On Thursday, April 7, UEFA replaced the existing Financial Fair Play (FFP) rules with new licensing and sustainability regulations.
The new financial sustainability regulations are based on three pillars; the No Overdue Payment Rule, the Football Earnings Rule and Squad Cost Rule.
The No Overpayment Rule means that club's accounts will be checked every quarter to make sure all bills are paid on time.
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The Football Earnings Rule will allow clubs to lose Ksh7.5 billion (€60m) over three years - double what was permitted under Financial Fair Play.
The Squad Cost Rule means that clubs will be forced to limit spending on players and staff wages, transfers and agents fees to 70 per cent of total revenues by 2025/26.
UEFA will impose pre-agreed financial and sports penalties on clubs that break the rules.
Among the punishments the clubs may face include being prohibited from using specific players signed during a year of evaluation and may be forced to play with a smaller team.
Another penalty include being deducted points.
Clubs might also be handed relegation as a sanction, however, this is still under discussion awaiting approval.
These new rules will come into play from June 2022, but will be implemented gradually over three years to give clubs time to adapt.
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