MANCHESTER: The executive committee of the Union of European Football Associations (Uefa) has approved new "sustainability regulations" to replace the previous Financial Fair Play system, Uefa President Aleksander Ceferin said on Thursday.
A new "squad cost rule" will limit spending on wages, transfers and agent fees to 70% of a club's revenue -- with that figure reached after a three-year gradual change.
"Uefa's first financial regulations, introduced in 2010, served its primary purpose," Ceferin said 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 (US$32.74 million) over three years to €60 million over the same period.
The new regulations will come into force in June 2022, with a gradual implementation over three years so clubs have time to adapt.
Uefa President Aleksander Ceferin attends a press conference following its executive meeting on Thursday in Nyon, Switzerland. (Photo: AFP)