EU court says soccer leagues can lock down transfer windows in extreme crises such as pandemics

The Court of Justice of the European Union (CJEU) has opened the door for soccer leagues to temporarily shut down their transfer markets—and limit fair competition—during extreme situations like the COVID‑19 pandemic, as long as the main goal is to protect the integrity of the competition and the measure is proven to be necessary and proportionate to keep clubs stable.

Portuguese clubs appeal against sanction

The ruling comes in response to a question from Portuguese courts after Portugal’s professional league and its clubs were sanctioned for a 2020 agreement not to sign any player who had terminated his contract with another Portuguese club because of the pandemic. The clubs feared players would walk away for free to rival teams, potentially destabilizing the league.

In April 2022, Portugal’s Competition Authority ruled that these “no‑poach” commitments were designed to “restrict competition” in the labor market for players eligible to compete in those championships. The Portuguese league and the clubs appealed, and the higher court asked the CJEU for guidance.

In its decision issued Thursday, the EU’s top court acknowledges that no‑poach agreements are a “clear restriction” of competition because they affect player recruitment and potentially their wages. But it also stresses that the analysis can’t ignore the broader legal and economic context in which the deal was made.

The court notes that the mere existence of the pandemic does not automatically justify an exception to competition rules, “not even in sports.” Still, it instructs the Portuguese court to factor in those extraordinary circumstances when deciding whether the agreement’s purpose was to prevent, restrict, or distort competition.

The CJEU adds that while the agreement was objectively anti‑competitive in terms of hiring, it also pursued an objective that could favor competition: preserving the stability of team rosters in Portugal’s first and second divisions so the season could resume.

The ruling underscores that safeguarding the integrity of sports competitions is a “legitimate objective of general interest.” That means such an agreement could be compatible with EU law if it genuinely helped ensure the season’s restart and roster stability at a time of extreme uncertainty.

Now it’s up to the Portuguese courts to conduct an “in‑depth” review of the pact—testing its suitability, necessity, and proportionality. They must determine whether there were less restrictive ways to protect the league and whether the agreement resulted in undue financial benefits for clubs at the expense of players’ labor rights.

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