Coventry hit by transfer embargo

A view of Coventry's Ricoh Arena (GETTY IMAGES)

Coventry have been placed under a transfer embargo after failing to file their club accounts on time.

The npower Championship club missed the February 29 deadline and as a result they are temporarily banned from any activity in the transfer market.

However, the Sky Blues have moved to ease fears of financial problems at the Ricoh Arena.

In a club statement, chief executive Tim Fisher said: "We want to be 100 per cent transparent and open about the situation so our supporters are left in no doubt about what is happening.

"Our accounts were due on February 29. As part of the accounts submission process then 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.

"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.

"The owner has previously funded the club for a period of more than four years and is currently reviewing our budget proposal for the coming year.

"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."

Coventry, owned by SISU, have had a history of financial problems in recent years.

They avoided going into administration by just over half an hour when former Manchester City defender Ray Ranson took over the club in 2007, while they needed a cash injection from SISU last March to avoid a similar situation.

PA