Chelsea are set for a tense Premier League shareholders meeting today, with their rivals set to push for a cap on contract amortisation rules, according to reports.
The Blues have spent £1bn since Todd Boehly arrived at the club, but have managed to adhere to Financial Fair Play (FFP) rules by handing a number of their players long-term contracts of up to eight years to spread the cost across a longer period.
UEFA closed this loophole in June by introducing a five-year limit for the spread of transfer fees, but confirmed that long-term contracts that had already been signed would not be affected.
Top flight teams are keen for the Premier League to follow UEFA’s lead and put their own five-year limit on contract amortisation, and will push for the change to be made at today’s meeting, as reported by The Telegraph.
Their report claims some clubs are keen for the rule change, if voted through, to be backdated to the summer, which could spell trouble for Chelsea.
Todd Boehly’s Chelsea have adhered to FFP rules by spreading the cost of transfer fees across a longer period after handing a number of their players lengthy contracts
The Blues spent in excess of £400m over the summer, bringing in Moises Caicedo from Brighton for a British record £115m fee, while they also splashed the cash on the likes of Cole Palmer, Nicolas Jackson and Romeo Lavia.
All of these players have signed deals until 2030 or 2031, spreading the cost of the transfers across seven or eight years.
In Caicedo’s case, it means his fee has been amortised at £14.4m-a-year across his eight-year contract, but Chelsea’s rivals want this type of deal to no longer be possible.
Clubs are only permitted to lose £105m across a three-year period, which has been extended to four years due to Covid, under the Premier League’s profit and sustainability rules.
Everton were found guilty of breaching these rules last month and were handed a 10-point deduction, which they have since appealed.
Chelsea could be the next club at risk of breaking the rules, particularly if the rule change is voted through and backdated.
Chelsea spent £115m on Moises Caicedo (pictured), but have spread his fee across an eight-year period. Chelsea’s rivals want this type of deal to no longer be possible
The Blues also handed Nicolas Jackson (pictured) a long-term deal, but the striker has failed to deliver at Stamford Bridge so far
It is not clear whether a vote will take place today or if the matter will simply be discussed and potentially voted on in the future.
If a vote goes ahead, it will need 14 clubs to approve the change for it to be given the green light.
This could be the second key vote at a shareholders meeting in the space of a month.
Eight clubs blocked the proposed temporary ban on related-party loans, meaning Saudi-owned Newcastle will be allowed to loan players from Saudi Arabia in January.
