Hello and welcome to the Chelsea news podcast with me your host jack and in todays episode we will be talking about the amortisation system that Chelsea Football Club have taken advantage of in the previous two transfer markets which has allowed them to sign such ridiculous numbers of players for such high fees. It has allowed Chelsea to spend numbers unheard of in the transfer market, fees that some may even call overinflated relative to the quality of player that we are buying. And perhaps, yes, but there is reasoning and a very distinct method to their madness.
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Okay, so Chelsea have been signing players left right and centre, and on extremely long contracts and a lot of people know that. However, a lot of people don’t understand why this is. Some may chalk it up to the players then spending their best years at Chelsea, others may say that it is so that the contract is cheaper or so that they don’t walk away on a free transfer. And while this may partially be true and a factor in why they have done this it is primarily the ammortisation way of paying for this which has driven Chelsea to structure their deals this way. Amortisation in football is the spreading of the players cost of value across the length of their contract, for example lets talk about Mykhailo Mudryk. For the numbers being somewhat nicer, lets say that he has signed for 80 million (ish). These numbers are slightly inflated potentially thanks to the media but we know that the fee not including bonuses is somewhere around there. And so thanks to him signing a contract that lasts for 8 years, the fee on the Chelsea financial books looks more like 10 million pounds a year, akin to what a 50 million pound player would look like on a more normal 5 year deal. Chelsea exploited this loophole a lot, allowing them to go on a shopping spree of Europe, hoovering up many of the biggest young stars across the continent. Enzo Fernandez, Mudryk, Madueke and many more all arrived for big prices but with even longer contracts.
Alas, now UEFA looks set to be closing this loophole forever with them limiting the length of a contract that a player can be offered to only 5 years, effectively rendering Chelsea’s current way of working not possible in future. This marks an end to Chelsea being able to spend such ridiculous amounts of money with little to no consequences after Chelsea were reported to UEFA by multiple clubs after their outgoings.
But perhaps this will benefit the club in the long term. The money was spent for the future and now this prevents other clubs from being able to rebuild as effectively and efficiently as Chelsea did this year. Chelsea made massive amounts of signings to the team that will help them in the long term and now that the loophole is closed before any other major European giant can take advantage of it then that gives Chelsea even more of a competitive advantage, and we certainly need it in our current state.
But what do you think, thanks for listening or reading to the Chelsea news podcast with me your host Jack and in todays episode we have talked about Chelsea Football Club’s ammortisation strategy, if you enjoyed don’t forget to go to my website (Thanks if you’re already here) as well as interacting with my YouTube video positively including liking and subscribing as it really helps me grow in the algorithm. Thanks, bye!
