Landmark ruling from EU's top court says some FIFA rules on transfers are contrary to the bloc's law

The European Union's top court said Friday that some FIFA rules on player transfers are contrary to European Union legislation relating to competition and freedom of movement, in a ruling that will likely lead to a shakeup of the soccer market's regulations and could change the sport's economy.

The European Court of Justice's ruling came after former France international Lassana Diarra legally challenged FIFA rules following a dispute with a club dating back to a decade ago. Diarra argued that FIFA's restrictions meant he was unable to find a new club after his contract with Russian club Lokomotiv Moscow was terminated in 2014.

FIFA's rules state that if a player terminates his contract without “just cause," the player and any club wishing to sign him are jointly liable for paying compensation to the previous club.

“Those rules hinder the free movement of players and competition between clubs,” the court said in a statement. “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.”