APPENDIX 1

THE BOSMAN CASE:

Sequence of events:

JUNE 1990: Jean-Marc Bosman gets into a dispute with his Belgian Club, FC Liege. They reduce his salary by 60%. Bosman wanted to transfer for the French club Dunkerque but his current club wanted a huge transfer fee, Bosman was dropped by FC Leige.

AUGUST 1990: Bosman sues for damages against FC Liege and the Belgian Football Association.

NOVERBER 1990: A Belgian court permits Bosman to transfer to the French Club free of charge. The Belgian Football Association appeals.

MAY 1991: The Court of Appeal decides that Bosman has the right to transfer.

JANUARY 1992: Bosman returns to Belgian and his application for unemployment benefit is rejected.

MARCH 1995: The appeal to UEFA (United European Football Association) by FC Liege and the Belgian Association fails.

JUNE 1995: Bosman claimed 1 million dollar damages at the EU- tribunal in Luxembourg.

NOVEMBER 1995: UEFA issues an open protest letter in favour of Bosman. FIFA (International Federation of Football Association) supports UEFA.

The Football world before Bosman.

The Bosman case changed the nature of player's transfers in the EU. Prior to the Bosman saga, football clubs had considerable employment control over their players. The players were registered with the clubs, when a player was moving or transferring from club to another it was the registration document that was exchanged between the clubs involved. In most transfers a fee was demanded from the club which held the registration document of the player concerned. The transfer fee, and also the inability of players to move freely between employers as and when the liked, marked them out as different from many other sort of employees.

Until 1960's players in England had to put in a transfer request if they wanted to move clubs. If the club refused to allow a player to move, the player would be tied to the club as long as his wages were maintained at least to the level of his previous contract.

This type of 'TRANSFER SYSTEM' meant that the Employment lives of players were CONTROLLED by the clubs. The knock on effect of this was that the player's mobility and wages was limited and Top players often had to spend most of their careers home clubs which often experienced little success.

However this was challenged and changed in the late 1960's with the help of a leading case of an English player 'George Eastham (Eastham Case). The facts of this case were that Eastham expressed a move to 'Newcastle United' from his club, 'Ards' in Northern Ireland. Despite his repeated requests for transfer, the club simply refused his request. Eastham eventually left the game after appealing to the football league. Newcastle effectively owned him one year later. Arsenal F.C and Newcastle F.C agreed a fee for Eastham, but the player took the case to the High Court, in order to test the 'retain and transfer system'.

The ruling of the High Court found that the 'retain and transfer system' was 'unreasonable restraint of trade'. If the clubs did not re-hire their player on a further contract, then if the players decide, should be able to leave for free. However, football clubs could still exercise the option to re-hire the player at the end of his contract, thus the 'freedom' was still very limited.

In the 1970's the 'Freedom of Contract' arrived. These meant players could exercise their right to leave clubs, at the end of their contracts. If the club offered the player new 'terms' that were at least as attractive as the old one's, then the selling club was entitled to a 'transfer fee'. If a fee could not be agreed by the clubs involved then a tribunal would decide a fee. Again this restricted the complete free movement of players.

Also the Nationality clause in the UEFA regulation stated that in all official matches (Championship national or European cup matches) a club may NOT field more than three players who are nationals of other member states.

This system lasted until the ground-breaking 'JEAN-MARC BOSMAN' case in 1990's.

THE JEAN-MARC BOSMAN FACTS:

Jean Bosman was a Belgian professional footballer who proved that it is not, only the most outstanding gifted players who make the headlines, especially in today's complex legal climate. Bosman made headlines that spelled bad news for football clubs, individual shareholders and the economy around the European Union. This had the opposite effect on individual players, especially those players who were nearing the end of their contract.

Mr Bosman played professional football for a Belgian football club, FC Liege, who were than a first division club in the Belgian league.

His dispute 'arose' out of a conflict in 1990 between him and his club, FC Liege. His contract expired on the 30th June 1990; his salary at the time was of BFR 75,000 per month. In April 1990, RC Liege offered Mr Bosman a new contract with a basic salary, which was reduced to BFR 30,000 per month. This salary was the minimum provided for in the statutes of the Belgian Football Association. Mr Bosman refused to sign the contract and subsequently was placed on the transfer list. The transfer fee was set at BFR 11,743,000. Since no club had expressed, an interest in offering Bosman a contract, Bosman himself contacted a French club US Dunkerque, which was a second division club. The club engaged Bosman by a contract on 30th June 1990 which had a basic salary of BFR 90,000.

US Dunkerque and RC Liege had already reached agreement on the terms of the players (temporary) transfer on the 27th June 1990. RC Liege was to transfer the player to US Dunkerque for one season in return for payment of BFR 1200,000 compensation, payable on receipt of the transfer certificate from URBSFA(1).

At the same time US Dunkerque was granted an irrevocable option for the player's permanent transfer for a further BFR 4800 000.

Both contracts --- the one between Mr Bosman and US Dunkerque and the one between RC Liege and US Dunkerque, were however subject to the condition that they would become void if the Belgian Association's transfer certificate did not reach the French Football Federation by 2nd August.

Because it had doubts as to US Dunkerque ability to pay, RC Liege failed to apply to URBSFA (1) to issue the certificate, subsequently both contracts lapsed. As early as 31st July RC Liege further more suspended Mr Bosman and thereby prevented him for the time from playing in the new season. Thus by not playing, Bosman had no income.

Mr Bosman took his case to the Belgian Court, arguing that the transfer rules and nationality clauses were contrary to 'Community Law' which prevented his transfer to a French Club, US Dunkerque. After serious of court proceedings the case was referred, by the Belgian Courts to the Court of Justice to rule on the question concerning the compatibility of the transfer rules and the nationality clauses with ARTICLE 39 (ex 48) OF THE TREATY OF ROME, which guarantees FREEDOM OF MOVEMENT OF WORKERS between Member States of the European Community, and with ARTICLES 81and 82 (ex 85 and ex 86 of the same Treaty.
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Bosman claimed that the defendant was in breach of contract and the 'Transfer System' and the 'Nationality Clause' violated 'Articles 39, 81 and 82 (ex48, 85 and 86) of the Treaty (2). I.E. it was ILLEGAL.

(1) Union Royale Belge Des Societes De Football Association (URBSFA).

(2) Article 39 States: " Freedom of movement shall involve the obligation of any discrimination based on nationality between workers of the Member States as regards employment, remuneration, and other working conditions:.

So when the UK acceded the Treaty of Rome in 1972 it was to incorporate Community Law ...

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