League 1 and 2 clubs have agreed to continue the Salary Cost Management Protocol (SCMP) and impose transfer embargos on overspending clubs from the start of next season (2012/13).
Under the SCMP, clubs needing to restrict spending on wages to a percentage of their turnover (55% in League 2, and 65% in League 1 reducing to 60% in 2013/14). Clubs are required to submit regular up-to-date budgetary statements and forecasts throughout the season. The League will impose a transfer embargo as soon as a club is about to exceed the limits.