The Premier League has confirmed a major rule change that will see transfers affected in terms of the amortisation costs. As per their new ruling, which was ruled on by all the shareholders, clubs will have a maximum of five years to pay the transfer fee for a player in spite of how long their contract is.
Which means, even though they may sign a six-year contract, the transfer fee will have to be cleared in five years at most. This rule was deemed necessary after Chelsea’s business over the past three transfer windows, where they decided to amortise their transfers over 7-8 years while bringing in players like Enzo Fernandez, Moises Caicedo, Mykhaylo Mudryk and more.
Premier League passes new five-year amortisation rule
The decision reportedly aligns with UEFA’s Financial Fair Play rules, and will prevent other Premier League clubs from following what Todd Boehly did over the past few windows. However, the rule change does not affect the payment plans and contracts that Chelsea have already agreed. As a result, Benfica will still receive the transfer fee for Enzo Fernandez over eight years.
The league body will also be able to prevent transfers for clubs if they owe debt to a fellow Premier League or EFL side. To register new players, they will have to clear their debts.
It will be interesting to see if Manchester City and Chelsea will also be hit with more punishment owing to the recent allegations against both clubs. However, no meetings or trials have taken place to address either situation yet.
