18, and player participation in transfer fees.

Diarra’s claim had been at the spearhead of a move by campaign group Justice for Players claiming that as many as 100,000 other players had been restricted in their career movements by previous transfer rules after a CJEU ruling.

The former Paris Saint-Germain and France international midfielder had launched the compensation case after the CJEU found against FIFA in 2024 that transfer certification and joint cost restrictions infringed EU freedom of movement and competition law.

Diarra had previously been frozen out at Russian side Lokomotiv Moscow in 2014, less than a year after joining the club – with the club cancelling his contract and seeking compensation when the player refused to train or take a salary cut.

He was also denied a move to Belgian side Charleroi after FIFA refused to exempt Charleroi from any shared liability for the costs and did not issue Diarra with the certificate needed to complete the move.

A subsequent ruling by the Court of Arbitration for Sport saw Diarra banned from playing for a year and ordered to pay Lokomotiv €10 million in compensation, meaning he missed the entire 2014-15 season before eventually signing for Marseille and launching the legal action against FIFA. FIFA was forced to make an interim change to player transfer rules as a result.