Webster ruling
Encyclopedia
The Webster ruling is a test case
in association football law
involving Andy Webster, a defender
formerly with Heart of Midlothian
football club in Edinburgh
, Scotland
. In September 2006 he became the first player to exploit the updated transfer regulations
of FIFA
, football's governing body
, which stipulated that players are able to unilaterally walk away from a contract after a fixed period, regardless of the duration of the contract itself. Although the long-term effects of the decision remain unclear, it has been compared to the landmark Bosman ruling
of 1995 in its potential significance.
, who in 1998 opined that FIFA
's then current football transfer system
served as an obstruction to players' freedom of movement
compared to workers in other industries. FIFA, and its European counterpart UEFA
, campaigned for a special exemption for football, but after the Commission threatened to abolish the system, the new regulations were put in place by September 2001. Because of the complexity and potential legal ramifications for players, it was five years before Webster's test case emerged.
for a reported £
75,000,
plus a "sell-on clause" which entitled Arbroath to 17.5 percent of any future sum received by Hearts for him. He played regularly for the next five years, and made 22 appearances for the Scotland national football team
. In July 2005, Glasgow
side Rangers F.C.
were credited with an interest in Webster, and the player requested permission to speak to them. This was refused, and Hearts told the player he would be part of their squad that season. However, in 2006 he became involved in a dispute with club owner Vladimir Romanov
after refusing to extend his contract, and was subsequently omitted from the squad for the remainder of the 2005–06 season. Webster, who still had a year of his existing contract remaining, then signed for English
Premiership club Wigan Athletic
in August that year. The transfer was a protracted affair; it took several months before contracts were approved by FIFA, and the governing body took further time to ascertain if Webster's former club were due any compensation. The matter was further complicated by Hearts' initial refusal to release the player from their books as they sought to challenge the decision.
Despite the efforts made to sign him, Wigan did not provide Webster with a regular first team place, and in January 2007 he returned to Scotland
after Rangers signed him on loan for the remainder of the 2006–07 season. Despite persistent injuries which prevented him playing, Rangers manager Walter Smith
extended his loan contract to 2008, although a permanent move was not organized until June 2008 as litigation over the Hearts–Wigan transfer continued.
FIFA's transfer arbitration tribunal, the Dispute Resolution Chamber, met on 4 April 2007 and ruled that Hearts were due £625,000, based on Webster's future wages, his earning potential, and the legal costs. They also found Webster guilty of breaking his contract "without just cause", although only on a technicality; he and his agent
were late informing the club of his intention to leave, because of confusion over the final match of the season (Hearts had reached the 2006 Scottish Cup Final
, but the time limit was calculated from the club's last league game, four days prior to the Cup match). For this he was suspended for the first two weeks of the 2007–08 season.
Hearts were quick to lodge an appeal against the ruling, disputing the figure which they said had not been unambiguously calculated. Webster had also indicated a desire to appeal, believing the fine against him was excessive. On 30 January 2008 the Court of Arbitration for Sport
, the highest arbitration authority in sport, met in Lausanne
and clarified the original ruling. They also reduced the compensation due payable by Webster to £150,000.
successfully challenged
the restrictions on freedom of movement for workers
for footballers in 1995. There is also speculation that the days of record-breaking transfer fees may be at an end. High profile players like Frank Lampard
, Cristiano Ronaldo
, Michael Owen
, Steven Gerrard
and Wayne Rooney
have all been cited as examples of players who could either leave their club for a relatively small amount, or increase their contract bargaining power as a result. Several other players have taken advantage of Article 17, including Tony Sylva
and Jonás Gutiérrez
.
FIFA were highly critical of the ruling; president Sepp Blatter
said "the verdict in favor of the player will have far-reaching and damaging effects on the game as a whole. [It] is... a Pyrrhic victory for those players and their agents who toy with the idea of rescinding contracts before they have been fulfilled." Football clubs were also hostile; A Hearts spokesman described it as a "dark day for football clubs", while Celtic F.C.
, one of Hearts' and Rangers' rivals, stated bluntly that they would sue any player who broke his contract, believing that a court of law would support them regardless of any prior arbitration decision. The European Club Association
has vocally criticised the ruling on several occasions, most notably after CAS decided Real Zaragoza
had to compensate FC Shakhtar Donetsk
for Brazilian midfielder Matuzalém's controversial transfer in May 2009.
