UEFA financial regulations will restrict clubs' spending on squads to 70% of their revenue

New financial regulations imposed by UEFA will limit the way clubs are able to spend on their squads. From June, expenditure in areas including wages, transfers and agents' fees will only be able to add up to 70% of a club’s revenue.

Ad/> Although, a three year grace period is being given to allow for the implementation of the rules. TransfersFabio Carvalho move to Liverpool from Fulham is 'close' — reportAN HOUR AGO Currently, the Financial Fair Play rules allow clubs to spend up to €5m more than they earn during a three-year assessment period.

UEFA president Aleksander Ceferin said: “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.” «These regulations will help us protect the game and prepare it for any potential future shock, while encouraging rational investments and building a more sustainable future for the game.» /> “Pre-defined financial penalties and sporting measures” have been promised by European football’s governing body, should the rules be breached. These punishments are expected to include points deductions, demotion to lower-ranking competitions and exclusion from European football altogether.

Achieving financial sustainability in the game is the key objective of the change, with this being the first major reform of the financial regulations since their introduction in 2010. Ceferin says the initial ideas served their “primary purpose”, as “they helped pull European football finances back from the brink and revolutionised how European football clubs are run.” It has also been announced that the permitted losses for clubs over a three-year period have risen from €30m to