Premier League clubs have voted in principle to introduce a spending cap from the 2025/26 season.
The rules, should they be approved in a final vote later this year, will replace the current Profit and Sustainability Rules (PSR) which have caused controversy in the Premier League this season.
Everton and Nottingham Forest were handed points deductions this season, which are still subject to appeal with a few weeks of the season to go, for breaching the current rules - causing top-flight clubs to reconsider the financial rules.
In a central London meeting on Monday, Premier League clubs put forward proposed new rules which included a spending cap on player wages, transfer fees and agent fees.
Sky Sports News chief reporter Kaveh Solhekol runs through the prospective new rules and what they mean for the Premier League clubs...
The details still need to be worked on but clubs not in Europe would be allowed to spend 85 per cent of their club revenue on squad costs. That involves wages for their players, amortised transfer fees and also agent fees.
The clubs that are in Europe would be allowed to spend a maximum of 70 per cent on squad costs. That is also in line with UEFA rules.
But what a lot of people have noticed is if you can only spend a maximum of 85 per cent of your revenue on your squad and you are a rich club, then you will always be able to spend more on your squad than the poorer clubs.
So what is the solution? There may also be 'anchoring' rules.
It's going to be something you're going to hear a lot about.
In its purest and simple form, it means all clubs would only be able to spend a maximum of the multiple of what the bottom club earns in TV revenue.
At the moment, the bottom club gets £103.6m. If the anchoring multiple,
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