Premier League clubs agree to a five-year cap on the amortisation of transfer fees

The Premier League announced Tuesday that clubs had voted to limit how long a player’s fee can be spread over their accounts.

Prior to this, clubs were able to amortize the cost of transfer fees over the entire length of the contract.

The Premier League said that its shareholders had agreed to amend their rule regarding the amortisation costs of player registration to align it with UEFA regulations.

All new contracts or extensions will be limited to a maximum of five years.

Amortisation is a popular strategy among Premier League clubs. However, Chelsea has recently signed players to eight-year contracts and beyond, giving them an extended period of time in which they may write off transfer fees.

This allowed clubs around Premier League Financial Fair Play Regulations, which allow clubs to lose up to 105 million pounds (131.76 millions) in a period of three years.

Chelsea was one of the 15 clubs that voted for a change to the amortisation rules. The rule will no longer be retroactive, and will therefore not include contracts already signed.

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