Football clubs across Europe will no longer be able to spend more than they generate in revenue as part of new regulations designed to ensure the sport's financial sustainability.

UEFA's Financial Fair Play concept - approved by the governing body's executive committee on 27 May - will force clubs to balance their books and operate within their means. The new regulations, which will come into effect for financial documents for a reporting period ending 2012, also aim to reduce transfer fees and salaries, as well as promote long-term youth development.

Clubs that fail to fulfil the 'break-even' requirements once the regulations come into effect could incur initial sanctions during the 2013-14 season, based on financial information from the previous two seasons. UEFA general secretary Gianni Infantino said: "The financial crisis has helped people become more concerned that something needs to be done - the spiral has to stop.

"Everyone understands that it is necessary. After in-depth discussions, the executive committee approved the financial fair play regulations unanimously." According to a UEFA survey of more than 650 clubs, more than 50 per cent were making losses each year, while 20 per cent were spending 120 per cent of their revenue.

The Football Association and Premier League have expressed their commitment to support UEFA's measures and said that the "vast majority" of the proposals fall into line with existing Englis regulations. A joint statement said: "We recognise the difficult task undertaken by Uefa in this process and we have asked that certain issues be monitored so as to ensure these rules do not create unintended consequences such as preventing smaller clubs from having the opportunity to invest the resources required to compete at a higher level."