Premier
League clubs will no longer be able to spread the cost of a transfer fee
across more than five years of a player’s contract.
In June, UEFA announced it had closed a loophole allowing clubs to spread a
fee over a longer period, and on Tuesday the Premier League confirmed its
clubs had now voted to amend competition rules to bring the league in line
with European regulations.
Chelsea signed a number of players on lengthy deals in the summer of 2022
and in January of this year, including handing eight-and-a-half-year
contracts to Enzo Fernandez and Mykhailo Mudryk in January. The rule change,
however will not be backdated meaning such deals will be unaffected.
If transfer fees are spread evenly over the course of a contract, it means
the longer it is, the smaller the annual payments recorded on the club's
accounts are.
For instance, a £100m fee would be amortised at £20m a year with a five-year
contract, but at only £12.5m a year if a deal was eight years.
A league statement read: "Going forward, a five-year maximum will apply to
all new or extended player contracts."
Clubs also approved a rule amendment empowering the league's board to block
a club from registering new players where they owe a transfer debt to
another Premier League or EFL club until the debt is paid.
The board also has the option to deduct the amount owed from the club's
entitlement to the central league funds.
Dorsett: Spreading the cost won't impact
big transfer fees
Sky Sports senior report Rob Dorsett:
"It's complicated, but it's important, so if you're a Chelsea fan read on.
"The Premier League clubs have today voted on a very significant new rule.
The length of time with which a club can spread the cost of a transfer fee
is going to be limited.
"Up until now, you could sign a player for 10 years, and spread the payment
of that contract over 10 years. It's called amortisation.
"From now, you're only going to be able to spread the cost across five
years.
"Look at Mykhailo Mudryk, for example, who signed the longest contract in
Premier League history, and he was signed for £88.5m. In old rules, because
it was an eight-year contract, that fee would only cost Chelsea about £10m a
year.
"Chelsea have used it carefully and cleverly. Crucially, this isn't going to
be backdated. Only players signed from now are affected.
"This brings the Premier League in line with UEFA rule, who already had this
in place. It makes clubs more sustainable and reduces their risk.
"Nobody wanted to punish Chelsea here, which is why they've decided not to
backdate. Crucially, it means Chelsea have had the advantage of putting
these players on long contracts, but they won't be allowed to do that again
with new players.
"I don't think it will have an impact on transfer fees. It's just an
accounting procedure. Clubs can account for the player they've signed. Clubs
can still make longer deals, but accounting-wise, the cost can only be
spread over five years."
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