Premier League teams agreed Friday to introduce spending caps in England's top flight from next season.

Clubs' on-field spending will be restricted to 85% of their soccer revenue and net profit or loss on player sales. There will also be an allowance of an extra 30% -- but if clubs exceed that limit, they face a points deduction.

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English soccer's top clubs voted to implement the new “Squad Cost Ratio” (SCR) and “Sustainability and Systemic Resilience” (SSR) financial rules. They replace the “Profitability and Sustainability Rules” (PSR), which resulted in points deductions for Everton and Nottingham Forest in recent years.

The League said the new regulations were more closely aligned to those used by European soccer's governing body

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