New rules to be voted on by the main
Premier League board in April.
English Premier League clubs have decided to respond positively to growing concerns about spiralling wage costs by agreeing to impose spending controls.
UEFA had warned on the 4th of February last that the continued failure to control player’s salaries, some of which have risen 40 per cent at leading European clubs in five years, was endangering the future of football on the continent.
The Premier League has indicated that it is keen to ensure the huge revenue, expected to be in excess of £5 billion, which will be generated by a new three-year television rights deal isn't squandered away by clubs.
West Ham co-chairman David Gold is quoted as saying that the majority of clubs agreed to adopt a restraint on wage increases.
The exact details of the rules, which will be voted on by the main Premier League board in April have yet to be released.
Gold confirmed the main regulation was a "restraint on overspending."
He was referring to the fact that if clubs increase their revenue it allows them to increase their spending as well.
The backdrop to this is the financial meltdown at Portsmouth, which became the first Premier League club to enter bankruptcy protection in 2010.
The rules are designed to prevent a repeat of this.
From now on Premier League clubs which compete in European competitions will have to abide by the financial fair play rules introduced by UEFA to eventually make teams break even on their football-related business.
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