UEFA plans change to Financial Fair Play rules after Chelsea’s recent transfer activities

In response to Chelsea's recent practice of acquiring players on long-term contracts, UEFA will alter its Financial Fair Play regulations.

Chelsea can spread the player’s transfer fee over the course of extended contracts when submitting their annual financial reports.

Mykhailo Mudryk’s eight and a half-year contract will be worth £11 million a year, which makes him an £89 million signing.

A transfer fee may only be spread over a period of five years, according to UEFA.

Under UK regulations, clubs will still be able to offer longer contracts, but they will not be able to extend transfer fees past the first five years.

The new FFP regulations won’t be immediate and will take effect in the summer.

France’s Benoit Badiashile and David Datro Fofana of the Ivory Coast both signed six-and-a-half-year contracts with Chelsea earlier this month. Noni Madueke also joined Chelsea and signed a seven-and-a-half-year deal.

Wesley Fofana, signed a seven-year contract to join Stamford Bridge, and left-back Marc Cucurella signed a six-year deal in the summer. While Raheem Sterling’s deal is for five years.

Due to the lengthy contracts of the players, Chelsea will be able to stay within the rules even after the Madueke transfer brought their total spending since last summer close to £450 million.

The Blues must abide by two sets of rules: the profit and sustainability rules of the Premier League and, because they frequently compete in European competition, the FFP rules of UEFA.

Clubs are permitted to spend up to 5 million euros (£4.4 million) over the course of three years, according to current Uefa regulations. They may go over this amount up to a cap of 30 million euros (£26.6 million), provided the club’s owner covers the entire cost.

Clubs who violate these rules could face a variety of sanctions from warnings to fines and even the loss of European championships, according to the governing body.

Although permitted losses over a three-year period have increased to 60 million euros (£49.96 million), new Uefa rules put a cap on clubs’ spending on wages, transfers, and agent fees at 70% of their revenue.

The regulations will be implemented gradually, with the percentage set at 90% of revenue in 2023–2024, 80% in 2025–2026, and then 70% in 2026–2027.

The Premier League’s unique rules permit cumulative losses of £105 million over a three-year span. Any club that posts losses above that amount may be subject to sanctions, such as hefty fines or even a points deduction.

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