Football League Clubs will be subject to a transfer embargo if they fall behind on their tax payments.
Clubs voted to accept the new regulations at the Football League’s Annual General Meeting.
Under the new system Clubs will not be able to deal in the transfer market until their debt is cleared.
League Chairman Lord Brian Mawhinney said:
“This new regime will provide us with an early warning system where clubs are facing financial problems, it is only right we do not permit Clubs that are unable to meet the costs associated with their existing playing staff to make further new player commitments.”
The regulations have been introduced in an attempt to make Clubs more prudent and to ensure they comply with all employee related payments to Her Majesty’s Revenue & Customs (HMRC).
The new system should also impact on a Club’s ability to come out of administration without incurring additional points penalties.
“More importantly, football generally needs to develop a culture of paying its debts rather than putting them off for another day. This will help our clubs to become more financially sustainable in the longer term.”
Clubs have also approved a proposal from Derby County to increase the number of substitutes for Coca-Cola Football League matches to seven (from the current five), of which three may enter the field of play.