In 1990, Jean-Marc Bosman (Also known as the Bosman Ruling) who was a Belgian footballer playing for RFC Liege in the Belgian First Division at the time, had a desire to switch to French team Dunkerque as his contract was about to expire in 6 months (Tom Fordyce, 2005). However, Liege put a transfer fee on Jean-Marc’s transfer, which effectively gave Dunkerque no chance of signing the Belgian. This meant that Jean-Marc was forced to stay at the club and ultimately had his wages reduced after being demoted from a first team player to a reserve player (Tom Fordyce, 2005). In 1995, Jean-Marc made a decision in regards to the freedom of movement for workers and freedom of association that had a direct effect on the EC Treaty (Tom Fordyce, 2005).
Following the incident Jean-Marc filed a lawsuit against RFC Liege under article 39 in the EC Treaty for restraint of trade challenging the transfer system. Article 39 states that:
1. Freedom of movement for workers shall be secured within the Community.
2. Such freedom of movement shall entail the abolition of any discrimination based on nationality between workers of the Member States as regards employment, remuneration and other conditions of work and employment.
3. It shall entail the right, subject to limitations justified on grounds of public policy, public security or public health:
(a) to accept offers of employment actually made;
(b) to move freely within the territory of Member States for this purpose;
(c) to stay in a Member State for the purpose of employment in accordance with the provisions governing the employment of nationals of that State laid down by law, regulation or administrative action;
(d) to remain in the territory of a Member State after having been employed in that State, subject to conditions which shall be embodied in implementing regulations to be drawn up by the Commission.
4. The provisions of this article shall not apply to employment in the public service (European Commission, 2013).
The court was in favour of Jean-Marc as he proposed that the transfer system should be changed allowing players who are out of contract to move freely without having the club to pay a transfer fee. This now meant that it was illegal to charge a transfer fee for players moving to another club who were out of contract and this also changed the ‘quota system’, which now allows clubs to field as many foreign players as they choose where as previously were restricted to only a few. This is now known as the Bosman Ruling (Leo Cendrowicz, 2011).
The system prior to the Bosman Ruling aimed at maintaining the competitive and financial balance between clubs and prevented the
