EFL reveal the two League One clubs that have been hit with a transfer embargo
The EFL have confirmed that Fleetwood Town and Gillingham are both operating under a transfer embargo.
Clubs last month agreed an amendment to the EFL regulations, allowing the league's governing bodies to declare which sides were operating with restrictions in the market.
The EFL published that list for the first time last night, and it included Sunderland's two League One rivals.
Both clubs are under restrictions under the terms of their monitored loan agreement; funds they received in addition to the grants given to clubs last year to help them cope with the impact of the COVID-19 pandemic.
Gillingham's embargo also relates to the late filing of their annual accounts.
Both sides are able to recruit new players (and indeed have already done so through the summer), but all arrivals must fall within a strict set of parameters.
The EFL outlines those parameters as follows: "Clubs can ‘staff up’, so they have 23 players of professional standing within their squad.
"Clubs are able to ‘staff up’ to ensure the integrity of the competitions remain and so that Clubs are able to fulfil their fixtures.
"Clubs are only permitted to ‘staff up’ by signing players on loan or players not registered with another Club
"Clubs cannot pay fees to acquire loan players and cannot pay additional wages on top of the salary the player receives at their parent Club.
"Clubs ‘staffing up’ may only register players until the end of the current Season, whilst loan transfers can only be for half a season
"Budget restrictions apply dependent upon the divisional status of the Club under embargo."
A number of other clubs through the league pyramid have also been confirmed as operating under an embargo.
In League Two, Oldham Athletic, Scunthorpe United and Swindon Town are all facing restrictions.
In the Championship, Derby County, Hull City and Reading are listed as under embargo.
A message from the Football Clubs Editor
Our aim is to provide you with the best, most up-to-date and most informative Sunderland AFC coverage 365 days a year.
This depth of coverage costs, so to help us maintain the high-quality reporting that you are used to, please consider taking out a subscription to our new sports-only package here.
Your support is much appreciated. Richard Mennear, Football Clubs Editor