A British record fee for Enzo Fernandez would push the Blues’ season transfer spending above £500 million.
Chelsea Online News:
In their pursuit of Enzo Fernandez, Chelsea F.C. are willing to spend more than £500 million under new owners Todd Boehly and Clearlake.
According David Ornstein, Enzo Fernandez has been given permission to undergo a medical in Portugal. There is now heightened optimism that an agreement will be reached between #Chelsea and Benfica.
Fabrizio Romano: Discussions are still ongoing between Chelsea & Benfica for Enzo Fernández. The deal has NOT collapsed, as things stand. 🚨🔵 #CFC #DeadlineDay Chelsea are still trying. One to follow in the next hours.
Since last summer, Chelsea’s transfer spending has reached record levels, leaving many wondering how the club is able to spend so much money while adhering to Financial Fair Play (FFP) regulations. Under Premier League FFP rules, clubs can lose up to £105 million over a three-year period.
UEFA regulations are different and only permit a £53 million deficit over a three-year period. A soft wage cap was also introduced by UEFA, which limits the amount that can be spent on salaries, agent fees, and net transfer expenses to an initial 90% of revenue in 2023–2024. The following two seasons will see a decline in this percentage to 80% and then 70%.
The impact of the Covid pandemic on incomes has resulted in a loosening of regulations, and Chelsea’s most recent financial results showed losses of £387 million over three years. However, the Blues have also recently made a balance on player sales.
It will also be beneficial to find a way to reduce the cost of transfers over a long period of time. Mykhailo Mudryk’s £88.5 million signing will therefore be valued at almost £11 million per year for the duration of his eight and a half-year contract. Wesley Fofana, Benoit Badiashile, and Noni Madueke all signed contracts for seven years, six and a half years, and seven and a half years, respectively.
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Chelsea’s finances are being closely monitored by UEFA, but even if they do not make the Champions League next season, they are certain they will abide by FFP rules despite the scrutiny.
“They have amortised contracts over incredibly long-term deals, more than the standard five-years,” explains Jake Cohen, a sports lawyer for Mackrell Solicitors.
“Amortisation is a standard accounting practice in the sport that would see a transfer fee spread over the length of a player’s contract. A £50m transfer on a five-year deal wouldn’t be accounted for up front but would cost £10m a year.”
The new owners of Chelsea saw the need to upgrade the team and have spent more than most clubs in Europe combined.
In response to complaints from European corporate executives, UEFA is changing the FFP rules and limiting the amount of time a transfer cost can be spread to five years.
Under UK regulations, 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 modification won’t apply retrospectively. and will take effect during the summer.
Kieran Maguire, a football finance expert and the author of The Price Is Football, stated. “It has upset [Spain’s] La Liga and their director, Javier Tebas, is certainly one who is very angry. I think it has reinforced the view that the Premier League is the Super League.
“Getting in before the rules change happens in all walks of life. There’s nothing wrong with what they’re doing. It’s just they are doing it to a very extreme level that we’ve never seen in football, apart from when Roman Abramovich first arrived.
“It could work or you could be stuck with players on high wages and unwilling to leave.
“[Chelsea] are spending money like a drunk in a casino – it might still work because high risk can bring high rewards.”
