Leeds United has a transfer embargo imposed on the club for the January window after breaching the Football League’s financial fair play rules (FFP).
The League announced that Leeds, along with Blackburn Rovers and Nottingham Forest, incurred more than £8 million in financial losses during the previous season and all three clubs will be unable to sign any new players either permanently or on loan, unless there are extenuating circumstances – specifically if a club has 24 or fewer ‘established players’, that is players aged 21 or over that have made at least five starts for the club.
If a club meets these requirements their possible transfer activities are still heavily conditional, and Leeds do not meet the requirements.
A Football League statement Leeds United banned from transfers during the January window after breaching the Football League’s financial fair play rules.said: “An initial analysis of FFP submissions from the current 24 Championship clubs has indicated that three clubs - Blackburn Rovers, Leeds United and Nottingham Forest - have failed to meet the fair play requirement under the division’s FFP rules.
“Consequently, all three will be subject to an ‘FFP embargo’ under Football League regulations from January 1, 2015 for the remainder of the current campaign.”
The clubs will have their embargoes lifted at the end of the season if they have stayed within this season’s maximum permitted losses of £6 million; £3 million losses plus £3 million covered by shareholder investment.
Submissions from those promoted to the Premier League (Queens Park Rangers, Leicester City and Burnley) and those relegated from it (Norwich City, Fulham and Cardiff City) last season will now be considered by the Football League.
The Football League's ruling marks another bad week for Leeds following the disqualification of president Massimo Cellino from owning the club and will step down while he appeals, and last weekend's 1-0 loss to Fulham.