Clubs compensation if trainees sign elsewhere

Football clubs who train young players only to see them sign their first professional contract with another EU club can now claim compensation, European judges ruled yesterday.

The European Court of Justice's (ECJ) verdict came in a case involving French player Olivier Bernard, who joined Newcastle in 1997 at the end of a three-year training contract with Lyon.

The ECJ found that the payment of compensation to a training club was justified but should be "determined by taking account of the costs borne by the clubs in training both future professional players and those who will never play professionally".

At the time, French rules required trainee players to sign their first professional contract with the club that trained them. But Bernard signed with Newcastle, leading Lyon to take legal action against the player and the club, demanding €53,000 in damages.

The French justice system found in Lyon's favour but halved the sum awarded. However the player and Newcastle appealed, and the French appeal court asked the ECJ whether requiring a trainee to pay damages if he signs for a club in another European country breached EU law.

The ECJ found yesterday that the French rule was a restriction on the freedom of movement for workers, including footballers, but said it could be justified under certain circumstances, such as the need to encourage recruitment and training of young professional players.

The judgement said: "In view of the considerable social importance of sporting activities, and in particular football in the EU, the objective of encouraging the recruitment and training of young players must be accepted as legitimate.

"In the court's view, the prospect of receiving training fees is likely to encourage football clubs to seek new talent and train young players.

"A scheme providing for the payment of compensation for training where a young player, at the end of his training, signs a professional contract with a club other than the one which trained him can, in principle, be justified by the objective of encouraging the recruitment and training of young players."

The judgement will now allow Lyon to seek compensation from Newcastle.