Wolverhampton Wanderers have reached a settlement with UEFA after breaching their Financial Fair Play rules. 

In a statement made by UEFA, Wolves have agreed to report "a maximum break-even deficit of €30m in the financial year ending in 2020 and to finally reach, in the 2021/22 season, an aggregate break-even result for the financial years ending in 2019, 2020 and 2021."

Wolves have also agreed that employee benefit expenses will be restricted for the financial year ending in 2020.

The fine handed to the club totals €600k, which will be "withheld from any revenues it earns from their participation in UEFA competitions." 

Of the €600k, €200k will be paid in full whilst the remaining €400k is dependent on whether Wolves stick with the break-even target.

Smaller squad in Europe

The statement also states that the club "accepts that, for the season 2020/21, it may only include a maximum of 23 players", instead of the 25 players allowed.

This means, if Wolves go onto win this season's Europa League and qualify for next season's Champions League, a 23-man squad will be the maximum they can select.

If the Wanderers fail to fulfil all financial measures agreed with the CFCV Investigatory Chamber, the squad size restriction could run onto the 2021/22 season - so long as they qualify for European football.

Limited spending

With the £27m losses the club announced and the agreement to break-even, arrivals are likely to be limited this summer unless players are sold.

Despite signing 20 players following their promotion to the Premier League, with Diogo Jota and Joao Moutinho all arriving, Wolves made £20m profit.

After spending more money than they've made, they breached the Financial Fair Play rules and now are limited to their spending.

However, hope is not lost for Nuno Espirito Santo. There should still be some money to spend as Patrick Cutrone departed Molineux for Fiorentina in January on an 18-month loan. Fortunately for Wolves, they will be able to offload the Italian forward next summer as there is an obligation to buy for £16.2m.