Premier League Clubs Vote For Five-Year Maximum Player Contracts


Stopping clubs buying a player for £10 million on a 10 year contract and only paying £1 million a year, now they would have to pay it within 5 years
I’m making a boring point but amortisation is non-cash. Unlikely to do with payment terms - it’s about matching value to the life of the asset, which is now maxed out at 5 years.
Example - £5m up front, 5 year deal - your cash out the door is £5m on day 1 but amortisation is £1m per year for 5 years.
Example 2 - 2.5m up front, 2.5m after 12 months committed. Amortisation is still £1m a year for 5 years.
 

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