15 Premier League clubs – including Chelsea – have reportedly ‘voted in favour of limiting the amortisation of new contracts to a maximum of five years’.
Chelsea have spent over £1bn on new signings since Todd Boehly’s takeover was completed ahead of the 2022/23 campaign.
Some rivals have questioned how Chelsea have managed to get around Financial Fair Play issues while spending such a ridiculous amount on signings.
A recent report from Manchester Evening News claimed: ‘Financial fair play rules have prompted United to become more proactive sellers, though club sources insist no player will be forced out and manager Erik ten Hag does not want to sanction sales that would weaken the squad.
‘Following Everton’s 10-point deduction for breaching the Premier League’s profitability and sustainability rules, figures at United are believed to be baffled by the prospect of more extravagant spending in January by Chelsea, who have spent more than £1billion on players across the last three transfer windows.’
One method Chelsea has used to spread the cost of their transfers is to tie their signings down to seven/eight-year contracts to reduce the cost of payments per season.
Despite this, David Ornstein of The Athletic has revealed that Chelsea and 14 other Premier League clubs have voted in favour ‘of limiting amortisation of new contracts to five years’. It is noted that contracts can be longer ‘but amortisation can’t’.
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This new ruling ‘will not be backdated to include transfers that have already happened’. The report adds.
‘The clubs voted on the measure at a shareholders’ meeting on Tuesday. The vote passed with 15 clubs — including Chelsea, who had attracted attention for the long contracts of some of their new signings in the past 18 months — in favour, two against and three abstentions.
‘The Premier League confirmed the rule change for new and extended contracts in an official statement following The Athletic’s report later on Tuesday.
‘The statement added that teams had also voted in favour of enabling the Premier League board to stop a club from registering more players in situations where they owe a transfer debt to another Premier League or English Football League (EFL) side until that outstanding payment has been made. The offending club could also see the outstanding amount deducted from their share of the league’s prize money.
‘Previously, clubs could amortise — spread the cost of a transfer, in accounting terms — over the full length of any contract.’
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