ECJ: Portuguese Football No-Poach May Comply with EU Law

The European Court of Justice stated that Portuguese football clubs' no-poach agreement during the COVID-19 pandemic could potentially meet EU law requirements. The agreement, reached in April 2020, prevented clubs from signing players who had unilaterally terminated contracts due to pandemic circumstances. esporist.org

While acknowledging the agreement restricted competition, the ECJ noted it occurred in the 'very specific context' of the pandemic and aimed to ensure player roster stability and competition regularity. The Portuguese competition body initially deemed it a violation in 2022, but the ECJ found the agreement pursued 'an aim objectively favourable to competition.' The Portuguese court will now determine if the agreement actually distorted competition.