UEFA president Michel Platini today unveiled plans for financial reforms that could see the Premier League's big spenders forced to change their habits or face possible exclusion from European football.

Platini's vision is for all clubs in European competition to be made to only spend what they earn in football revenues - and claims he has the backing of Chelsea owner Roman Abramovich.

The rules would also outlaw 'sugar daddies' such as Manchester City's owner Sheikh Mansour from making huge gifts of cash to their clubs.

Platini, speaking in Monaco, said the details of the plan were still to be agreed with clubs but the rules would be implemented in 2012.

He said: "We have three years to help the clubs by saying you cannot spend more than you earn.

"If a club can get loans from a bank to buy players and is able to pay back bank loans then it is not a problem. But if a club gets a lot of money or subsidies from a big backer and is still in deficit in two years then it is a problem and we don't like that."

Platini said an independent panel would be set up to judge whether clubs had broken the rules.

He added: "The panel will refer any matter to the disciplinary committee and sanctions will be taken from a reminder to a fine to expulsion from the Champions League."

Platini accepted that the differences in tax systems and stadium ownership varied hugely across the continent.

Chelsea look to be the Premier League club most at risk from the new rules as they recorded a £65.7million loss up to June last year.

Platini said however: "It's mainly the owners that asked us to do something - Roman Abramovich, [AC Milan's] Silvio Berlusconi, [Inter Milan's] Massimo Moratti, They do not want to fork out any more.

"I have told Mr Abramovich about this and he said nothing against it."

Chelsea chief executive Peter Kenyon said the club welcomed the broad principle but "the devil was in the detail".

Kenyon told Press Association Sport: "The real work is in the detail and those discussions will continue in earnest over the next 12 months.
"I don't think anyone could disagree with the broad principle."

UEFA would also look at losses incurred by clubs' parent companies who have to service huge loans - and that spells bad news for English clubs.

Red Football, United's parent company owned by the Glazer family, recorded a £21million loss last year while Kop Holdings, Liverpool's parent company, lost £41million.

Debts incurred to build stadia or invest in youth set-ups would not be subject to the same restrictions, so Arsenal would not suffer from the £318million debt they took on to build the Emirates.

UEFA deputy general secretary Gianni Infantino is the man in charge of formulating the detailed plans and he said sanctions would depend on the size of a club's losses.

Infantino said: "The potential sanction will have to be in proportion - it will be different if you make a loss of £1million every two years or £100million every year."

He insisted the rules would not stop the likes of Manchester City's owner breaking up the domination of the Big Four in the Premier League.

Infantino said: "We think that the opposite will happen because if you have a rich sugar daddy coming in and throwing money around this is unhealthy in the medium and long term.

"For the club to be healthy it has to live on its own means and generate income and this is not impossible.

"Clubs have generated revenues by investing in stadiums otherwise it is an artificial bubble which inflates the system and is unhealthy and unsustainable."