The new FFP rules that will directly impact Manchester United and Man City

European football governing body UEFA have approved new spending rules that will replace the current Financial Fair Play (FFP) regulations.

Currently, clubs are allowed to spend up to £4.1million more than they earn during every three-year assessment period, but are allowed to exceed that figure by £24.9m if it is entirely covered by their owner. Under the new Financial Sustainability Regulations, clubs will be limited to spending 70 per cent of their revenue in a calendar year on wages, transfers and agents' fees.

Last week, figures revealed that Manchester City spent £35m on agent fees between February 2, 2021, and January 31, 2022, more during that time than any other Premier League club. Manchester United, meanwhile, spent just over £29m over the same period, the second-most in the league.

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UEFA understand that it will take clubs time to adapt to these rules and they will be eased into abiding by them, so much so that they will be allowed to spend 90% of their income in 2023, reduced by ten per cent in 2024. The 70% cap will come into force in 2025.

The plans, which have been established with the help of the European Clubs Association (ECA), will also double the permitted losses over a three-year period from £24.9m to £49.9m. Assessments will be performed on a timely basis and breaches of the rules will result in pre-defined financial penalties and sporting measures.

On the changes that are to be implemented, UEFA president Aleksander Ceferin said: "UEFA's first financial regulations, introduced in 2010, served its primary purpose. They helped pull European football finances back from the brink and revolutionised how European football clubs are run.