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

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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. 

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