The court said Lyon is entitled to be reimbursed after Olivier Bernard moved from the French club to sign his first deal at English team Newcastle in 1999.
Lyon sued Bernard and Newcastle for about 53,000 euro($73,400) in damages - an amount he would have earned had he stayed with the French club. But the court said Lyon can only recoup the actual cost of training Bernard, not an anticipated economic loss.
Crucially, the court approved the practice of French football authorities to compel young players to sign with teams that trained them - even though that violates the EU's freedom-of-movement rules.
The court exempted EU clubs, saying it is necessary for them to be able to recruit, train and benefit from young talent. It added that the exemption was merited given the special status of football in Europe.
The ruling was welcomed by a spokeswoman for the European Conservatives in the European Parliament as recognizing “the unique nature of sport.” “The majority of the rules surrounding player transfers should be set by the governing bodies who understand their sports,” Emma McClarkin in a statement. “This ruling will encourage football clubs to continue investing in young talent without the fear of their cash being used for another club's gain.” In 1995 in a landmark case, the EU high court allowed players to move freely to another club at the end of their contracts and banned any limits on those from other EU nations from playing in national leagues.
