UEFA sets five-year limit on transfer fee amortisation | OneFootball

UEFA have announced new financial sustainability regulation that will allow clubs a maximum of five years to pay off transfer fee instalments.

Previous regulations allowed clubs to pay transfer fees over the duration of a player’s contract. But the fresh amendment has limited amortisation to a five-year period – even if they are signed to longer deals.

The new rule will take effect from July 1, meaning transfers that have already taken place and contracts already signed will not be affected.

UEFA’s amendment comes after clubs like Chelsea exploited the loophole to spread the cost of their record-breaking £600 million transfer splurge over up to eight years.

The Blues paid Shakhtar Donetsk an initial £62m to sign Mykhaylo Mudryk in January. But the Ukrainian forward penned an eight-and-a-half-year deal, meaning the cost of business will be amortised over the duration of his contract.

The same tactics were used to sign Enzo Fernandez, who cost the club a whopping £106m when he joined from Benfica during the January transfer window.

However, the World Cup winner’s transfer fee will also be paid over eight years after he signed a deal keeping him at Stamford Bridge until 2031.

The loophole allowed Chelsea to narrowly avoid Financial Fair Play sanctions, with the Blues also handing summer signing Nicolas Jackson an eight-year deal after joining from Villarreal for around €37m.

However, amendments that will be enforced from the start of next month have been established to limit any club’s room for manoeuvre in subsequent transfer windows.

UEFA said in a statement: “The amortisation of the player’s registration will be limited to five years in order to ensure equal treatment of all clubs and improve financial sustainability.

“In case of contract extension, the amortisation can be spread over the extended contract period but up to a maximum of five years from the date of the extension.

“Such a change will not restrict the way in which clubs operate and will not apply retroactively to transfer operations that have already taken place.”

Chelsea’s heavy spending last year has already led to the exits of some high-profile players this summer as they look to trim their bloated squad while reinforcing core areas of the team.