Uefa will make proposals next month to replace its financial fair play rules with a salary cap and a luxury tax by next year.
Under the planned system, clubs in European competition would be limited to spending a fixed percentage of their income – possibly 70 percent – on salaries. Any club that violates the cap would have to pay a luxury tax where the equivalent or more of the overspending would go into one pot to be redistributed.
This would replace the FFP rules introduced 11 years ago which say clubs must break even over a three year period.
The proposals will be presented at a congress on the future of European football that UEFA is hosting next month in Switzerland.