Conversely, players' organizations were highly supportive of CAS's decision. Tony Higgins
, a Scottish representative of international footballers' union FIFPro
, said "Article 17 gives footballers the sort of employee rights that anyone else would expect in the workplace", while Fraser Wishart
, the general secretary of the Scottish players' union who had supported Webster's case, described it as "a new groundbreaking decision enabling players to enjoy greater freedom of employment."
Test case (law)
In case law, a test case is a legal action whose purpose is to set a precedent. An example of a test case might be a legal entity who files a lawsuit in order to see if the court considers a certain law or a certain legal precedent applicable in specific circumstances...
in association football law
Sports law
Sports law is an umbrella term used to describe the legal issues at work in the world of both amateur and professional sports. Sports law overlaps substantially with labor law, contract law, competition or antitrust law, and tort law. Issues like defamation and privacy rights are also an integral...
involving Andy Webster, a defender
Defender (association football)
Within the sport of association football, a defender is an outfield player whose primary role is to prevent the opposition from attacking....
formerly with Heart of Midlothian
Heart of Midlothian F.C.
Heart of Midlothian Football Club are a Scottish professional football club based in Gorgie, in the west of Edinburgh. They currently play in the Scottish Premier League and are one of the two principal clubs in the city, the other being Hibernian...
football club in Edinburgh
Edinburgh
Edinburgh is the capital city of Scotland, the second largest city in Scotland, and the eighth most populous in the United Kingdom. The City of Edinburgh Council governs one of Scotland's 32 local government council areas. The council area includes urban Edinburgh and a rural area...
, Scotland
Scotland
Scotland is a country that is part of the United Kingdom. Occupying the northern third of the island of Great Britain, it shares a border with England to the south and is bounded by the North Sea to the east, the Atlantic Ocean to the north and west, and the North Channel and Irish Sea to the...
. In September 2006 he became the first player to exploit the updated transfer regulations
Transfer (football)
In professional association football, a transfer is the action taken whenever a player under contract moves between professional clubs. It refers to the transferring of a player's registration from one professional association football club to another. In general, the players can only be...
of FIFA
FIFA
The Fédération Internationale de Football Association , commonly known by the acronym FIFA , is the international governing body of :association football, futsal and beach football. Its headquarters are located in Zurich, Switzerland, and its president is Sepp Blatter, who is in his fourth...
, football's governing body
Sport governing body
A sport governing body is a sports organization that has a regulatory or sanctioning function. Sport governing bodies come in various forms, and have a variety of regulatory functions. Examples of this can include disciplinary action for rule infractions and deciding on rule changes in the sport...
, which stipulated that players are able to unilaterally walk away from a contract after a fixed period, regardless of the duration of the contract itself. Although the long-term effects of the decision remain unclear, it has been compared to the landmark Bosman ruling
Bosman ruling
Union Royale Belge des Sociétés de Football Association ASBL v Jean-Marc Bosman is a 1995 European Court of Justice decision concerning freedom of movement for workers, freedom of association, and direct effect of article 39 of the EC Treaty...
of 1995 in its potential significance.
Regulations for the Status and Transfer of Players
The regulations which led to the Webster ruling were enacted in response to the European CommissionEuropean Commission
The European Commission is the executive body of the European Union. The body is responsible for proposing legislation, implementing decisions, upholding the Union's treaties and the general day-to-day running of the Union....
, who in 1998 opined that FIFA
FIFA
The Fédération Internationale de Football Association , commonly known by the acronym FIFA , is the international governing body of :association football, futsal and beach football. Its headquarters are located in Zurich, Switzerland, and its president is Sepp Blatter, who is in his fourth...
's then current football transfer system
Transfer (football)
In professional association football, a transfer is the action taken whenever a player under contract moves between professional clubs. It refers to the transferring of a player's registration from one professional association football club to another. In general, the players can only be...
served as an obstruction to players' freedom of movement
Freedom of movement
Freedom of movement, mobility rights or the right to travel is a human right concept that the constitutions of numerous states respect...
compared to workers in other industries. FIFA, and its European counterpart UEFA
UEFA
The Union of European Football Associations , almost always referred to by its acronym UEFA is the administrative and controlling body for European association football, futsal and beach soccer....
