Scunthorpe United’s preparations for the 2021/22 season have been disrupted by news that they have been hit with a transfer embargo by the EFL.
The Iron was one of eight teams revealed to have been subject to restrictions on their transfer activities.
Derby County, Hull City, Reading, Fleetwood Town, Gillingham, Swindon and Oldham Athletic were the other parties to receive embargoes, with the EFL moving to release a club list following a change in regulations voted by the EFL clubs in the last month.
Read more: Lewis Spence returns to Scotland after a season with Iron
As the news suggests, Scunthorpe has been given penalties preventing payment of transfer fees – but will that prevent them from signing more this summer?
Here is the truth of what the iron transfer embargo means …
Why are they under embargo?
The EFL said the Iron embargo is based on “conditions under a supervised loan deal.”
This relates to loans that were made available to clubs in Leagues One and Two during the coronavirus pandemic, which, on request, meant clubs had to agree to specific team sizes and playing budget.
What does this mean for them?
Under EFL operational rules, clubs are allowed to form their squad of up to 23 ‘professional level’ players, meaning that players have made at least one appearance for any club in a competition. in the first team.
Therefore, the Iron will be allowed to sign players during the transfer window to give themselves a squad of 23, but with a number of caveats.
They will be allowed to sign free agents for a maximum of one year, or to loan players for a maximum of half a season.
They cannot, however, pay any loan fees for the players, nor any additional salary on top of the salary that the players receive at their home club.
What did the club say about the embargo?
In a statement released by the club last week, Scunthorpe said: “Scunthorpe United can confirm that he was an applicant and recipient of an EFL monitored loan which was available to League One and League Two clubs earlier this year.
“One of the general principles of the loan was that it would not be available for clubs to fund player transfer costs and player salaries.
“As a result, all clubs accepting the loan are subject to an embargo that allows them to have a team size and playing budget within agreed limits that allow this club to meet its goals.
“The specific limits imposed on Scunthorpe United by this embargo are within the parameters already defined internally for the 2021/22 season in terms of team size and budget.”