UEFA on Wednesday, June 28, 2023, announced changes to their Financial Fair Play (FFP) rules.
The new laws will prevent a repeat of Chelsea’s massive spending spree.
It will also demand closer analysis of capital gains after the Juventus scandal.
Other items on the agenda were adjustments to various competitions, including renaming the Europa Conference League to the Conference League.
UEFA has introduced a limit of five years, even if the contract is longer, in a bid to stop Chelsea’s tactic of signing new squad members to very long contracts to enable them spread the amortisation.
FFP is also changing the squad cost ratio, so that a club’s spending on salaries, transfers and commissions cannot go beyond 70% of the club’s revenue.
That will only be in full swing by 2025/2026 season, as it will be introduced gradually starting at 90% in 2023/2024 and 80% in 2024/2025.
UEFA has also urged clubs to stick to “international accounting principles” while calculating capital gains.
This comes after Juventus were deducted 10 points in Serie A for artificially inflating transfer fees to boost capital gains.