Top European clubs will be limited to spending no more than 70% of their revenue on their squads under new “sustainability regulations” passed by UEFA’s executive committee on Thursday.
According to Reuters, the new approach will replace the previous Financial Fair Play system and introduces a “squad cost rule” that will limit spending on wages, transfers and agent fees.
The 70% figure will be reached after a three year transition period, gradually falling from 90%.
“UEFA’s first financial regulations, introduced in 2010, served its primary purpose,” Reuters quoted UEFA president Aleksander Ceferin as saying at the Executive Committee meeting in Nyon.
“They helped pull European football finances back from the brink and revolutionised how European football clubs are run. However, the evolution of the football industry, alongside the inevitable financial effects of the pandemic, has shown the need for wholesale reform and new financial sustainability regulations.”
UEFA added that acceptable losses will double from 30 million euros over three years to 60 million euros over the same period.
The new regulations will come into force in June 2022.