THE HISTORY

THE European Commission insist football's current transfer system is illegal because it breaches employment law set out in the Treaty of Rome.

The Commission believe that a player should be able to terminate a contract prior to its expiration and to move to a club of his choice without the consent of the club with whom he is registered and for no transfer fee.

This would bring football in line with other forms of employment, which require the employee to merely serve a period of notice prior to their defection.

They ordered an investigation into football's transfer system because they claimed it infringed on an individual's right to work and free movement of the individual.

The EC served notice on the game two years ago, advising it to come up with a replacement system.

FIFA'S RESPONSE

A TOP level FIFA task force came up with a range of proposals to satisfy the EC's strict employment laws and avoid threats to dismantle the present system.

The abolition of all transfer fees for players aged 24 and over, but with the chance for clubs to demand compensation based on players' salaries.

Players to sign minimum one-year contracts

Any movement of players between clubs will take place just once a year and out of season.

The end of international transfers for players under 18.

Players aged between 18 and 24 will still have a transfer value but based on the costs of training and developing the player.

It is now understood that the EC have agreed they do not consider FIFA's recent attempts at putting forward a solution to be an official plan of action.

For, according to many in the European game, FIFA virtually threw in the towel in offering too much too soon having disregarded the seriousness of the challenge to the current system within the EC.

The EC, who insist that some changes are legally required, have privately confirmed that they will only consider the official recommendations of a joint UEFA-FIFA committee set up to find football's ideal solution.

These have to be made by a deadline of October 31 and the onus is still on football to come up with a workable solution which conforms to the requirement of a "less restrictive system" that cannot be challenged in the courts.

The EC are due to make their final ruling by the end of the year.

THE IMPACT

PLAYERS over the age of 24 would sign one-year contracts and move for free in line with EC laws.

Players would only have to serve short notice periods, could change clubs regularly unless there was at least a regulated transfer window.

At places like Old Trafford players like David Beckham and Ryan Giggs, worth at least £50million, could walk away for free.

Even if clubs could demand compensation, a player like Beckham would cost less than £3million based on a club paying Manchester United two years of his salary, reputed to be £1.45million.

Fan fervour for their teams and favourite players could diminish as teams that end the season are very different to those that started.

The spirit of competition would diminish as the gap between the Premier League and smaller clubs widens.

At Bootham Crescent, the money earned from selling on its brightest young talent like Richard Cresswell and Jonathan Greening has ensured the clubs' survival.

If transfer fees were abolished then the most important source of survival for clubs like York will go to.

Youth development would suffer as there would be little incentive for club's to maintain their academies.

Football will suffer as a result; clubs will have little incentive to maintain their youth systems as the talent they have developed quit the club for nothing.

There could be benefits; making it far easier for clubs to off-load unwanted players and reduce their wage bill.

But that brings problems for players who are less in demand. Players would lose the security of a longer-term contract.

WHAT IS BEING DONE

A LOBBYING campaign aimed at influencing the EC ahead of their ruling is being led by English football's governing bodies.

The bodies - including the Football Association, Premier League and Football League - realise that at least some changes have to be made to the status quo due to European laws.

However, they are determined to ensure there are as few alterations as possible.

The English governing bodies have therefore sent leaflets to national associations, leagues, clubs and player bodies across Europe to gain proof of their support for the current system.

They are appealing to supporters who oppose massive changes to the status quo to make their feelings known by e-mailing the FA's website via infoatthe-fa.org.