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The gist:

Long-Term Sustainability Regulation

From the 2013/14 season Premier League clubs cannot make a loss in excess of £105m aggregated across seasons 2013/14, 2014/15 and 2015/16.
Any club that makes a loss up to that limit will be subject to a tighter regulatory regime that includes:
- Secure owner funding for three years ahead
- Increased future financial information over the next three seasons.

Short-Term Cost Control Measure

Premier League clubs are restricted in terms the amount of increased PL Central Funds that can be used to increase current player wage costs to the tune of:
2013/14: £4m
2014/14: £8m
2015/16: £12m

The Short Term Cost Control measure applies only to clubs with a player wage bill in excess of £52m in 2012/13, £56m in 2014/15 and £60m in 2015/16.

That roughly means clubs can’t run up losses of more than £105m over three seasons. That’s 35 million per season. Which, if one considers the average losses of most Premier League clubs not named Manchester City, is weak tea indeed. The Short-Term cost control measure is a little better, as it prevents excessively rewarding the financial “winners.”

Stay-tuned for Martin Samuel-esque outrage updates…

UPDATE: Apparently the penalty for breaching the rules involves points deductions.