The EFL salary caps for League One and League Two that were introduced for this season have been scrapped following a decision by an independent arbitration panel.
Clubs in the third and fourth tier of English football voted in favour of salary caps last August, which were set at £2.5m for League One sides and £1.5m for clubs in League Two.
However, the Professional Footballer's Association (PFA) immediately challenged the cap, which they argued were 'unlawful and unenforceable' and an independent panel has forced the proposals to be withdrawn.
Introduced on the back of the first COVID-19 lockdown, which led the two divisions to be curtailed and not played to completion, the EFL believed the caps were essential to ensure clubs lived within their means.
Rovers were among the clubs to support the introduction of a salary cap, with CEO Martyn Starnes confirming the club's position last year.
"As a club, we also voted in support of this cap as we feel that it is an important step to help ensure that clubs at our level can operate in a more sustainable manner."
However, the scrapping of the proposals means that the EFL is now back at square one in their battle to ensure financial stability across all divisions and confirmed discussions with member clubs will occur later this week.
In a statement, the EFL said: "An independent arbitration panel has upheld a claim from the Professional Footballers’ Association (PFA) that the EFL was in breach of the constitution of the Professional Football Negotiating and Consultative Committee (PFNCC) by introducing ‘Squad Salary Caps’.
"In August 2020 following an extensive and comprehensive consultation process with EFL Clubs, Leagues One and Two voted to adopt new financial controls that replaced the previous Salary Cost Management Protocols (SCMP).
"The PFA argued that the PFNCC’s remit to consider matters relating to the employment of, and any associated rules and regulations to professional players employed by EFL Clubs, was not properly considered as part of the process to introduce the new rules and as a result served a notice of claim to that effect.
"The EFL and PFA then agreed to refer that matter to arbitration and after hearing submissions from both parties, an independent panel concluded that the EFL was in breach of its agreement as a member of the PFNCC.
"At the time of the adoption of the Salary Cap Rules, the EFL included a provision to ensure that any decision such as this would have the effect of reinstating the SCMP rules that were in operation during season 2019/20, which links player related expenditure to turnover.
"The EFL will now discuss the matter of financial controls and implications linked to this outcome at a series of meetings with its Member Clubs later this week."
