Coventry City could face financial cutbacks if the Football League clubs vote in a new system which means that clubs can only spend what they earn.
The proposal is being voted by clubs today at the League's AGM in Cyrpus and would see the Sky Blues who are losing around £0.5m a month forced to cut their playing budget.
The Football League Chairman Greg Clarke said: “The Championship clubs voted to look at financial fair play and in principle decided that was the road they wanted to go down.
“I think it’s essential, and the energy to solve this is coming from the clubs themselves.
“It’s a perfect storm in that a lot of things have come together to make this happen, including of course the level of debt in the game – £700 million in the Football League, most of that in the Championship – and big losses being racked up by the clubs.”
If the proposal is voted through, then the system is expected to be in placed for season 12/13 as Mr Clarke thinks it will take at least six months to develop a system which is clear, fair and transparent.