Home Advantage: The Irish Rugby Football Union's Eligibility Restrictions in Light of the Diarra Case

Abstract

Pursuant to the Irish Rugby Football Union’s (‘IRFU’) rules, players must play for one of four domestic provinces (Leinster, Munster, Ulster or Connacht) to be selected for the national men’s team. Rugby differs from other sports (such as football) because international contracts and match fees are more lucrative for players than club contracts. This practice has been agreed upon by the IRFU and the provinces, with the justification being that players benefit from central contracts with the IRFU (who are able to control how many club matches they play). However, while the IRFU’s policy has reduced significantly the incentive for Irish players to accept contracts abroad, the salaries being paid in the premier French domestic rugby competition (Top 14) have increased massively. Therefore, the IRFU’s restrictive rule is severely limiting the available options for players. In Diarra, the CJEU made two crucial findings in relation to sporting regulators. Firstly, it found that FIFA’s transfer rules were inconsistent with the free movement of workers pursuant to Article 45 TFEU (potentially depriving players of contractual opportunities). Secondly, it held that FIFA’s rules were a restriction of competition by object pursuant to Article 101(1) TFEU. While the court acknowledged the legitimacy of regulating the conditions for the operation of competitions to ensure stability in the composition of teams, governing bodies were not allowed to impose a ‘permanent, drastic and permanent restriction’. The result was an artificial partitioning of national and local markets which disadvantaged players. Further, the rules presented by their very nature a high degree of harm to competition. The article applies the reasoning of the CJEU in Diarra to the IRFU’s eligibility rules to assess their compatibility with fundamental principles of EU law, and in particular, whether they constitute a potential restriction of competition by object.