UEFA has brought in new financial regulations which will limit clubs’ spending on wages, transfers and agents’ fees to 70% of their revenue, the BBC reports.
Permitted losses over a three-year period have also risen from 30m euros to 60m euros.
The new rules will come into force in June and clubs will have three years to implement them.
UEFA said “breaches will result in pre-defined financial penalties and sporting measures.”
It is thought new reinforced punishments, including points deductions, demotion to lower-ranking competitions and potential exclusion from European football completely, will be introduced as part of the new regulations.
Clubs are expected to be allowed to spend 90% of their income in 2023-24, reducing to 80% in 2024-25 and 70% a year later.
The new “financial sustainability regulations” have been put together by UEFA and the influential European Clubs Association (ECA) and “are the first major reform” of the financial fair play (FFP) rules introduced in 2010.
