Webster ruling

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.cite web | last = Harris | first = Nick | authorlink = | coauthors = | title = Webster ruling sets transfer landmark | work = | publisher = "The Independent" | date = 5 May 2007 | url = http://www.independent.co.uk/sport/football/news-and-comment/webster-ruling-sets-transfer-landmark-447523.html | format = | doi = | accessdate = ] cite web | last = Spiers | first = Graham | authorlink = Graham Spiers | coauthors = | title = Andy Webster ruling set to herald a revolution to rival Bosman | work = | publisher = "The Times" | date = 31 January 2008 | url = http://www.timesonline.co.uk/tol/sport/football/article3279498.ece | format = | doi = | accessdate = ] cite web | last = Nisbet | first = John | authorlink = | coauthors = | title = Webster ruling opens exit door for 'big-name stars' | work = | publisher = "The Independent" | date = 21 February 2008 | url = http://www.independent.co.uk/sport/football/news-and-comment/webster-ruling-opens-exit-door-for-bigname-stars-784861.html | format = | doi = | accessdate = ]

Background

Regulations for the Status and Transfer of Players

The regulations which led to the Webster ruling were enacted in response to the European Commission, 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.cite web | last = | first = | authorlink = | coauthors = | title = Transfer D-day put off | work = | publisher = "BBC Sport" | date = 6 October 2000 | url = http://news.bbc.co.uk/sport1/football/959827.stm | format = | doi = | accessdate = ] cite web | last = | first = | authorlink = | coauthors = | title = EC warns FIFA over transfers | work = | publisher = "Soccernet" | date = 19 June 2000 | url = http://soccernet.espn.go.com/euro2000/news/20000619fifatransfers.html | format = | doi = | accessdate = ] FIFA, and its European counterpart UEFA, campaigned for a special exemption for football,cite web | last = | first = | authorlink = | coauthors = | title = Blatter: Transfer system safe | work = | publisher = "BBC Sport" | date = 10 January 2001 | url = http://news.bbc.co.uk/sport1/football/1110566.stm | format = | doi = | accessdate = ] cite web | last = | first = | authorlink = | coauthors = | title = Fifa optimistic over transfer talks | work = | publisher = "BBC Sport" | date = 10 December 2000 | url = http://news.bbc.co.uk/sport1/football/1064846.stm | format = | doi = | accessdate = ] 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.cite web | last = Harris | first = Nick | authorlink = | coauthors = | title = Stars will buy into 'pay as you go' system | work = | publisher = "The Independent" | date = 13 February 2007 | url = http://www.independent.co.uk/sport/football/news-and-comment/stars-will-buy-into-pay-as-you-go-system-436166.html | format = | doi = | accessdate = ]

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.citation | last = | first = | author-link = | title = Regulations for the Status and Transfer of Players | date = | pages = 14, 33 | url = http://www.fifa.com/mm/document/affederation/administration/status_transfer_en_25.pdf ] 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. The window is shortened to two years if he is 28 or older.cite web | last = Spiers | first = Graham | authorlink = Graham Spiers | coauthors = | title = Celtic get tough over contracts | work = | publisher = "The Times" | date = 3 November 2007 | url = http://www.timesonline.co.uk/tol/sport/football/scotland/article2797091.ece | format = | doi = | accessdate = ] cite web | last = MacDonald | first = Kenny | authorlink = | coauthors = | title = Webster ruling signals new era | work = | publisher = "Eurosport" | date = 9 May 2007 | url = http://uk.eurosport.yahoo.com/09052007/58/premiership-webster-ruling-signals-new-era.html | format = | doi = | accessdate = ] Article 17 was introduced in December 2004, with effect from 1 July 2005.cite journal | last = Thomson | first = Ross | authorlink = | coauthors = | title = Playing by the rules - FIFA’s regulatory powers | journal = The Journal | volume = | issue = March 2007 | pages = 43 | publisher = Law Society of Scotland | location = | date = | url = http://www.journalonline.co.uk/article/1003977.aspx | doi = | id = | accessdate = ]