, campaigned for a special exemption for football, but after the Commission threatened to abolish the system, the new regulations were put in place by September 2001. Because of the complexity and potential legal ramifications for players, it was five years before Webster's test case emerged.
Article 17
Article 17 of FIFA's Regulations for the Status and Transfer of Players is entitled "Consequences of Terminating a Contract Without Just Cause", and is the fifth article of Chapter IV, "Maintenance of Contractual Stability between Professionals and Clubs". It outlines the provisions which apply if a contract is terminated without just cause, and the requirement for the party in breach to pay compensation. Specifically, it states that any player who signed a contract before the age of 28 can buy himself out of the contract three years after the deal was signed. If he is 28 or older the time limit is shortened to two years. Article 17 was introduced in December 2004, with effect from 1 July 2005.Webster's transfers
In March 2001, Andy Webster joined Hearts from Arbroath F.C.Arbroath F.C.
Arbroath F.C. are a Scottish football club currently playing in the Scottish Second Division. They were founded in 1878 and currently play their home matches at Gayfield, Arbroath, Angus. They play in maroon strips, and are nicknamed "The Red Lichties" due to the red light that used to guide...
for a reported £
Pound sterling
The pound sterling , commonly called the pound, is the official currency of the United Kingdom, its Crown Dependencies and the British Overseas Territories of South Georgia and the South Sandwich Islands, British Antarctic Territory and Tristan da Cunha. It is subdivided into 100 pence...
75,000,
plus a "sell-on clause" which entitled Arbroath to 17.5 percent of any future sum received by Hearts for him. He played regularly for the next five years, and made 22 appearances for the Scotland national football team
Scotland national football team
The Scotland national football team represents Scotland in international football and is controlled by the Scottish Football Association. Scotland are the joint oldest national football team in the world, alongside England, whom they played in the world's first international football match in 1872...
. In July 2005, Glasgow
Glasgow
Glasgow is the largest city in Scotland and third most populous in the United Kingdom. The city is situated on the River Clyde in the country's west central lowlands...
side Rangers F.C.
Rangers F.C.
Rangers Football Club are an association football club based in Glasgow, Scotland, who play in the Scottish Premier League. The club are nicknamed the Gers, Teddy Bears and the Light Blues, and the fans are known to each other as bluenoses...
were credited with an interest in Webster, and the player requested permission to speak to them. This was refused, and Hearts told the player he would be part of their squad that season. However, in 2006 he became involved in a dispute with club owner Vladimir Romanov
Vladimir Romanov
Vladimir Nikolayevich Romanov ; born 1947 in Tver Oblast, Russian SFSR, USSR) is an ethnic Russian businessman who also holds Lithuanian citizenship following that country's independence from the Soviet Union. He is chairman of UBIG Investments which is the majority shareholder in Scottish Premier...
after refusing to extend his contract, and was subsequently omitted from the squad for the remainder of the 2005–06 season. Webster, who still had a year of his existing contract remaining, then signed for English
England
England is a country that is part of the United Kingdom. It shares land borders with Scotland to the north and Wales to the west; the Irish Sea is to the north west, the Celtic Sea to the south west, with the North Sea to the east and the English Channel to the south separating it from continental...
Premiership club Wigan Athletic
Wigan Athletic F.C.
Wigan Athletic Football Club is an English Premier League Association football club based in Wigan, Greater Manchester, having been promoted from the Championship in 2005. Wigan's current spell in the Premier League is the only top flight run in the club's history.They have played at the DW...
in August that year. The transfer was a protracted affair; it took several months before contracts were approved by FIFA, and the governing body took further time to ascertain if Webster's former club were due any compensation. The matter was further complicated by Hearts' initial refusal to release the player from their books as they sought to challenge the decision.
Despite the efforts made to sign him, Wigan did not provide Webster with a regular first team place, and in January 2007 he returned to Scotland
Scotland
Scotland is a country that is part of the United Kingdom. Occupying the northern third of the island of Great Britain, it shares a border with England to the south and is bounded by the North Sea to the east, the Atlantic Ocean to the north and west, and the North Channel and Irish Sea to the...
after Rangers signed him on loan for the remainder of the 2006–07 season. Despite persistent injuries which prevented him playing, Rangers manager Walter Smith
Walter Smith
Walter Smith, OBE is a Scottish football manager. His most recent job was at Scottish Premier League club Rangers.Smith had a relatively modest playing career, consisting of two spells with Dundee United which was split by a short time at Dumbarton.A pelvic injury meant he moved in to coaching at...
extended his loan contract to 2008, although a permanent move was not organized until June 2008 as litigation over the Hearts–Wigan transfer continued.
