10 clubs operating in the second-tier of English football were placed under a transfer embargo last month, following financial and administrative issues.
The clubs in question, according to the Daily Mail, were Birmingham City, Blackburn Rovers, Cardiff City, Coventry City, Derby County, Huddersfield Town, Luton Town, Reading, Sheffield Wednesday and Stoke City.
From those, it is now understood that Huddersfield have been removed from the list with Stoke soon to follow with both clubs hit with the penalty due to administrative issues, as opposed to financial ones.
On the other hand, the embargo for some of the clubs could be highlighting some of the financial strain they find themselves under, a likely result of the coronavirus pandemic.
Coventry City have since confirmed the transfer embargo, explaining that they had to take a government option to file company accounts with a three month delay. Upon this, the embargo should be lifted, not having an impact on summer transfer plans.
Similarly, Luton Town released a statement: "Our first embargo for a decade is simply an anomaly brought about by an unsynchronised timing of financial reports due to the pandemic.
"The club’s 2019/20 accounts, whilst finalised, have yet to be signed off by our auditors which will be done well before the statutory deadline.
"Given the exceptionally difficult operating environment caused by the pandemic the requirement to continue to play “behind closed doors”, financial forecasts have rightly been scrutinised much more thoroughly and Companies House provided an extension of the statutory filing deadline to June to create sufficient time to complete this additional work accurately.
"Indeed the club will publish unqualified accounts before the end of April.
"However, EFL rules couldn't be adjusted to meet the Companies House extension and require that signed accounts still needed to be submitted in March, which the club was unable to achieve.
"The matter will be resolved as our auditors conclude the report in the next couple of weeks."
Author: Jake Wilkin