ROVERS could face a transfer embargo next season if they fail to adhere to tough financial guidelines laid down by the Football League.
The Football League has increased its commitment to UEFA’s Financial Fair Play regulations with wage caps for clubs in League One and Two and limits on losses for Championship clubs.
Should Rovers breach the permitted spending threshold on player wages, they would be subject to a transfer embargo or refused transfers in the first place.
The drop into League One means Rovers will now operate under the Salary Cost Management Protocol which was first used in League Two in the 2004/05 and was piloted in third tier this season.
Practically, for Rovers this means total expenditure on player wages will be limited to a proportion of the club’s turnover.
Next season this proportion will stand at 65 per cent, dropping to 60 per cent the following year.
Transfer embargoes are part of tough action the Football League has promised to take with offending clubs.
They have also pledged to stop overspending ‘at the source’ by refusing player registrations which would take clubs beyond the threshold.
Should Rovers return to the Championship in the near future, the club will be limited on the level of losses they are allowed.
Permitted losses will reduce from £4m this season to £2m by 2015/16 though investment in youth development and community programmes will not be included.
Clubs promoted to the Premier League will face a ‘fair play tax’ on any amounts over the limit on losses.
Money collected through the tax will be redistributed to Football League clubs who have adhered to the financial restrictions.
The tight limits in the Championship closely reflects UEFA’s Financial Fair Play which will be used to exclude offending clubs from European competition in the future.