An important ruling on whether to scrap the Premier League's controversial profit and sustainability rules and introduce a new framework is said to be approaching, according to the league's top executive Richard Masters.
The current regulations, introduced in 2015-16 to prevent clubs from overspending, permit a £105 million deficit over a three-year reporting cycle.
However, they have been criticised by several top-flight teams for limiting their ability to invest.
Sources suggest that a decision on any changes is likely to be made at a meeting in November.
In February clubs opted to retain PSR for the ongoing campaign.
However a squad cost ratio (SCR) system of fiscal regulation was adopted by the Premier League on a shadowing, non-binding basis.
SCR is similar to Uefa's existing financial rules and allows clubs to spend up to a portion of their overall income on team-related expenses.
Nine of the league's 20 clubs already have to comply with Uefa's SCR as a consequence of European qualification.
Two prominent clubs were fined by Uefa in July for breaching the rules.
When questioned regarding SCR during the sports leadership summit in London, Masters said: "We are talking to our clubs about an alternative system.
This doesn't imply we don't think the PSR system works."
He continued: "It's about closer alignment with European regulation, which is team expenditure ratio, which is a revenue test.
In Uefa, it's now set at 70%. Our framework will allow 85% because we consistently desire our teams to have the ability to invest.
"English football's top division was established on the foundation of financial backing in which international capital flows enter the league. We aim to prevent this from being restricted."
Previous Rule Breaches
Top flight teams two historic clubs were penalized with point deductions in the 2023-24 season for violating financial rules.
In 2023, Aston Villa's co-owner the club's co-owner said the regulations "do not make sense" and protected the biggest clubs, while he was considering legal action against the rules.
After being compelled to sell squad members to adhere to the rules, Newcastle manager Eddie Howe has also been critical of PSR, saying it incentivises clubs to sell academy products.
"The PSR is a look-back profitability test and has its own strengths and weaknesses. No system will be perfect," Masters commented.
"We must maintain equilibrium and persist with discussions with our clubs, and that's an important decision, so we should take the time to get it right. But that decision is coming up."
Supplementary Regulatory Approaches
The league is additionally testing an alternative framework called 'top to bottom anchoring' (TBA) which essentially limits the expenditure any team can make as a multiple of the income earned by the league's bottom side.
Information indicates the proposed regulations - if approved could also include TBA, and would take effect at the beginning of the upcoming campaign.
Historic expenditure during the recent player acquisition period amplified certain Premier League teams' worries about PSR, and whether changes are needed to protect competitive balance considering the extra income being earned by participants in the enlarged European competition and Club World Cup.
