European judges ruled that football clubs can seek compensation if young trainees of theirs sign their first professional contract with another club in the EU.
The rule, enforced by the European Court of Justice in Luxembourg, applies to players aged between 16 and 22 and is designed to encourage the recruitment and training of young professionals.
The new European-wide legislation is similar to what is already in place in the UK but can help prevent ongoing disputes between clubs within the entire EU as clubs would receive "proportionate" incentives.
A statement from the European Court of Justice confirmed: "In view of the considerable social importance of sporting activities, and in particular football in the EU, the objective of encouraging the recruitment and training of young players must be accepted as legitimate.
"In the court's view, the prospect of receiving training fees is likely to encourage football clubs to seek new talent and train young players.
"A scheme providing for the payment of compensation for training where a young player, at the end of his training, signs a professional contract with a club other than the one which trained him can, in principle, be justified by the objective of encouraging the recruitment and training of young players.
"The amount of that compensation is to be determined by taking account of the costs borne by the clubs in training both future professional players and those who will never play professionally."
The case which sparked the updated law change was that of Olivier Bernard's controversial move to Newcastle after the player signed a professional contract with the Magpies in 1997 despite undergoing a three-year training scheme with Lyon.
A French court ordered that both player and club were liable for Ј48,000, the equivalent of Bernard's wages had he signed professionally with the Ligue 1 side, in Lyon's favour.
Upon appeal from Newcastle and Bernard, the French appeal court asked the European Court of Justice to intervene as a third party to clear up the matter, and any similar cases in future.
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