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Soccer

Report: UEFA to close FFP loophole in wake of Chelsea's long-term deals

UEFA is planning on closing the loophole that’s allowed Chelsea to circumvent financial fair play (FFP) rules numerous times since last summer.

The European governing body will impose a five-year limit for the maximum length of time a transfer fee can be spread over after a number of concerned teams contacted UEFA about Chelsea’s transfer policy in January, reports Martyn Ziegler of The Times.

That means that deals such as the amortized eight-and-a-half-year contract that Ukrainian winger Mykhailo Mudryk signed when he joined Chelsea last week will be prohibited in the future.

Using amortization – the act of writing off the initial cost of a player – to complete the lucrative transfer allowed the Premier League team to record Mudryk’s £80-million transfer fee as £9.41 million per year for UEFA’s FFP calculation. Had the Blues signed Mudryk to a four-year deal, his fee would’ve been recorded as £20 million per year.

“If other clubs start doing the same with eight-year contracts, it will be a mess, so we need to protect them,” a source told Ziegler about UEFA’s thought process for closing the FFP loophole.

“It is simply shifting a problem to the future. Either a club can get stuck with a player on a high salary that they cannot sell, or if they sell him after three or four years, they will not realize much profit (in accounting terms) because a lot of his transfer fee has not been amortized.”

Chelsea have used amortization in a number of other deals since the club began its over £400-million spending spree last summer. Players such as Wesley Fofana, David Datro Fofana, and Benoit Badiashile have signed contracts in excess of six years.

“If you think about it, I've never held a job in my life. I went from being an NFL player to a coach to a broadcaster. I haven't worked a day in my life.”
-John Madden


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