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Championship promotion hopefuls Nottingham Forest will find out next month if they face a transfer embargo for failing to meet financial fair play requirements.

Nottingham Forest will find out next month whether they face a transfer embargo for falling foul of new financial fair play regulations.

The Championship promotion hopefuls, who are owned by Kuwaiti businessman Fawaz Al-Hasawi, reported a £12m loss in March, and will submit their next accounts in December.

The Football League and Premier League are scheduled to meet next month to discuss how clubs who have failed to meet the requirements will be punished.

Sky Sports News reports that Forest manager Stuart Pearce and chief executive Paul Faulkner are prepared for sanctions which could see a transfer embargo placed on them during the January 2015 window.

Two other Championship clubs are also understood to have failed to meet Football League criteria.

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