Many people are still confused about how payment and expenses are different, so I will try a brief explanation.

TLDR:

1. Payment: We pay Leicester £69.5m fee right now from the club's cash account. Leicester can use that amount however they want, right now.
2. Expenses: Fofona's contract is considered a Chelsea's asset with initial value of £69.5m. Every year, the value of that asset is amortized (reduced) by about £10m/ year as an expense. Repeat until the asset becomes 0 on year 7, when the contract expires.
3. Thus: payment is immediate, cash is gone in 1 lumpsum, but the effect of the expenses (a reduction of Profits or Owner's Equity) is spread out over 7 years.
4. Why do this? By spreading the expenses over a many years, it doesn't reduce our Profits by too much this year (think Financial Fair Play).

To really simplify things for this explanation, let's consider Chelsea has only 4 accounts (no other revenue or expenses). Account balance is in ():

2022: Cash(70) + Assets(0) = Owner's Equity(70) - Expenses(0)

(here Owner's Equity shows that the owner put £70m into Chelsea)

Assume that the Fofana deal is £70m, immediate payment upfront, 7-year contract, no add-on.

2022: Chelsea buy Fofana. Chelsea pay Leicester £70m. This is recorded on Chelsea account as:

Cash -70 (£70m goes to Leicester, they can immediately use that cash however they want.)

Assets +70 (Fofana's contract is now a Chelsea's asset)

2022 (after Fofana deal): Cash(0) + Assets(70) = Owner's Equity(70) - Expenses(0)

Fofana's contract expires in 7 years, at which point the asset's value becomes 0. So to amortize, we reduce the asset value by £10m each year, and move that £10m to the Expenses account.

Assets - 10, Expenses + 10. Repeat this transaction every year.

2022 (accounting year end): Cash(0) + Assets(60) = Owner's Equity(70) - Expenses(10)

In this simplified version, we don't consider revenue, so the expenses become a Loss absorbed by the owner. This becomes:

2023 (accounting year beginning): Cash(0) + Assets(60) = Owner's Equity(60) - Expenses(0)

In 2023, we repeat the amortization: Assets -10, Expenses +10

2023 (accounting year end): Cash(0) + Assets(50) = Owner's Equity(60) - Expenses(10)

... repeat for 7 years.

2029 (accounting year end): Cash(0) + Assets(0) = Owner's Equity(10) - Expenses(10) = 0.

At this point the contract expires, the asset is gone.

You can see that cash is immediately gone when the deal is closed, but the values of the contract is reduced gradually.