This message was buttressed by Uefa's annual audit, which showed that in the 2009‑10 financial year the 665 clubs for which Uefa had annual accounts in the top divisions of European football's 53 countries recorded a total net loss of €1.6bn (£1.3bn). Total debts were €8.4bn.

The loss was made despite clubs' income rising, from €12bn to €12.8bn, demonstrating, as Infantino stressed, that unlike the wider European economy football is booming, but there is huge overspending, principally on players' wages. Among Europe's top clubs, 78 spent more than their entire income on wages; one was in the Premier League – Manchester City, who in the second year of ownership by Sheikh Mansour bin Zayed al-Nahyan recorded a loss of £121m.

"There was a great risk of crisis, of the bubble bursting," Infantino said. "You can see from the losses and the debts that the situation is not that healthy and we cannot go on like this. We had to do something, and financial fair play is the way we have designed it."

Andrea Traverso, Uefa's head of licensing, made it clear that escalating players' wages were identified as the cause of football's financial difficulties, but Uefa found that a salary cap would be unworkable across Europe and very difficult to comply with European law. The decision to focus on limiting the losses clubs can make is the means Uefa decided on instead to dampen down wage inflation. Clubs are limited to losing a total of €45m in this 2011-12 financial year and 2012-13, if covered by an owner, and the figures will be scrutinised before the start of the 2014-15 season.

Infantino explained why Uefa decided that losses must be limited even where a club, like City, has a wealthy owner committing himself to long-term funding. "Having one wealthy owner is fine for a period but it creates a situation where the club depends too much on one owner, and that is not what a football club should be. Very often the owner withdraws, creating problems not only for that club, but for others too. Spending by that club also has a general effect of inflating wages."

Uefa set out the sanctions which will be available for a semi-independent panel to impose on clubs in breach of the rules from 2014-15. Depending on the seriousness of the clubs' financial situations, the penalties range from a reprimand, to a fine, deduction of points in Uefa's competitions, withholding income, prohibiting the registration of players or restricting the number of players a club can field, leading ultimately to a ban from the Champions or Europa Leagues.

Bell made it clear Uefa believes the rules will be upheld in a European court, or the court of arbitration for sport, because their objectives are reasonable, aimed at protecting the game's "long‑term viability and sustainability". Any sanctions would have to be "proportionate" to survive a legal challenge, but also "effective", substantial enough to ensure clubs comply.

The message is that Uefa believes these rules are necessary, and understands its credibility depends on enforcing them. But it was also keen to cast a positive vision: of a future when clubs do not make huge losses, stay in business and attract decent owners who want to invest in long-term development, permitted under the rules, not just throw money at players in wages. Infantino addressed the criticism that restraining wealthy owners will leave the clubs making the most money unchallenged, saying that as the rules settle in, Uefa will be prepared to examine how the game's money is shared out, to seek more equal "competitive balance".

After initial opposition all Premier League clubs, including City, are seeking to comply, and Uefa went out of its way in Nyon to assure them that in 2014 it intends to enforce its new rules, seriously.{jcomments on}

http://www.guardian.co.uk/football/2012/jan/25/uefa-financial-fair-play-rules