Footballers' salaries are the stuff of legend. The average player in the Premier League, for example, scrapes by on just £240,000 a month – plenty of cash for naff houses, vulgar cars, and, lately, dodgy investment schemes. The reason they are all so fabulously wealthy is down to one man – Belgian journeyman midfielder Jean-Marc Bosman and his fight for justice.
Bosman plied his trade with clubs Standard Liege and RFC Liege in the 1980s, winning 20 youth caps for Belgium in the process. In 1990, he wanted to leave RFC Liege and move to French club Dunkerque. But Liege wanted a fee, and Dunkerque didn't want to pay it. So Bosman stayed at Liege, who were relegated. His earnings subsequently dropped.
The cheesed-off Bosman wasn't happy, and sued for restraint of trade. It took five years and a fair few appeals before the matter was ultimately decided, but on this day in 1995, the “Bosman Ruling” or Union Royale Belge de Football Association ASBL v Jean-Marc Bosman was handed down by the European Court of Justice. It gave footballers freedom of movement on a par with any other trade. From now on, out-of-contract players could leave their clubs and go anywhere in the European Union without their new club paying a transfer fee.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
It was a significant factor in making football the money-spinning business it is today. Because clubs no longer had to pay a fee to a player's old club, players demanded bigger salaries and signing-on fees. The ruling also banned European domestic football leagues, as well as UEFA, from limiting the number of foreign EU players a side could field. This had a huge effect in European club competitions.
Before the ruling, UEFA rules said sides could only have three foreign players (plus a further two if they had come up through the youth system). This caused English teams in particular big problems, as Scottish, Welsh and Northern Irish players counted as “foreign”. That meant some clubs – notably Manchester United – couldn't play their strongest side in European competitions, and were at a disadvantage.
As a consequence, the post-Bosman Manchester United side that won the Champions League in 1999 contained just five English players. Post-Brexit, of course, this could all change.
-
Who’s driving Tesla?As Elon Musk steps back from government with his eyes on the stars, investors ask if he’s still behind the wheel at his electric-car maker.
-
Family faces £1 million inheritance tax bill over widespread issue with holiday letsMany bereaved families with furnished holiday lets are unable to claim business property relief and have to pay inheritance tax, lawyers say.
-
31 August 1957: the Federation of Malaya declares independence from the UKFeatures On this day in 1957, after ten years of preparation, the Federation of Malaya became an independent nation.
-
13 April 1960: the first satellite navigation system is launchedFeatures On this day in 1960, Nasa sent the Transit 1B satellite into orbit to provide positioning for the US Navy’s fleet of Polaris ballistic missile submarines.
-
9 April 1838: National Gallery opens in Trafalgar SquareFeatures On this day in 1838, William Wilkins’ new National Gallery building in Trafalgar Square opened to the public.
-
3 March 1962: British Antarctic Territory is createdFeatures On this day in 1962, Britain formed the British Antarctic Territory administered from the Falkland Islands.
-
10 March 2000: the dotcom bubble peaks
Features Tech mania fanned by the dawning of the internet age inflated the dotcom bubble to maximum extent, on this day in 2000.
-
9 March 1776: Adam Smith publishes 'The Wealth of Nations'
Features On this day in 1776, Adam Smith, the “father of modern economics”, published his hugely influential book The Wealth of Nations.
-
8 March 1817: the New York Stock Exchange is formedFeatures On this day in 1817, a group of brokers moved out of a New York coffee house to form what would become the biggest stock exchange in the world.
-
7 March 1969: Queen Elizabeth II officially opens the Victoria Line
Features On this day in 1969, Queen Elizabeth II took only her second trip on the tube to officially open the underground’s newest line – the Victoria Line.
