Everyone in the footballing world either debates or applauds Chelsea cunning and apparent avoidance of Financial Fair Play regulations, explained how did they not breach the FFP rules
What was the loophole that Chelsea cracked?
According to reports, the Blues were able to spread out payments so they could pay more for more talent than they might have been permitted to do otherwise. This in turn has encouraged UEFA to consider changing its stance. With all of this, the question is: “How have Chelsea been able to spend such absurd sums of money to sign so many at such expensive rates than possibly they would have been allowed to?”
Explained how did Chelsea embark on spending spree without being in breach of FFP rules and getting a ban
Amortization is the solution. In relation to football, amortisation is the distribution of transfer fee payments. So, for instance, Chelsea signs a player to a five-year deal worth $50,000,000, or $50,000 each week. CFC would be required to pay 2.6M in salary and 10M in transfer fees each season. These figures would be utilised in FFP calculations and represent the 12.6M that would be spent on this player each season.
Boehly’s team was clever enough to exploit this gap in the Financial Fair Play regulations by offering longer-term contracts to its new hires. At least, that is what the stories would have you believe.
Can you just believe this?
After being given an eight-and-a-half-year contract, Mykhailo Mudryk signed the contract with the longest term in the Premier League’s 30-year history. The West Londoners employed the same method to sign Benoit Badiashile, who signed a seven-and-a-half-year contract, and David Datro Fofana, who signed a six-and-a-half-year contract. Chelsea also used a similar strategy in the summer when they gave Wesley Fofana and Marc Cucurella contracts for seven and six years, respectively.
This is how Chelsea has dominated the last two transfer windows, surpassing every other team. The officials at the body that governs European football have received complaints from clubs unhappy with CFC’s policy because of the organization’s expenditure, and they now intend to establish a five-year limit on how long a player’s transfer cost may be spread out over.
However, only before the summer transfer window can this be put into practice. Chelsea has decided to take full advantage of this opening while it still exists as a result of this.