Webster's transfers

In March 2001, Andy Webster joined Hearts from Arbroath F.C. for £75,000,cite web | last = | first = | authorlink = | coauthors = | title = Jambos in new move for Webster | work = | publisher = "Daily Record" | date = March 29, 2001 | url = http://www.highbeam.com/doc/1G1-72416176.html | format = | doi = | accessdate = ] plus a "sell-on clause" which entitled Arbroath to 17.5 percent of any future sum received by Hearts for him.cite web | last = | first = | authorlink = | coauthors = | title = Interview with Gary Callon, Club Secretary, Arbroath F.C. | work = The current state of Arbroath FC Ltd - the future is bright | publisher = arbroath-mad.co.uk | date = 8 February 2008 | url = http://www.arbroath-mad.co.uk/news/loadnews.asp?cid=TMNW&id=376419 | format = | doi = | accessdate = |quote = Arbroath FC did include a sell on clause when Webster was sold to Hearts for a percentage of any fee received if his registration was transferred while he was still under contract. ] He played regularly for the next five years, and made 22 appearances for the Scotland national football team.cite web | last = | first = | authorlink = | coauthors = | title = Scottish nation team player details - Andy Webster | work = | publisher = Scottish Football Association | date = | url = http://www.scottishfa.co.uk/player_details.cfm?playerid=24461 | format = | doi = | accessdate = ] 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.cite web | last = | first = | authorlink = | coauthors = | title = Webster keen to talk to Rangers | work = | publisher = "BBC Sport" | date = 11 July 2005 | url = http://news.bbc.co.uk/sport2/hi/football/teams/h/heart_of_midlothian/4671637.stm | format = | doi = | accessdate = ] 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.cite web | last = | first = | authorlink = | coauthors = | title = Romanov admits Skacel wants to go | work = | publisher = "BBC Sport" | date = 3 May 2006 | url = http://news.bbc.co.uk/sport1/hi/football/teams/h/heart_of_midlothian/4970138.stm | format = | doi = | accessdate = ] cite web | last = | first = | authorlink = | coauthors = | title = Ivanauskas could keep Hearts job | work = | publisher = "BBC Sport" | date = 5 May 2006 | url = http://news.bbc.co.uk/sport1/hi/football/teams/h/heart_of_midlothian/4976948.stm | format = | doi = | accessdate = ] Webster, who still had a year of his existing contract remaining, then signed for English Premiership club Wigan Athletic in August that year.cite web | last = Spiers | first = Graham | authorlink = Graham Spiers | coauthors = | title = Andy Webster ruling set to herald a revolution to rival Bosman | work = | publisher = "The Times" | date = 31 January 2008 | url = http://www.timesonline.co.uk/tol/sport/football/article3279498.ece | format = | doi = | accessdate = ] 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.cite web | last = | first = | authorlink = | coauthors = | title = Fifa allows Webster to join Wigan | work = | publisher = "BBC Sport" | date = 4 September 2006 | url = http://news.bbc.co.uk/sport1/hi/football/teams/w/wigan_athletic/5233096.stm | format = | doi = | accessdate = ] The matter was further complicated by Hearts' initial refusal to release the player from their books as they sought to challenge the decision.cite web | last = | first = | authorlink = | coauthors = | title = Webster to fight for Wigan place | work = | publisher = "BBC Sport" | date = 29 December 2006 | url = http://news.bbc.co.uk/sport1/hi/football/teams/w/wigan_athletic/6218221.stm | format = | doi = | accessdate = ]

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.cite web | last = | first = | authorlink = | coauthors = | title = Webster checks in as loan Ranger | work = | publisher = "BBC Sport" | date = 5 January 2007 | url = http://news.bbc.co.uk/sport1/hi/football/teams/r/rangers/6236095.stm | format = | doi = | accessdate = ] 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.cite web | last = | first = | authorlink = | coauthors = | title = Webster extends Ibrox loan deal | work = | publisher = "BBC Sport" | date = 29 June 2007 | url = http://news.bbc.co.uk/sport1/football/teams/r/rangers/6255574.stm | format = | doi = | accessdate = ] cite web | last = | first = | authorlink = | coauthors = | title = Webster completes Rangers switch | publisher = "BBC Sport" | date = 9 June 2008 | url=http://news.bbc.co.uk/sport1/hi/football/teams/r/rangers/7443909.stm | format = | doi = | accessdate = ]

