The Premier League have introduced a home-grown player rule which will come into effect from next season, alongside a limit on squad sizes.
From the 2010/11 campaign, the 20 Premier League clubs have voted to introduce measures which will see all teams required to have eight home-grown players out of a squad of 25.
Chief executive Richard Scudamore confirmed the changes, with clubs only able to make alterations to their squads during the two transfer windows.
"As of next season clubs will be required to have a squad named of up to 25 players, of which no more than 17 can be over the age of 21 and not home grown," Scudamore said.
"The definition of home grown is trained for three years under the age of 21 by somebody in the English and Welsh professional system.
"Clubs will have to declare their 25 at the end of August when the window shuts and then again at the end of January."
Players who are aged under 21 are eligible over and above the limit of 25 players per squad.
Scudamore does not believe the move will encourage clubs to hoard young foreign players and claims the England team will ultimately reap the reward.
"It's not in the club's interests to stockpile players. It will make buying home-grown talent more attractive," he said.
"We're not going down the route of a nationality test but what this will mean is that you just can't buy a team from abroad.
"We think it will give clubs an extra incentive to invest in youth. We think that one of the benefits will be that it will help the England team."
All 20 Premier League members also agreed to adhere to a set of financial reporting rules designed to protect the viability and sustainability of the clubs.
"They will all have to annually submit accounts and future financial information," said Scudamore.
"At all times the board of the Premier League will be applying a test which basically says this: can the club fulfill its fixtures, pay off its creditors when they are due and also to meet obligations to the Premier League's contracts and partners?
"If the board believes a club is at risk of not meeting those obligations, it has to then step in and agree a budget for the running of that club. Any transfers can be embargoed.
"It's absolutely crucial that these clubs are run as ongoing viable concerns. These financial rules apply immediately.
"This is tied in, and we passed the rule during the summer, to a 'fit and proper person test'. At our club meeting last week, the clubs absolutely endorsed our position of not linking expenditure to income."
From the 2010/11 campaign, the 20 Premier League clubs have voted to introduce measures which will see all teams required to have eight home-grown players out of a squad of 25.
Chief executive Richard Scudamore confirmed the changes, with clubs only able to make alterations to their squads during the two transfer windows.
"As of next season clubs will be required to have a squad named of up to 25 players, of which no more than 17 can be over the age of 21 and not home grown," Scudamore said.
"The definition of home grown is trained for three years under the age of 21 by somebody in the English and Welsh professional system.
"Clubs will have to declare their 25 at the end of August when the window shuts and then again at the end of January."
Players who are aged under 21 are eligible over and above the limit of 25 players per squad.
Scudamore does not believe the move will encourage clubs to hoard young foreign players and claims the England team will ultimately reap the reward.
"It's not in the club's interests to stockpile players. It will make buying home-grown talent more attractive," he said.
"We're not going down the route of a nationality test but what this will mean is that you just can't buy a team from abroad.
"We think it will give clubs an extra incentive to invest in youth. We think that one of the benefits will be that it will help the England team."
All 20 Premier League members also agreed to adhere to a set of financial reporting rules designed to protect the viability and sustainability of the clubs.
"They will all have to annually submit accounts and future financial information," said Scudamore.
"At all times the board of the Premier League will be applying a test which basically says this: can the club fulfill its fixtures, pay off its creditors when they are due and also to meet obligations to the Premier League's contracts and partners?
"If the board believes a club is at risk of not meeting those obligations, it has to then step in and agree a budget for the running of that club. Any transfers can be embargoed.
"It's absolutely crucial that these clubs are run as ongoing viable concerns. These financial rules apply immediately.
"This is tied in, and we passed the rule during the summer, to a 'fit and proper person test'. At our club meeting last week, the clubs absolutely endorsed our position of not linking expenditure to income."
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