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Thursday, March 30, 2023

Due to transactions involving Chelsea, Uefa will change the rules.

On Saturday, Mykhailo Mudryk entered the game for Chelsea as a substitute against Liverpool.

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 throughout 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 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.

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

How can Chelsea continue making transfers?

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 deal.

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 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 three years 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 three years. Any club that posts losses above that amount may be subject to sanctions, such as hefty fines or even a points deduction.

The goal of financial sustainability standards and FFP regulations is to ensure that clubs are not put at risk while the game is played.

As the governing body, Uefa believes it is responsible for making sure the game is handled in a way that prevents clubs from becoming overextended.

Clubs are limiting their ability to spend in the future by amortizing players over a longer period since their ue depreciates more gradually than it would ordinarily.

There is a perception that Chelsea is such a well-known example that if others choose to follow, they might get into problems.

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Financial Fair Play
Mykhailo Mudryk


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