Chelsea have handed extremely long-term deals to their players, with the likes of Enzo Fernandez and Mykhaylo Mudryk signing through to 2031.
The contracts were given to spread the cost of their transfers over the years, as well as to protect the youngsters' future for the long term.
Gary Neville insists that Chelsea's policy is not justified as it negatively affects the development of the youngsters.
"They need good, experienced signings, they can't be going down the route of eight-year signings," the Englishman said on his podcast, as quoted by the Daily Mail.
"The money is big as well and you think you've got an eight-year contract as a young 21 or 22-year-old, the club might think they've got security over you but the young player thinks: 'I am rich, I genuinely am rich.'
"For some that's a problem, it just affects their mindset. What is the motivation? You do sometimes think, after a year or eight months, 'I need to fight for that new contract, I've only got three years left or two years left.' They've got seven years left some of them! Those contracts are mad in every single way.
"Forget FFP and all that stuff that went on, forget the fact that if they make a mistake, you're stuck with them for a long time. Just for the young player themselves, to think they have that comfort."
During his time at Man United, the former full-back actually signed a seven-year contract. But his situation was different to Chelsea's, he insists.
"I say that, I once signed a seven-year deal when I was 24. But I was as solid as a rock," Neville added. "He [Alex Ferguson] would have got rid of me after 10 minutes, forget the seven-year contract! He'd have thrown me out the door, he had control."
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