Can Liverpool Compete After Closing of Chelsea’s £600M Transfer Loophole?
Football Sports

Can Liverpool Compete After Closing of Chelsea’s £600M Transfer Loophole?

UEFA have tightened transfer regulations in an act to close the loophole which was heavily exploited by Liverpool’s Premier League rivals over the past 12 months.

The UEFA executive committee convened in Nyon, Switzerland on Wednesday to pass amendments relating to how clubs account for transfer acquisitions using the tactic of amortisation.

Chelsea had particularly taken advantage of this method during their first two transfer windows under the new ownership of Todd Boehly and Clearlake Capital. The Blues splurged an unprecedented £600 million on highly touted players like Raheem Sterling, Enzo Fernandez, Mykhailo Mudryk, Wesley Fofana and Noni Madueke.

In order to lower the annual costs associated with these transfers for accounting purposes, Chelsea revealed guaranteed sums through extensive contracts ranging up to nine years.

For example, a £70 million deal spanned over five years would be listed as an annual fee of £14 million, which is a significantly lower sum than if spread over nine years (annual fee of £7.8 million).

UEFA’s decision to close this transfer loophole permanently reflects their commitment to fairness in the football ecosystem.

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