Next season's squad

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I'm always confused by this. I thought Bosman meant that sport rules had to obey European employment law. So if you are at a club and are considered the better player in your squad in your position but get axed because of league rules purely down to your 'National' status isn't that against the right to employment within the EU? Indeed you maybe refused employment because a squad has no place for you, just because of where you trained. You're playing standard is one that can be debated, but the situation regarding your trained status would be clear cut and could be the only reason you are refused certain contracts.