A key decision on whether to scrap the Premier League's controversial profit and sustainability rules and adopt an "alternative system" is said to be approaching, according to the league's top executive Richard Masters.
The current regulations, established in the 2015-16 season to prevent clubs from overspending, allow losses of £105m over a three-season assessment period.
However, they have been criticised by several top-flight teams for restricting their investment potential.
Sources suggest that a ruling regarding modifications is likely to be made at a November gathering.
Earlier this year, teams chose to continue with PSR for the ongoing campaign.
However a squad cost ratio (SCR) system of financial control was adopted by the Premier League on a trial, non-mandatory footing.
The squad cost ratio mirrors Uefa's current financial regulations and allows clubs to spend up to a portion of their overall income on squad-related costs.
Nearly half of Premier League teams must already adhere with Uefa's SCR as a consequence of European qualification.
Both Chelsea and Aston Villa were penalized by European authorities recently for violating regulations.
Asked about SCR at the Leaders sports conference in London, Masters stated: "We are talking to our clubs about an alternative system.
That's not to say we believe PSR is ineffective."
He added: "The goal is better harmonization with continental rules, which is team expenditure ratio, which is a revenue test.
European standards currently mandate 70%. Our system will be 85% because we consistently desire our teams to have the capacity to spend.
"English football's top division was established on the back of investment in which global financial resources are coming in. We don't want that to be restricted."
Previous Rule Breaches
Premier League clubs Everton and Nottingham Forest were docked points in the 2023-24 season for violating financial rules.
Last year, a Villa executive Nassef Sawiris said the regulations "do not make sense" and favored established teams, while he was considering legal action against the rules.
Having been forced to offload players to comply with the regulations, Newcastle manager Eddie Howe has also been outspoken against financial regulations, claiming it encourages teams to part with homegrown talent.
"Financial sustainability rules represent retrospective profit assessment and has its own advantages and drawbacks. No framework is flawless," Masters commented.
"We must maintain equilibrium and continue the conversation with our clubs, and that's an important decision, so we need to allocate sufficient time to get it right. But that decision is coming up."
Supplementary Regulatory Approaches
The Premier League is also trialling another model known as 'top to bottom anchoring' (TBA) which essentially limits the expenditure any team can make as a proportion of the revenue earned by the league's bottom side.
Reports suggest the proposed regulations - if approved could also include TBA, and would take effect at the start of next season.
Historic expenditure during the recent transfer window amplified certain Premier League teams' worries about PSR, and if modifications are necessary to protect competitive balance considering the extra income being generated for those involved in the expanded Champions League and Club World Cup.
