Saracens have been warned that a salary cap breach this season will result in automatic relegation form the Gallagher Premiership.
The reigning European and Premiership champions were given an ultimatum at a meeting of the chief executives of the Premiership clubs earlier this week.
According to reports, there is a widely held belief that Saracens will again breach the £7 million salary limit this season.
The clubs are usually audited for the salary-cap regulations at the end of the season, but given the state of play and the Saracens controversy, an audit may be carried out mid-season to ensure wage compliance across the league.
The defending champions have already been docked 35 points and fined 5 point 3 million pounds after they were found guilty of breaking rules over the last three campaigns.
Saracens had said following that judgment, they would be under the cap this season. Ed Griffiths, the new CEO has since admitted the club was on course to breach the cap once again.
He added the club would be making urgent and significant cuts to their wage bill.
Exodus
Players have already signalled their intention to leave and Saracens are understood to have sounded out the Scarlets about the possibility of taking Liam Williams before the end of the season in order to ease the wage bill.
The Times reported that Saracens have been calling other Premiership clubs to try offload players for the current season, but under salary cap rules the clubs do not have the financial wriggle room to take advantage of the Saracens situation.
One of the players leaving in the summer is England lock George Kruis, he told Off The Ball "It is what it is" regarding the players take on the salary cap saga.
Saracens interim chief executive Edward Griffiths told the BBC: "Discussions are continuing, and nothing has been finalised but our position remains the same.
"It is clearly in the interests of the league and English rugby that this matter is dealt with as soon as possible, and we are prepared to do whatever is reasonably required to draw that line.
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