Financial regulations for football clubs

creepyaddick

Could someone please explain what this actually means?
http://www.bbc.co.uk/sport/0/football/21374699
From what I read, any club that loses more than £105M will get a points deduction, but if all 20 teams in the PL only lost £316M, I can't see any one losing points
Am I reading it correctly?

And will it affect teams outside of the PL?

seriously_red

They are saying £105M over a three year period so an average loss of £35M a season... I guess smaller clubs voted against as it locks in an advantage to bigger ones and stops Abramovich style transformations of littluns like Chelsea lol
The real FFP bite will be at Championship level with losses >£5M being penalised