NEWPORT County AFC are in the process of finalising their playing budget for their first season in League Two ahead of Tuesday’s deadline.

Under Football League Financial Fair Play (FFP) guidelines each club in the Championship, League One and League Two has to submit their playing budget for the 2013/14 season by June 18.

League One and Two clubs chose last summer to implement the Salary Cost Management Protocol (SCMP) first used in League Two in the 2004/05 season.

The SCMP broadly limits spending on total player wages to a proportion of each club’s turnover, with clubs providing budgetary information to the Football League at the beginning of the season that is updated as the campaign progresses.

The aim of FFP is to reduce the levels of losses being incurred at some clubs and, over time, establish a league of self-sustaining clubs.

Any club that is deemed to have breached the SCMP permitted spending threshold, which is 55 per cent of turnover in League Two, will be subject to a transfer embargo.

“The playing budget is set by the Football League and we can only spend 55 per cent of our income,” said County chief executive Dave Boddy.

“We’ll submit that on Tuesday and it has to be approved by the League.”

The Exiles were officially elected members of the Football League at last week’s League AGM in Portugal, which was attended by Boddy and chairman Les Scadding.

The League Two fixtures will be announced on Wednesday, June 19, at 9am.

The Capital One Cup round one draw will be announced on Monday, June 17, at 9.30am.