Championship clubs to be limited to spending only what they earn in revenue from 2012-13 while League One & Two clubs to have wage cap of 55 per cent of turnover
Analyst firm Deloitte found that one club in three spends more on player wages than they receive in turnover and that Football League clubs owe up to £700million.
The new system of regulations will see Championship clubs restricted from 2012-13 to spending only what they earn in revenue while League One and Two clubs will have a spending limit of only 55 per cent of their turnover on player wages.
If any of the 72 clubs that have signed up for the scheme fail to comply the rules, they could be hit with a transfer embargo.
Clubs making significant infringements could even face points deductions if contraventions are sufficiently serious.
Platini told reporters: "We are very happy to see that Football League clubs, under the umbrella of the FA, are again taking the initiative on good governance issues by introducing Financial Fair Play.
"We are delighted that enlightened football bodies across the continent are trying to restore financial sanity to football on a national level, just as we are trying to do on a European level."