The UEFA Executive Committee has closed a loophole concerning the amortisation of player contracts. The amortisation period will now be limited to five years, preventing clubs from spreading the cost of big transfer fees over lengthy contracts. This move aims to promote equal treatment among clubs and enhance financial sustainability.
The decision is likely influenced by Chelsea's recent transfer market tactics. Chelsea's significant spending has been facilitated by long-term contracts, allowing them to spread the cost of big signings while complying with Financial Fair Play Rules. Examples include Enzo Fernandez's £107 million signing on an eight-and-a-half year contract and Mykhailo Mudryk's Premier League record-breaking eight-and-a-half year contract.
Todd Boehly employed a similar strategy with players like Benoit Badiashile (seven-and-a-half year contract), David Datro Fofana (six-and-a-half year contract), Wesley Fofana (seven-year contract), and Marc Cucurella (six-year contract).
Many have wondered how Chelsea managed such extensive spending, and the answer lies in amortisation. Boehly's dominance in the transfer market through this loophole caught the attention of other clubs, prompting the UEFA Executive Committee to plan its closure.
Chelsea's signing of Fernandez in February may have been a strategic move to exploit the loophole while it still existed.
While Boehly's tactics may appear decisive, Chelsea's 2022/2023 season showed their limitations. Finishing 12th, their worst performance since 1996, raises doubts about the correlation between transfer market success and on-field performance. Continuously underperforming players like Mudryk or Cucurella would burden Chelsea with unproductive players for a cumulative 14 years and £150 million.
The UEFA Executive Committee's decision is a positive development, curbing economic supremacy and leveling the playing field in the transfer market. It aims to prevent inflated transfer fees and ensures affordability for a broader range of clubs.