We've know that this was coming for some time, but today it became official. The Premier League clubs have voted to adopt their own version of FFP, and that rule will go into effect beginning next season.
The full details of the new rule have not yet been released, but some or the basics are being reported by Sky Sports. Here's what they are telling us today:
The plans promise two significant controls; to limit players' wage bills from next season and longer-term measures that will restrict the amount of losses clubs can make to £105million over three years.
Clubs whose total wage bill is more than £52m will only be allowed to increase their wages by £4m per season for the next three years, but the cap does not cover extra money coming in from increases in commercial or matchday income.
The ceiling when the wage increase restrictions kick in will be £52m next season, £56m the following year and £60m in 2015-16.
This new rule will obviously have a major impact on the way Premier league clubs do business going forward, so we'll dig into the details of the new regulations when they are made public. For now though, it's probably enough to be aware that overspending will have consequences.
The clubs also voted to adopt goal-line technology today, and the system will reportedly be in place for next August's Community Shield. While this will likely come into play only a handful of times each season, it's nice to see that football is finally beginning to accept that technology has a place in the game.
Update: Paul Kelso has a bit more on the FFP vote. It's interesting that aside from Manchester City, all of the opposition to the rule came from some of the smaller clubs in the league. That should really tell us something about who this might hurt...
Bit of detail on Prem vote for financial regulation. 14 in favour, 5 against, 1 abstention (Swansea) WBA, Fulham, MCFC, AVFC & Soton opposed— Paul Kelso (@pkelso) April 11, 2013