London, Feb 8 (ANI): The English Premier League clubs could face deduction of points if they fail to comply with the new financial regulations, which were approved by the members after narrowly winning the decision with 13 votes against six, as relegation-threatened Reading opted to stay out from the important ballot.
Under the new rules, points will be deducted from clubs if they do not obey the new financial regulations that will control the amount spent on player fees and will limit club losses to 105 million pounds over a three-year period, the Telegraph reports.
According to Premier League chief executive Richard Scudamore, the rules are intended to control fees inflation and encourage greater stability among club owners.
Scudamore added that spending on infrastructure and youth development will be exempt from the calculations.
Clubs whose total wage bill is more than 52 million pounds will be able to increase spending only by four million pounds per season for the next three years, though the control does not apply to extra money earned from commercial or match-day income.
The new rules should also slow the speed of wage inflation, which club owners were keen to agree on as they prepare to bank the proceeds of a new 5.5 billion pound broadcast deal.
However, the new regulations cannot prevent the majority of owners from making significant losses in order to try to compete with the biggest clubs.
There was opposition against the new rules from West Bromwich Albion, Swansea,
Southampton, Manchester City, Aston Villa and Fulham who have voted against the decision.
Reading's abstention was because of the club's new owner Anton Zingarevich.
The regulations are much more liberal than the financial fair play rules imposed by UEFA, with which clubs in European competition already have to comply. (ANI)