EU court rules Portuguese football's no-poach deal may still be legal
A no-poach agreement between Portuguese football clubs during the Covid-19 pandemic could still comply with EU law, the Court of Justice of the European Union (CJEU) has ruled. The decision follows a dispute over whether the deal unfairly restricted competition in player recruitment. National courts must now assess whether its terms were justified by public interest goals.
The agreement in question was struck by the Portuguese Professional Football League (LPFP) and its member clubs. They pledged not to sign players who had unilaterally terminated contracts due to financial hardship caused by the pandemic. While the Portuguese Competition Authority argued that this restricted market competition, the CJEU acknowledged a dual purpose behind the deal.
The court found that the agreement had both anticompetitive effects and potential pro-competitive benefits. Its main goal was to maintain roster stability during a period of economic uncertainty. However, the CJEU clarified that the pandemic alone does not automatically excuse anticompetitive behaviour. Instead, the ruling stated that such agreements may be compatible with EU law if they pursue legitimate public interest objectives. The Portuguese court must now determine whether the restrictions were appropriate, necessary, and proportionate to achieving that objective. This decision arrives as EU authorities intensify scrutiny of no-poach agreements. The European Commission and member states have recently taken enforcement action against similar practices across various industries.
The CJEU’s ruling means the Portuguese court will now review whether the no-poach deal’s restrictions were justified. If deemed proportionate, the agreement could remain lawful under EU competition rules. The case highlights the balance between protecting market competition and addressing extraordinary economic challenges.
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