The average length of contract at Chelsea is 76% higher than the Premier League average
One of the hallmarks of Chelsea’s transfer business thus far under the ownership of Todd Boehly and Clearlake Capital has been the length of the deals being handed out to new signings.
Chapter and verse has been written around Chelsea and amortisation in recent weeks. Amortisation, for those still unfamiliar with the term, is how the purchase of assets is accounted for on the balance sheet, in this case footballers. While transfer fees are not paid out on the same terms as they are amortised, for accounting purposes the cost of the guaranteed transfer fee is spread over the life of the contract.
Chelsea have broken the mould this year. If the transfer business works out and this is a side that goes on to dominance then Boehly and Clearlake will be seen as some kind of visionary geniuses. If they fail competitively then they face a lot of risk in terms of getting any underperforming players off their wage bill given they have effectively handed out contracts that cover the prime years of a player’s career.
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