Premier League clubs have voted in favor of introducing a domestic financial fair play model from next season.
West Ham co-owner David Gold has confirmed that proposals to limit a club's losses were approved "overwhelmingly" at a meeting in London on Thursday afternoon.
The top-flight clubs also approved a cap on wage increases as the league supported the most far-reaching spending reforms since the boom that led to an influx of billionaire owners led by Chelsea's Roman Abramovich and Manchester City's Sheikh Mansour Bin Zayed Al Nahyan.
It is not yet known which clubs supported the new measures, but 14 of the 20 votes are required to push through reforms.
At the last full shareholders' meeting in November, Arsenal, Chelsea, Everton, Liverpool, Manchester United, Newcastle United, Norwich City, QPR, Reading, Southampton, Stoke City, Sunderland, Swansea City, Tottenham, West Ham and Wigan had all indicated that they were in favor of stricter financial regulation.
This came after four breakaway clubs – Arsenal, Liverpool, Manchester United and Tottenham – attempted a coup in a bid to push through a strict break-even rule."Over the past decade the Premier League has enjoyed unprecedented growth driven by the performance of the clubs and the strength of the competition," Premier League chief executive Richard Scudamore said in a league statement. "With that growth challenges have presented themselves, and it is of great credit to the clubs that they have always been alive to these challenges and adopted the appropriate governance measures when necessary.
"Today the clubs have voted in principle for new financial regulations that will further benefit the sustainable running of their businesses, while allowing secure owner investment, as well as enhance the reputation of the Premier League as an organisation that takes its responsibilities in the governance arena seriously."
Insiders say that the Premier League FFP system will be a more "sophisticated" version of UEFA's, which comes into force next season and limits owners to covering losses €45.5 million euros of losses over the first three years.'
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