Uefa to prevent clubs spreading cost of transfers with lengthy contracts

Chelsea and other European clubs will no longer be able to spread a transfer fee across more than five years of a player’s initial contract after Uefa closed a loophole in its regulations.

The Blues have signed a number of players on lengthy deals over the last two transfer windows, including handing eight-and-a-half-year contracts to Enzo Fernandez and Mykhailo Mudryk in January.

The transfer fees are then spread evenly over the course of that contract, meaning the longer it is, the smaller the annual payments recorded on the club’s accounts.

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.

Amendments to the UEFA club licensing and financial sustainability regulations from 1 July 2023.Details: ⬇️

— UEFA (@UEFA) June 28, 2023

There is still nothing in the rules – which come into force from July 1st – preventing a club from spreading the cost by extending a contract, but for amortisation purposes that extension itself could not be for more than five years either.

Clubs can still sign players to longer contracts if their national associations allow it, but the cost of the transfer fee must be amortised over the first five years unless the contract is extended.

Uefa said the new regulations would not apply to deals already done, but would “ensure equal treatment of all clubs and improve financial sustainability”.

European football’s governing body has also moved to prevent clubs colluding to inflate the value of players for accounting purposes.

This follows the capital gains scandal involving clubs in Italy, which led to the entire Juventus board resigning in November last year.

Clubs must assess whether a transaction