FIFA and CAS rulings on the Webster case
Hearts had initially placed a valuation of £5 million on Webster. However, because he had served more than three years of his contract he was outwith FIFA's "protected period", and any compensation due to Hearts would, per Article 17, be based primarily on the amount of Webster's salary still outstanding—a figure estimated by Webster's advisors at approximately £250,000.FIFA's transfer arbitration tribunal, the Dispute Resolution Chamber, met on 4 April 2007 and ruled that Hearts were due £625,000, based on Webster's future wages, his earning potential, and the legal costs. They also found Webster guilty of breaking his contract "without just cause", although only on a technicality; he and his agent
Sports agent
A sports agent procures and negotiates employment and endorsement contracts for an athlete.In return, the sports agent generally receives between 4 and 10% of the athlete's playing contract, and 10 to 20% of the athlete's endorsement contract, though these figures vary...
were late informing the club of his intention to leave, because of confusion over the final match of the season (Hearts had reached the 2006 Scottish Cup Final
2006 Scottish Cup Final
The 2006 Scottish Cup Final was played on 13 May 2006 at Hampden Park in Glasgow and was the final of the 120th Scottish Cup. The final was contested by Heart of Midlothian , who beat Hibernian 4–0 in the semi-final, and Gretna, who beat Dundee 3–0....
, but the time limit was calculated from the club's last league game, four days prior to the Cup match). For this he was suspended for the first two weeks of the 2007–08 season.
Hearts were quick to lodge an appeal against the ruling, disputing the figure which they said had not been unambiguously calculated. Webster had also indicated a desire to appeal, believing the fine against him was excessive. On 30 January 2008 the Court of Arbitration for Sport
Court of Arbitration for Sport
The Court of Arbitration for Sport is an international arbitration body set up to settle disputes related to sport. Its headquarters are in Lausanne and its courts are located in New York, Sydney and Lausanne, Switzerland...
, the highest arbitration authority in sport, met in Lausanne
Lausanne
Lausanne is a city in Romandy, the French-speaking part of Switzerland, and is the capital of the canton of Vaud. The seat of the district of Lausanne, the city is situated on the shores of Lake Geneva . It faces the French town of Évian-les-Bains, with the Jura mountains to its north-west...
and clarified the original ruling. They also reduced the compensation due payable by Webster to £150,000.
Reactions and analysis
The general assessment from commentators is that the ruling is the most significant since Jean-Marc BosmanJean-Marc Bosman
Jean-Marc Bosman is a former Belgian footballer, whose judicial challenge of the football transfer rules led to the Bosman ruling...
successfully challenged
Bosman ruling
Union Royale Belge des Sociétés de Football Association ASBL v Jean-Marc Bosman is a 1995 European Court of Justice decision concerning freedom of movement for workers, freedom of association, and direct effect of article 39 of the EC Treaty...
the restrictions on freedom of movement for workers
Freedom of movement for workers
The freedom of movement for workers is a policy chapter of the acquis communautaire of the European Union. It is part of the free movement of persons and one of the four economic freedoms: free movement of goods, services, labour and capital...
for footballers in 1995. There is also speculation that the days of record-breaking transfer fees may be at an end. High profile players like Frank Lampard
Frank Lampard
Frank James Lampard is an English professional footballer who plays as an attacking midfielder for Chelsea and the England national team. He also holds the position of vice-captain for his club side...
, Cristiano Ronaldo
Cristiano Ronaldo
Cristiano Ronaldo dos Santos Aveiro, OIH, , commonly known as Cristiano Ronaldo, is a Portuguese footballer who plays as a winger or striker for Spanish La Liga club Real Madrid and is the captain of the Portuguese national team...
, Michael Owen
Michael Owen
Michael James Owen is an English professional footballer who plays as a striker for Manchester United.The son of former footballer Terry Owen, Owen began his senior career at Liverpool in 1996. He progressed through the Liverpool youth team and scored on his debut in May 1997...
