Fifa president Sepp Blatter has admitted that transfer fees as they currently exist will almost certainly be abolished as they infringe EU legislation on the freedom of movement of workers.

"In our minds we have already taken the position that we have to look at a new system," Blatter said, but he is seeking more time from the EU to find an alternative.

"We have to find a solution and look at the consequences of the decision we make. That is why we need to receive more time from the European Commission."

Blatter was speaking at a meeting of football bodies in Zurich on Thursday, convened to determine a response to the threat to the present transfer system posed by the so-called Perugia case, when a contracted player was signed by the Italian club without a transfer fee being paid.

A consensus appears to have been reached to outlaw the international transfer of players under the age of 18 and to provide some kind of compensation to clubs when a player under 24 leaves them. That, in theory, would give clubs some return for developing young players.

Players over 24, by Blatter's plans, would effectively sign a one-year contract, with players being allowed to move between clubs at only one time of year.

I saw this on the news last night and it suggested that players over 24 will all be on one year contracts. One aspect of this is how does a club get a settled team without paying out signing on fees every year. Effectively there will be less money to the clubs and more to the players. Are we going to end up with a system like in America where we pick from a draft?

-- Anonymous, September 01, 2000

Answers

This from the FT:

Fifa to end transfer fee system By Deborah Hargreaves in Brussels and Patrick Harverson Published: August 31 2000 18:58GMT | Last Updated: September 1 2000 10:18GMT

The world governing body for soccer, Fifa, agreed on Thursday night to end the multi-million pound transfer fee system after the European Commission accused top clubs of running an illegal cartel.

Fifa has accepted it must begin a shake-up of the system or risk the Commission abolishing fees altogether, which Fifa believes would throw the European game into chaos.

The soccer authorities believe there is nothing wrong with the current system and argue an abolition of fees would ruin smaller clubs which rely on selling young stars for financial survival.

But Viviane Reding, the EU's sports commissioner, said on Thursday: "I find it scandalous that players. . . are being used as objects of speculation." Ms Reding, along with Mario Monti, the EU's competition commissioner, has been investigating the transfer system since 1997 after three small clubs filed complaints.

In a summary of the Commission's objections, officials said the system was a "considerable restraint on competition and/or distortion of competition in the market of the sports professional. . . in the EU."

Keith Cooper, Fifa's spokesman, said on Thursday: "We feel the system in place so far has functioned well, but if it proves to be contrary to European law there is not much point arguing. We have to do something about it."

Among changes being considered are: outlawing fees for very young players; restricting the movement of players under 24; banning transfer moves during the season and imposing a minimum one-year duration for player contracts. Final proposals will be put to the Commission within two weeks.

Even if Fifa's reforms are accepted by Brussels, officials have made clear they want to see an end to the massive transfer fees being paid by big clubs for elite players.

The market peaked this summer with 11 deals at over $20m -including Real Madrid's world record $53m to Barcelona for Luis Figo, the Portuguese striker.

The Commission believes the level of fees reinforces the dominant position of the top clubs.

-- Anonymous, September 01, 2000

Don't panic, Don't panic. Everything is going to be juuuusssstt fine. The Premiership Overlords are now criticising the EU so it's only a matter of time beforethe plans are shelved.

MANCHESTER UNITED chief executive Peter Kenyon and director Sir Bobby Charlton have criticised the European Union for interfering in the football transfer system.

Kenyon is the newly appointed chief at Old Trafford, but he is already facing up to the fact that he could lose his star players which include David Beckham, Roy Keane and Paul Scholes. "It is a very, very serious issue," said Kenyon. "It is one of the big issues that will affect football.

"We all believe that for the betterment of football, it will be better not to change."

Charlton was also very scathing in his comments over the new proposals, commenting: "If people just have the freedom to move whenever they like I think it would create a lot of disturbance, disharmony within the world of football.

"It seems to me that politicians are making the rules rather than football people. I think when they've listened, and if they have listened carefully to what might happen, then I think there could be a change to the direction of the plans they have got."

"We at Manchester United make a point of trying to satisfy our fans by providing long-term plans, by getting players under contract, so that we know, and the fans know, who's going to play for them.

"For anyone to just walk away whenever they wish, I think it would so damaging to our game."

-- Anonymous, September 01, 2000

Thanks to the contributors so far who have given us the cuttings but what do WE think of this all-important issue?

It must change things quite fundamentally, and has the potential to ruin the game altogether although I'm sure it will survive. The main worry is that a player with total freedom of contract could switch clubs whenever, week by week is possible. They would, of course, earn vast amounts, in excess of #100K per week in this scenario. Of course, players have to play as a team and managers might be reluctant to bring in a top star for one important match, knowing he is almost certainly off elsewhere in a week or two. Also the fans' identity with a team and 'our' players would be damaged.

I don't know about all this talk of "transfer windows". Surely if we are talking European Law here then transfer windows would be illegal as well?

There is a severe downside for the player. How much would a player like (say) Big Dunc have earned over the past 2 years with his injury record?

I must admit to being increasingly disillusioned with the huge money that now flows through our game. I no longer feel at ease paying these prices and knowing that the cash goes to people who already have too much of it. I think this development will increase the problem and I'm unhappy with it.

Just a thought about any deals mooted at present. Will prices start to fall if the breakdown of the system appears inevitable? Will there be a rush to cash in on star assets? And what about investment in youth schemes? If the player is free to leave any time he likes how many clubs will want to train youngsters? Presumably, only the rich clubs at the top.

All in all I think this has to be bad for the game. These employment laws are there to protect ordinary working people not multi- millionaires.

Or have I got a wrong take on this? Could it be for the good of the game?

-- Anonymous, September 01, 2000

Jonno, I think the proposals try to take into account the fact that players could move on a week-by-week basis. Didn't they say that a player must stay for at least a year? If so, I would expect this to be for a season, with probably a window in the close-season for transfers. Sort your squad oot at the beginning and then be stuck with it - seems they've been learning from the Corinthian League. I knew Softie should have taken oot a patent on it!

-- Anonymous, September 01, 2000

O.K. I'm sure most of you out there have thought of some of these possible affects of the threat to the current transfer system.

First one I found was about the future of shares and current share prices in soccer clubs. This from the SBS site: "Shares in Manchester United, the world's first club to be valued at more than #1 billion, continued to slide on Friday amid fears that European authorities will turn all players into free agents." It should be happening to all clubs.

Lets look at juniors and the reserve team. O.K. so a nominal fee must be payed for players under the age of 24! Just who sets that fee and what will be the bench mark? Does the international ban on the transfers players under 18 mean EPL clubs can't sign up Scotish or Irish lads let alone French or Swedish? Does it mean Clubs with in one nation can still buy and sell players under 18. How do you assess the price of a 16 year old like Jermaine Pennant who moved to Arsenal for 2 million pounds? as opposed to the price of youngster like Andy Griffin who doesn't show the apparent upside at such a young age. Will players like Griffin, and for that matter Kerr, Coppinger and Gavilan settle for playing reserve team football when they know they can move to a smaller club and get regualr first team football, possibly be get paid the same or more, and then leave when the offers come in of a starting spot on one of the big clubs. How will nations outside the EU react. They aren't affected by the EU employment laws, and consequantly the prospect of losing the chance to sell players to European clubs will certainly annoy them to say the least.

-- Anonymous, September 02, 2000