The "most radical overhaul" of Financial Fair Play rules in English football could be announced this summer.
New measures will introduce cost controls for Championship clubs that will mean they have to keep their expenditure within 70 per cent of the club's revenue. It will see the current loss threshold of £39 million over three years scrapped.
According to the Telegraph, talks between the Premier League and EFL are "ongoing", with the latter hoping that profit and sustainability reform will also a big shake-up to the way parachute payments work.
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Rick Parry, chairman of the EFL, told Telegraph Sport: "We're totally committed to both - better regulation, but provided it goes hand in hand with a rethink on distribution.
"We will be therefore refining in conjunction with the Premier League our own profit and sustainability rules, which don't work in the Championship because clearly clubs are neither profitable nor sustainable.
Nottingham Forest rivals Derby County were handed a points deduction and placed into administration after breaking profit and sustainability rules, while the likes of Bristol City, Middlesbrough and Stoke City are all at risk of future sanctions. It is reported that all Championship clubs have now given the EFL advised numbers on the cost of the pandemic.
