UEFA announce licensing, implementation of new financial rules

The UEFA Executive Committee approved new club licensing and financial sustainability regulations on Thursday.

"The regulation limits spending on wages, transfers, and agent fees to 70% of club revenue. Assessments will be performed on a timely basis and breaches will result in pre-defined financial penalties and sporting measures," according to a statement released after a special committee meeting in Switzerland.

European football's governing body noted the regulations are the first major reform of finance regulations since being introduced in 2010.

UEFA said acceptable losses would double from €30 million ($32.7 million) to €60 million ($65.4 million) over a three-year period but "requirements to ensure the fair value of transactions, to improve the clubs' balance sheet, and to reduce debts have been significantly strengthened."

UEFA added that the new regulations would take effect in June and would be implemented gradually over three years to allow clubs to adapt.