EFL place clubs unable to pay this month’s players’ wages under transfer embargo after providing them with financial assistance while £50m bailout talks with the Premier League rumble on
- Several EFL clubs are under a temporary transfer embargo after taking loans
- The EFL have offered clubs most in need with a bridging loan to help pay wages
- Those who accept the loan will not be able to sign players until it is paid back
- Talks are ongoing with the Premier League about a £50m bailout for EFL teams
A number of EFL clubs have been placed under transfer embargo after accepting a bridging loan from their governing body to avert short-term financial meltdown.
The EFL offered their members support to help pay this month’s players’ wages on the condition they will not be able to sign players until the money is paid back.
Several clubs have accepted the assistance so are currently unable to sign free agents and face a race against time if they want to be active in the January transfer window.
Several EFL clubs are under a temporary transfer embargo after accepting financial assistance
The Covid-19 pandemic has left a huge hole in the finances of EFL clubs with empty stadiums resulting in a significant loss of revenue.
Talks are ongoing with the Premier League about a £50million bailout for teams in League One and League Two with positive progress made last week after months of negotiations.
Until a deal is confirmed, the EFL’s bridging loans allows clubs in the severest situation to survive and fulfil their next set of fixtures.
Should the Premier League bailout be agreed soon, it would allow bridging loans to be repaid by January so teams affected can sign players in the next window.
The EFL will not disclose the names of clubs currently under embargo but the number is fewer than 10.
The Covid-19 pandemic has left a huge hole in the finances of EFL clubs up and down the UK