A loophole notoriously exploited by Chelsea has been quashed by Premier League clubs - with the Blues also voting to change the rules.
On Tuesday, 15 top-flight teams - including the Blues - voted in favour of curtailing the length of contracts handed out to new signings to a maximum of five years. The vote took place at a shareholders meeting and the outcome was later confirmed in a released statement from the Premier League.
They said: "Premier League Shareholders today agreed to amend the rule on amortisation of player registration costs to bring it 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."
Bizarrely, the proposed regulation appeared to be directed at Chelsea, who despite spending more than £1billion since Todd Boehly took over have managed to avoid Financial Fair Play irregularities by handing out lengthy contract terms. They 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.
UEFA had already moved to close the loophole in June, with the Premier League now going down the same route. Of the five remaining clubs not to be in favour, two went against it and three abstained.
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 £100million fee would be amortised at £20million a year with a five-year contract, but at only £12.5m a year if a deal was eight years.
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.
kowcdenopr
1
so Chelsea is basically paying 13 mil per year for Enzo and 7.1 mil per year for Mudrky. quite unbelievable
ruscepsty
0
It'd be better if he used that smartness to bring match winners including the coach. We don't have lethal attackers and that kills the conference until we concede goals and eventually lose matches.
Domdilnop
4
this Chelsea ahh!!!!,after using the loophole then voted to close it.so that no team will use it boly real out smart EPL board
rewdlmnpru
0
The saying is locking the gate after the horse as bolted.
veoabdino
5
Chelsea finessed them 😂😂😂😂 used the loophole then voted to close it
libelorsyz
2
So a whole FA can be outsmart like this?
akiamo
0
👌 genius Todd has jacked up epl shareholders....1 zero✊👊💪
lopbdeikls
1
that says it all epl wants to cripple Chelsea an that goes to all of England .yull queen was the most currpt personal in England
Loedklny
3
good