, Steven Gerrard
Steven Gerrard
Steven George Gerrard MBE is an English footballer who plays for and captains Premier League club Liverpool. He also has 89 caps for the England national team. He has played much of his career in a centre midfielder role, but he has also been used as a second striker and right winger...
and Wayne Rooney
Wayne Rooney
Wayne Mark Rooney is an English footballer who plays as a striker for Premier League club Manchester United and the England national team...
have all been cited as examples of players who could either leave their club for a relatively small amount, or increase their contract bargaining power as a result. Several other players have taken advantage of Article 17, including Tony Sylva
Tony Sylva
Tony Mario Sylva is a Senegalese footballer who plays as a goalkeeper. He is currently unattached. Sylva has played for AC Ajaccio, AS Monaco, Lille and Trabzonspor.- AS Monaco :...
and Jonás Gutiérrez
Jonás Gutiérrez
Jonás Manuel Gutiérrez is an Argentine footballer who plays for English Premier League side Newcastle United, and for the Argentinian national team, as a winger. He acquired his nickname "Spider-Man" or "Spider-Mag" during his time at Real Mallorca where he celebrated a goal by putting on a...
.
FIFA were highly critical of the ruling; president Sepp Blatter
Sepp Blatter
Joseph S. Blatter , commonly known as Sepp Blatter, is a Swiss football administrator, who serves as the 8th and current President of FIFA . He was elected on 8 June 1998, succeeding João Havelange. He was re-elected as President in 2002, 2007, and 2011...
said "the verdict in favor of the player will have far-reaching and damaging effects on the game as a whole. [It] is... a Pyrrhic victory for those players and their agents who toy with the idea of rescinding contracts before they have been fulfilled." Football clubs were also hostile; A Hearts spokesman described it as a "dark day for football clubs", while Celtic F.C.
Celtic F.C.
Celtic Football Club is a Scottish football club based in the Parkhead area of Glasgow, which currently plays in the Scottish Premier League. The club was established in 1887, and played its first game in 1888. Celtic have won the Scottish League Championship on 42 occasions, most recently in the...
, one of Hearts' and Rangers' rivals, stated bluntly that they would sue any player who broke his contract, believing that a court of law would support them regardless of any prior arbitration decision. The European Club Association
European Club Association
The European Club Association is an organization representing football clubs in Europe- History :Formed on the dissolution of the G-14 group in January 2008, the European Club Association represents 201 clubs, made up of 103 ordinary members and 98 associated members, with at least one from each...
has vocally criticised the ruling on several occasions, most notably after CAS decided Real Zaragoza
Real Zaragoza
Real Zaragoza, S.A.D. is a Spanish association football team from Zaragoza in Spain. Founded on 18 March 1932, Real Zaragoza have spent the majority of their 78 year history in the Spanish top-flight. Real Zaragoza are Spain's 9th highest ranked team in overall league points...
had to compensate FC Shakhtar Donetsk
FC Shakhtar Donetsk
FC Shakhtar Donetsk is a Ukrainian professional football club from the city of Donetsk. Shakhtar has appeared in several European competitions and currently is often a participant of the UEFA Champions League. The club became the first Ukrainian club to win the UEFA Cup in 2009, the last year...
for Brazilian midfielder Matuzalém's controversial transfer in May 2009.
Conversely, players' organizations were highly supportive of CAS's decision. Tony Higgins
Tony Higgins
Anthony Higgins is a Scottish former professional association football player.-Club career:During his career Higgins played for Hibernian, Partick Thistle, Greenock Morton and Stranraer...
, a Scottish representative of international footballers' union FIFPro
FIFPro
The Fédération Internationale des Associations de Footballeurs Professionnels , usually known by the abbreviation FIFPro, is a worldwide representative organization for professional football players. At the moment there are 43 national players associations who are members of FIFPro...
, said "Article 17 gives footballers the sort of employee rights that anyone else would expect in the workplace", while Fraser Wishart
Fraser Wishart
Fraser Wishart is a Scottish former professional footballer, former Secretary of the Scottish Professional Footballers' Association, and current chief executive of the Professional Footballers' Association Scotland...
, the general secretary of the Scottish players' union who had supported Webster's case, described it as "a new groundbreaking decision enabling players to enjoy greater freedom of employment."