Under UEFA president Michel Platini's "Financial Fair Play" plan, clubs will not be able to spend more than they generate through revenues and cash injections from rich benefactors will be severely restricted.

Those who fail to comply could ultimately be barred from entering European competition.

"The new financial fair play regulations were finally approved unanimously," UEFA general secretary Gianni Infantino said after an executive committee meeting.

"The main rule is the break-even requirement which will be phased in over the next three years.

"It is not as easy to swallow for everyone but everyone understands it is necessary.

"They are there not to punish clubs, they are there to help clubs. We don't want to kill anyone, this is why we have a phased-in approach."

Clubs will be allowed some leeway as money invested in stadiums and youth development will not count when auditing their accounts, UEFA said.

However, they will not be permitted to owe any money to other clubs, employees or tax and social service authorities at the end of the season.

Earlier this year, Infantino said 50 per cent of European clubs were running at a loss with 20 per cent showing serious deficits.

He said clubs could still spend large amounts on transfer fees if they had enough revenue.

"If clubs want to spend 50, 60 or 70 million (euros), why not, provided they have the money coming from their revenues, this will continue in the future," he said.

"The problem is when you don't have the money."

The European Clubs' Association said it welcomed the plan.

"This is really a huge achievement," ECA president Karl-Heinz Rummenigge said in a statement. "The measures will shape the future of European football into a more responsible business and ultimately a more sustainable one."

UEFA said the system would be phased in and the first time a club could be theoretically banned is 2014/15.
Reuters