Premier League clubs vote to limit transfer fee amortisation period to five years

Premier League clubs have voted to limit the transfer fee amortisation period to five years, according to The Athletic’s David Ornstein. 

The clubs voted in favour of the measure at a shareholders’ meeting on Tuesday. 

Clubs were previously allowed to spread the cost of a transfer fee over the duration of a player’s contract.

This meant they could sign players on long contracts and not suffer the impact of the transfer spending. 

For example, if a player signed for £50 million on a five-year contract, the transfer would cost the club £10m annually for the next five years.

The lack of legislation in this area allowed Chelsea to make several high-profile signings, which sparked criticism from many people.

The Blues signed Mykhailo Mudryk for £62m on an eight-and-a-half-year contract, while Enzo Fernandez joined them for a £106m fee on a deal until 2031. 

However, Premier League clubs have now voted in favour of a measure that will see contracts limited to a maximum of five years. 

Luckily for Chelsea, the rule change will not be backdated to include transfers that have already happened. 

Clubs in the English top-flight can lose a maximum of £105m over three years. 

Everton were found to have exceeded this limit by £19.5m, and they were deducted ten points as a punishment. 

The Toffees have appealed against the decision, but it is unlikely to be completely overturned.