Why Middlesbrough's Championship rivals Derby County, Reading and Hull City have been placed under transfer embargoes

Championship clubs Derby County, Reading and Hull City have all been placed under transfer embargoes just a month before the start of the 2021/22 season.

Thursday, 8th July 2021, 1:03 pm
Updated Thursday, 8th July 2021, 1:04 pm

Following a change in regulations, which was voted for by clubs last month, the EFL now publishes a list of clubs which have been placed under transfer embargoes and the reasons why.

Derby are under a embargo after breaching several EFL rules, which include:

Regulation 16.2 - Failure to provide audited annual accounts

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Derby County's Pride Park.

Regulation 16.3 - Annual Accounts not filed with Companies House

Regulation 17 - Default in payments to HMRC

Regulation 51.2.3 - Default in paying transfer fee instalments

Profit and Sustainability Rules - non-submission of audited accounts

Reading’s transfer embargo comes after the club breached profit and sustainability rules, while Hull's punishment is due to 'conditions under a monitored loan agreement'.

League One clubs Fleetwood and Gillingham have also been placed under transfer embargoes, while in League Two Oldham, Scunthorpe and Swindon have been placed under the same restrictions.

Under the EFL’s rules, if the clubs under embargoes have less than 23 players, they will still be able to sign free agents on a maximum of one-year deals, or bring in players on loan for up to half a season "to protect the integrity" of the competition.

Clubs under transfer embargoes won’t be able to pay transfer fees for players, though, or loan fees, which includes additional wages on top of players’ salaries at their parent clubs.

The 2021 summer transfer window will remain open until August 31.

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