UEFA looks set to make changes to their Financial Fair Play rules. The governing body of the sport in Europe has allowed teams to spread out transfer fees on players over the duration of their full contract with their new club. However, new tweaks to the rule will reportedly limit this duration to five years.
The move comes after Chelsea recently signed Mykhailo Mudryk in a deal potentially worth around $108 million. Not only was it a massive deal, but the Blues also tied down the Ukrainian star to an incredible eight-and-a-half-year contract. This means that Chelsea can value the transfer at just $11 million annually.
Chelsea smashes spending record, avoids FFP issues
Mudryk’s contract was one of six similar deals for the Blues since the summer transfer window. Benoit Badiashile and David Datro Fofana both signed six-and-a-half year contracts. Then, Noni Madueke will remain in west London for seven-and-a-half years. Marc Cucurella and Wesley Fofana also signed six and seven-year deals, respectively, from the summer.
So far this season, Chelsea have a net spend of about $404 million. This is already a Premier League record for spending in one campaign. New owner Todd Boehly doesn’t seem to be slowing down just yet either. The American businessman is chasing another midfielder, with Moisés Caicedo and Enzo Fernández reportedly under consideration.
Chelsea, like other similar clubs, have to follow two sets of financial rules. The Premier League has profit and sustainability laws that limit total losses over a three-year period to $129 million. UEFA currently allows clubs to spend up to 70% of their revenue on transfers, agent fees, and player wages.
New changes protect teams, as well
One source with UEFA has told The Times that the new law will also help protect teams as well. “If other clubs start doing the same with eight-year contracts it will be a mess so we need to protect them,” the source said.
“It is simply shifting a problem to the future. Either a club can get stuck with a player on a high salary that they cannot sell, or if they sell him after three or four years they will not realize much profit [in accounting terms] because a lot of his transfer fee has not been amortized.”
Any new rule will not, however, affect previous deals made by Chelsea or any other club. It would only influence future transfers.
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