PREMIER LEAGUE CLUBS VOTE TO CLOSE TRANSFER LOOPHOLE EXPLOITED BY CHELSEA
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Fifteen Premier League clubs – including Chelsea – have voted in favour of limiting the length of new contracts being signed by players to a maximum of five years at today’s shareholders meeting.
The topic was on the agenda at today’s meeting in light of Chelsea’s heavy spending since Todd Boehly arrived at the club last year.
The Blues have spent £1bn over the past 18 months, but have managed to adhere to Financial Fair Play (FFP) rules by handing a number of their players long-term contracts of up to eight years to spread the cost across a longer period.
UEFA closed this loophole in June by introducing a five-year limit for the spread of transfer fees, and the Premier League has now followed suit after today’s vote.
It has been confirmed that Chelsea were one of the fifteen clubs to vote for limiting contract lengths, while only two clubs voted against it and three abstained.
A Premier League statement confirming the vote read: ‘Premier League Shareholders today agreed to amend the rule on amortisation of player registration costs to bring in line with UEFA’s regulations. Going forward, a five-year maximum will apply to all new or extended player contracts.
‘Clubs also approved a rule amendment to enable the Premier League Board, in circumstances where a Club owes a transfer debt to another Premier League or EFL Club, to stop the Club registering more players until the outstanding payment has been made.
‘The Board can also have the option to deduct the amount from the Club’s entitlement to the League’s central funds.’
A report earlier today from The Telegraph claimed some clubs wanted the rule change to be backdated to the summer.
However, while the vote change has now been voted through, it has been confirmed that it will not be backdated, meaning Chelsea avoid a potential headache over FFP.
The Blues spent in excess of £400m over the summer, bringing in Moises Caicedo from Brighton for a British record £115m fee, while they also splashed the cash on the likes of Cole Palmer, Nicolas Jackson and Romeo Lavia.
All of these players have signed deals until 2030 or 2031, spreading the cost of the transfers across seven or eight years.
In Caicedo’s case, it means his fee has been amortised at £14.4m-a-year across his eight-year contract, but Premier League clubs wanted this loophole closed and they have got their wish.
Clubs are only permitted to lose £105m across a three-year period, which has been extended to four years due to Covid, under the Premier League’s profit and sustainability rules.
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