Financial controls for Premier League clubs

English Premier League clubs voted on Thursday to bring in new financial regulations in a bid to address over-spending.

The controls limit increases in players' wage bills and oblige clubs to restrict losses to £105 million ($162 million, 123 million euros) over a three-year period.

However, the clubs agreed that any profits made from player sales cannot form part of the spending restrictions on players' salaries.

Manchester City, Chelsea, Aston Villa and Liverpool have all reported losses over £105 million during the past three years, according to the most recently published accounts.

Premier League chief executive Richard Scudamore has said that clubs that flout the rules could face points deductions.

Former Arsenal vice-chairman David Dein urged the English football authorities to keep a close eye on the country's elite clubs to make sure they were not looking for loopholes.

"In my experience, clubs will do what they want to do. There's going to have to be a lot of vigilance to make sure people don't try to get around it," he said.

"This should lead to more stability and there should also still be the dream factor with clubs being able to come up through the lower divisions to the Premier League and win the league or the FA Cup."

The Premier League has also ratified the introduction of goal-line technology in time for the 2013-14 season.

 

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