UEFA will rid of the Financial Fair Play (FFP) system after new rules were approved by Europe's governing body.
The changes came about on Thursday at UEFA’s Executive Committee meeting in Nyon, Switzerland and will be known as the Financial Sustainability and Club Licensing Regulations (FSCLR). FFP was introduced in 2010 and was a way of curbing excessive spending that saw clubs operate beyond their means.
They have been heavily criticised over the past decade but the new rules centre around "three pillars" which are solvency, stability and cost control. The latter is what the FSCLR calls the “squad cost rule”. It means a club's outlay on transfers, wages and agent fees cannot exceed 70 per cent of its revenue.
