Originally Posted by BBC Sport

Top flight in financial crackdown

Top flight clubs could face a transfer ban if they fail to adhere to new financial rules brought in by the Premier League on Monday.

Under the proposals the Premier League Board has the power to punish clubs who fail to meet certain criteria.

"The whole purpose of this is to protect the viability and sustainability of the clubs", said Premier League chief Richard Scudamore.

In addition, clubs have also agreed to new rules on "home grown" players.

From next season, each club will, at the end of every transfer window, have to name a squad of up to 25 players, at least eight of which will have to be "home grown" - registered for at least three seasons at an English or Welsh club between the ages of 16 and 21.

New Financial Requirments

Clubs must submit independently audited accounts to the Premier League by 1 March each year with requirements to note any material qualifications or issues raised by auditors.

Clubs must submit future financial information to the Premier League by 31 March each year as early warning for any club taking undue financial risk.

An annual requirement to demonstrate to the Premier League Board that a club does not have outstanding debts to other clubs.

An annual requirement to demonstrate to the Premier League Board that a club is not in debt with regard to income tax or National Insurance and payroll taxes.

Squads can be boosted beyond the 25 limit but only by players under the age of 21.

The Premier League's new financial rules are similar to Uefa's current licensing guidelines, but differ in that they are compulsory to clubs and punishment takes the form of sanctions as opposed to outright exclusion from competition.

Each club will have to provide its annual accounts to the Premier League by 1 March every year, and show that it does not have outstanding tax debts, or debts to other clubs.

Clubs will also have to prove they can fulfil all fixtures and contractual obligations, and meet all payments due during a season.

As well as denying clubs the right to acquire new players, the Premier League can also prevent them improving contracts with current players.

"It is absolutely essential that these clubs are run as viable, going concerns," said Scudamore. "We would far rather intervene than risk a club going into administration."

Earlier this month, Portsmouth chief executive Peter Storrie admitted that the club almost went into administration, having lived "way outside its means".

At the end of August, Sulaiman Al Fahim completed his takeover at Fratton Park but prior to that Pompey were forced to rely on other clubs, agents and the Inland Revenue agreeing to allow a delay on payments owed to them to keep the club afloat.

But the new rules do stop short of Uefa president Michel Platini's "Financial Fair Play" proposals, which are due to be approved by Uefa's Executive Committee this week.