Coventry City have been placed under a transfer embargo after failing to file their accounts in the time given.
The temporary decision will come as a blow to the Championship side but chief executive Tim Fisher has claimed that it is not a dire situation.
"As part of the accounts submission process we have to be able to show committed funding out for the next financial year and, at this stage, we could not do this as we, the board, are still in the process of agreeing and negotiating budgets with the owner," Fisher told the club's official website.
"There is nothing untoward about this and it is perfectly normal to be negotiating funding with the owner. We would hope to secure funding commitments in the very next few weeks.
"We totally understand and appreciate that supporters might be concerned, but while the situation is far from ideal, we are confident it will be resolved very soon."
Meanwhile, the club have also confirmed that manager Andy Thorn will be rested after being diagnosed with a virus.
Danielle Joynson
