The English Football League have approved a number of changes to the Championship's Profitability and Sustainability Rules.
The alterations will take effect immediately after eight proposals were put forward and were passed.
The changes summarised below are ones that Nottingham Forest will have to take into account going forwards
Here are the main changes...
COVID
As a result of several clubs highlighting the financial impact the pandemic has had on clubs, despite a return to full capacity stadiums, clubs have decided to reintroduce COVID add backs into the P&S calculation for the 2021/22 season.
Clubs will be able to claim lost revenues or exceptional costs directly relating to the pandemic, with a value of up £2.5m for the period of 2021/22.
Clubs can also claim up to £5m for seasons 2019/20 and 2020/21.
Accounting for Player Registrations
Clubs will now be required to provide a Player Registration schedule that will ensure greater transparency in respect of information.
That is not limited to players wages, sell-on rights, registration costs and amortisation.
The new requirements follow the principles of the UEFA Club Financial Fair Play Regulations.
The EFL clubs have also agreed that a mandatory requirement for the amortisation of Player Registrations on a straight-line basis should be included.
Introduction of Monitoring for Forecasted Breaches
To ensure future compliance with the P&S rules, clubs have agreed that where a breach is forecasted in future years, the League should have the ability to impose a business plan or appropriate monitoring requirements.
Trevor Birch, EFL Chief Executive added: "Over the past two years of unprecedented challenges and upheaval, the priority of the EFL has been to support Clubs practically wherever possible while maintaining the ongoing integrity of our competitions and the League as a collective.
"I’m pleased to say that the changes agreed by Clubs will help them manage ongoing financial issues in the short term, while providing the League with additional powers to assist Clubs in complying with their P&S obligations going forward."
