[1] The need for regular fixtures to earn sufficient revenue to afford player wages led to the formation of the Football League in 1888.
As the Football League grew in popularity, the leading players of the day were in great demand, and commanded ever-increasing wages.
The Football League also took the view that a spread of talent was necessary to sustain the interest of spectators in the competition.
If faced with such a situation, a player had the following stark choices: Football League clubs soon came to realize that they could demand and earn a transfer fee from any other Football League club as consideration for agreeing to release or transfer the player's registration.
In 1961, the successor to the AFU, the Professional Footballers' Association, successfully brought about the end of the maximum wage.
Two years later, in Eastham v. Newcastle United, the High Court ruled that the retain and transfer system was unjustifiable.
At the time, the elements of the system had remained largely unchanged since 1893 and were as follows:[3] In 1959, George Eastham did not sign a new contract with his club, Newcastle United, and requested a transfer.
Nevertheless, backed by the Professional Footballers' Association, which provided financial assistance to pay for his legal fees, Eastham brought proceedings against Newcastle United in the High Court.