Premier League clubs have voted to limit the period over which a player’s transfer fee can be paid to five years, regardless of their contract length.
A Premier League statement read: “Premier League Shareholders today agreed to amend the rule on amortisation of player registration costs to bring 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.”
Dorsett: Spreading the cost won’t impact big transfer fees
Sky Sports senior report Rob Dorsett:
“It’s complicated, but it’s important, so if you’re a Chelsea fan listen up.
“The Premier League clubs have today voted on a very significant new rule. The length of time with which a club can spread the cost of a transfer fee is going to be limited.
“Up until now, you can sign a player for 10 years, and you can spread the payment of that contract over 10 years. It’s called amortisation.
“From now, you’re only going to be able to spread the cost across five years.
“Look at Mykhailo Mudryk, for example, who signed the longest contract in Premier League history, and he was signed for £88.5m. In old rules, because it was an eight-year contract, that fee would only cost Chelsea about £10m a year.
“Chelsea have used it carefully and cleverly. Crucially, this isn’t going to be backdated. Only players signed from now are affected.
“This brings the Premier League in line with UEFA rule, who already had this in place. It makes clubs more sustainable and reduces their risk.
“Nobody wanted to punish Chelsea here, which is why they’ve decided not to backdate. Crucially, it means Chelsea have had the advantage of putting these players on long contracts, but they won’t be allowed to do that again with new players.
“I don’t think it will have an impact on transfer fees. It’s just an accounting procedure. Clubs can account for the player they’ve signed. Clubs can still make longer deals, but accounting wise the cost can only be spread over five years.”
Olivia Martin is a dedicated sports journalist based in the UK. With a passion for various athletic disciplines, she covers everything from major league championships to local sports events, delivering up-to-the-minute updates and in-depth analysis.
