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 By PA Sport

UEFA lifts Man City and PSG spending restrictions after FFP targets met

Manchester City and Paris Saint-Germain have had their restrictions on transfer spending and Champions League squad size lifted after meeting their financial fair play targets, UEFA has announced.

City and PSG were ordered to play in last year's Champions League with only 21 players in the squad and spending on new signings in last summer's transfer window was capped at £49 million as punishment for breaching FFP rules.

The clubs also agreed that total wages for last season's Champions League squad would not exceed that of the 2013-14 season.

They were also fined £16.3m a year for three years totalling £49m, but only the first year's fine has been imposed.

Their settlement agreement with UEFA means they still have to hit targets they agreed with the European governing body for 2016.

UEFA's club financial control body (CFCB) has announced the lifting of the restrictions for both City and PSG.

UEFA said in a statement: "The UEFA CFCB has lifted a number of restrictions on transfer activity, employee expenses and number of players in UEFA club competitions imposed on Manchester City FC after the club reached certain targets towards break-even compliance as part of the ongoing monitoring of their settlement agreement.

"The lifting of restrictions is subject to ongoing additional controls and audits.

"The club remains under strict monitoring and has still to meet break-even targets and is therefore subject to some limitations in 2016."

An identical statement was sent out in reference to PSG.

PSG president Nasser Al Khelaifi said on his club's official website: "After spending so much time on this issue, we are pleased with this fair and constructive decision that will allow the club to resume its development. We are now in a capacity to move on the transfer market that started last June 9. It is good for European football."

He said the decision would allow PSG to better compete with the traditional European giants and added: "We are now able to be more active on the transfer market to make our team even more competitive by recruiting the right talents that our team needs.

"However, we are mindful that the settlement signed last year with UEFA is still applicable. Our club has, among other objectives, to reach a break-even result in 2015-16, so we will spend our money on the right players as we always did it and this will help the PSG to grow. We don't have an unlimited budget."

Meanwhile, UEFA has also confirmed the amount clubs are permitted to lose over three years is being cut from €45m to €30m from the 2015-16 season.

UEFA said: "The reduction has always been part of the evolution process of FFP and goes hand-in-hand with the other revisions that have been made in the updated regulations to strengthen FFP for European club football's long term future."

Clubs will be permitted a period of accelerated spending on players, however, if they present a sustainable business model and can prove they are not gambling on success.

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