Premier League clubs close loophole by limiting spread of transfer-fee costs to five years
LONDON (AP) — Premier League teams will only be able to spread the cost of players' transfer fees over a maximum period of five years, closing a loophole that has been exploited most notably by Chelsea over the last two years.
The clubs from England's top league voted for an amendment to the rule on amortization of player contracts at a shareholders’ meeting on Tuesday, bringing the league in line with regulations now followed by European governing body UEFA.
Chelsea, in particular, has given players such as Moises Caicedo, Mykhailo Mudryk and Enzo Fernandez contracts of up to eight-and-a-half years so the club could spread the huge costs of their transfers over the full length of the deal. It was regarded as an innovative way of complying with financial rules.
UEFA moved in June to limit the amortization period to five years, regardless of the length of the contract, and the Premier League has followed suit.
The amendment will only apply to future transfers, and will not be backdated.
The league said it also has approved a rule amendment to enable its board to stop a club registering more players until an outstanding payment has been made to another team in England’s top four divisions.
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