Clubs are permitted to spend up to 5 million euros (£4.4 million) over the course of three years, according to current Uefa regulations
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 presenting 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 amortized over a period of five years, according to Uefa.
Under UK standards, clubs will still be able to offer lengthier contracts, but they will not be able to extend transfer fees over the first five years. Benoit Badiashile of France and David Datro Fofana of the Ivory Coast both signed six-and-a-half-year contracts with Chelsea earlier this month. Noni Madueke followed Ukraine winger Mudryk to Chelsea and signed a seven-and-a-half-year agreement.
Wesley Fofana, a defender, signed a seven-year contract to join Stamford Bridge, and left-back Marc Cucurella signed a six-year deal in the summer. Deal with Raheem Sterling 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 signing brought their total spending since last summer close to £450 million. The Blues must abide by two sets of rules: the profit and sustainability standards of the Premier League and, because they frequently compete in European competition, the FFP restrictions 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 above this amount up to a cap of 30 million euros (£26.6 million) if the club’s owner covers the entire cost.
Clubs who violate these criteria might face a variety of sanctions from warnings to fines and possibly the loss of European championships, according to the regulating body.
Although permissible 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 laws will be implemented gradually, with the percentage set at 90% of income 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.