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The Premier League says its clubs will be punished with a points deduction if they breach new spending controls.Each team will not be allowed to make a total loss of more than £105m over the next three seasons and must limit their player wage bills from next season.
"If people break the £105m we will look for the top-end ultimate sanction range - a points deduction," said Premier League boss Richard Scudamore.
The rules are designed to improve the financial sustainability of clubs.
Investment in areas such as stadia and academies will be exempt.
The aim is a 'break even' model similar to the Financial Fair Play regulations introduced by Uefa for sides in European competitions. The FFP allows only a £38m (45m euros) loss - significantly less than the Premier League's new limit of £105m between 2013 and 2016. bbcsport
