UEFA’s Executive Committee has officially announced regulatory changes that will prevent clubs from finding Financial Fair Play loopholes moving forward in the wake of Chelsea’s 2022-23 assault on the transfer market that looked set to once again change the transfer landscape.
The amended measures come in the wake of the Blues’ way of operating under new owners Todd Boehly and Behdad Eghbali which saw the club splash £600m across elongated contract lengths – of up to eight years – that were previously unseen in the football world.
UEFA confirm player transfer fees can only be amortised for a maximum of five years even if the contract length is longer.
The new rule is not backdated meaning any existing 5+ year deals can still be put on the books over a longer period. pic.twitter.com/rtpd26ruXY
— Ben Jacobs (@JacobsBen) June 28, 2023
Now, transfer fees are only capable of being amortized for, at most, five years regardless of the length of an agreed contract. As CBS Sports’ Ben Jacobs reported, given that the new measures are not backdated to tackle contracts already on the books, this will only be set to take effect on 1 July.
A prime example of this is the deal that Chelsea struck to secure Argentine starlet Enzo Fernándes from SL Benfica in the wake of his sensational 2022 World Cup where he was a key instrument on the pitch for Lionel Scaloni that ended with the South American giants bagging their third tournament win and a first for Lionel Messi.
Though Chelsea spent a record sum on the 22-year-old, the structure of his deal – and many others – is what allowed the Blues to comfortably part ways with £600m.
Benfica received £107m for Fernández, but on Chelsea’s books, the deal was amortized for around £12.6m-per-year over the duration of his contract in order for the club to skirt along the lines regarding FFP regulations and the possibility of sanctions.
While many clubs are likely to either begin – or continue – to add longer contracts in order to maximize market movement, this is one step in aiding football’s governing bodies from avoiding a scenario where North American-style contract structure began to dominate the footballing landscape.
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