FIFA ruling on the Webster case

Hearts had initially placed a valuation of £5 million on Webster.cite web | last = | first = | authorlink = | coauthors = | title = Hearts demanding £5m for Webster | work = | publisher = "BBC Sport" | date = 17 March 2007 | url = http://news.bbc.co.uk/sport1/hi/football/teams/r/rangers/6462949.stm | format = | doi = | accessdate = ] 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 May 2007 and ruled that Hearts were due £625,000, based on Webster's future wages, his earning potential, and the legal costs.cite web | last = | first = | authorlink = | coauthors = | title = Webster must pay Hearts £625,000 | work = | publisher = "BBC Sport" | date = 4 May 2007 | url = http://news.bbc.co.uk/sport1/hi/football/teams/h/heart_of_midlothian/6526119.stm | format = | doi = | accessdate = ] 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 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.cite web | last = MacDonald | first = Kenny | authorlink = | coauthors = | title = Hearts appeal FIFA's Webster ruling | work = | publisher = "Reuters" | date = 25 May 2007 | url = http://uk.reuters.com/article/idUKL2519224120070525 | format = | doi = | accessdate = ] cite web | last = | first = | authorlink = | coauthors = | title = Hearts challenge Webster ruling | work = | publisher = "BBC Sport" | date = 25 May 2007 | url = http://news.bbc.co.uk/sport1/hi/football/teams/h/heart_of_midlothian/6692841.stm | format = | doi = | accessdate = ] Webster had also indicated a desire to appeal, believing the fine against him was excessive.cite web | last = | first = | authorlink = | coauthors = | title = Webster may appeal FIFA fine | work = | publisher = "Eurosport" | date = 9 May 2007 | url = http://uk.eurosport.yahoo.com/09052007/58/spl-webster-appeal-fifa-fine.html | format = | doi = | accessdate = ] On 30 January 2008 the Court of Arbitration for Sport, the highest arbitration authority in sport, met in Lausanne and clarified the original ruling.Citation | last = | first = | author-link = | title = Award - CAS 2007/A/1298/1299/1300 Wigan Athletic FC/Heart of Midlothian/Webster | date = 2008-01-30 | year = | url = http://www.tas-cas.org/d2wfiles/document/363/5048/0/CAS%201298%201299%201300%20Award.pdf | accessdate = ] They also reduced the compensation due payable by Webster to £150,000.cite web | last = MacPherson | first = Graeme | authorlink = | coauthors = | title = Vindication for Webster but a ‘dark day’ for clubs | work = | publisher = "The Herald" | date = 31 January 2008 | url = http://www.theherald.co.uk/sport/headlines/display.var.2007018.0.Vindication_for_Webster_but_a_dark_day_for_clubs.php | format = | doi = | accessdate = ]

Reactions and analysis

The general assessment from commentators is that the ruling is the most significant since Jean-Marc Bosman successfully challenged the restrictions on freedom of movement for workers for footballers in 1995.cite web | last = Spiers | first = Graham | authorlink = Graham Spiers | coauthors = | title = CAS issues landmark decision in soccer contract dispute | work = | publisher = "Associated Press / International Herald Tribune" | date = 30 January 2008 | url = http://www.iht.com/articles/ap/2008/01/30/sports/EU-SPT-SOC-CAS-Contract-Ruling.php | format = | doi = | accessdate = ] There is also speculation that the days of record-breaking transfer fees may be at an end. High profile, highly valued players like Frank Lampard, Cristiano Ronaldo, Michael Owen, and Steven Gerrard were all 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.cite web | last = | first = | authorlink = | coauthors = | title = Webster's clause for concern | work = | publisher = "Special Broadcasting Service" | date = 20 February 2007 | url = http://www6.sbs.com.au/epl/index.php?pid=st&cid=83643 | format = | doi = | accessdate = ]

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."cite web | last = | first = | authorlink = | coauthors = | title = FIFA criticizes CAS ruling on soccer contract dispute
work = | publisher = "Associated Press / International Herald Tribune" | date = 31 January 2008 | url = http://www.iht.com/articles/ap/2008/01/31/sports/EU-SPT-SOC-FIFA-Contract-Ruling.php | format = | doi = | accessdate = ] 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.cite web | last = Spiers | first = Graham | authorlink = Graham Spiers | coauthors = | title = Celtic get tough over contracts | work = | publisher = "The Times" | date = 3 November 2007 | url = http://www.timesonline.co.uk/tol/sport/football/scotland/article2797091.ece | format = | doi = | accessdate = ]

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."

References