UEFA president Michel Platini's plan to make clubs live within their means has been approved by European soccer's governing body.
The new rules, dubbed "financial fair play," will in principle ban clubs from spending more than their revenue.
They are aimed at ending the trend of rich owners buying into the game and transforming the fortunes of a club.
"We don't want to kill or hurt the clubs, on the contrary we want to help them in the market," Platini told reporters after a UEFA executive committee meeting had rubber-stamped the plan.
The Frenchman said he also had the support of the clubs. "The teams who play in our tournaments have unanimously agreed to our principles," he added.
Former Belgium prime minister Jean-Luc Dehaene was named chairman of the Club Financial Control Panel, which will oversee the introduction of the new rules.
"The rule of financial fair play is aimed at ensuring the healthy, lasting viability of the clubs," Dehaene said in a statement.
Platini added that the new rules would be implemented from the 2012/13 season and clubs who failed to abide by them could ultimately be thrown out of European competition. Domestic championships will not be affected.
Platini said clubs would be given incentives to invest in youth development and facilities, including stadiums.
"The only people who want fewer rules are the ones who line their pockets," he said.