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Why are Embargoes now being reported?

In the interests of transparency and in line with the principles of good governance, in June 2021 EFL Clubs approved an amendment to the Regulations to allow the EFL to publish a list of those Clubs under Registration Embargoes on EFL.com.

The Regulation change was carried following a vote of EFL Clubs, of which a majority of Clubs, including a majority of Championship Clubs, were required to vote in favour of the Regulation change.

What will the EFL report?

On the dedicated Embargo Reporting page on EFL.com, Clubs under embargo will be detailed, along with the reason for their embargo. i.e. the Regulation the Club has failed to comply with.

Once placed under a registration embargo, Clubs have two Business Days to secure the removal of the Embargo before the Club’s name and reason for Embargo is published on the Embargo Reporting Service.

What is the purpose of an Embargo?

Embargoes are intended to operate as a deterrent against Clubs defaulting on financial obligations to clubs or players, and/or breaching other key relevant regulations e.g. reporting on financial matters.  An embargo prevents a Club from strengthening its team or adding to its playing staff costs until such time as it has met its existing financial obligations and/or the Club has rectified the relevant breach of EFL regulation(s).

Under what circumstances can a Club operating under an Embargo sign players?

During a Transfer Window

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

Outside of a Transfer Window

• Outside of a transfer window, Clubs can only register Out of Registration players (free agents) and Clubs can only register Out of Registration players if they have less than 16 players of Professional Standing (2x Goalkeepers, 14x Outfield Players)
• In line with Regulation 57, Clubs can register an Emergency Goalkeeper Loan if they don’t have any Professional Goalkeepers available due to injuries, suspensions or international call-ups.

Professional Goalkeeper =  a goalkeeper (excluding any Goalkeeper registered as a Non-Contract Player) who has been named in the starting eleven on five or more occasions by:

• any Club (or Premier League club) in any matches in the relevant league or first team cup competitions (other than the EFL Trophy); and/or
• any other club in a professional league in that club’s home association (by way of example, any division of the Scottish Professional Football League, or Serie A, B or C).

Professional Standing = is any Player who has made one first team appearance (including as a sub) for any Club in any first team competition (EFL Trophy appearances do not count).

If a Club is under Embargo and has 23 players of Professional Standing, can they acquire new players?

• Clubs under Embargo with 23 or more players of Professional Standing cannot register players
• Should the Club sell a player/players or terminate existing contracts, then they would be able to ‘staff up’ to ensure they have 23 players of Professional Standing within their squad
  • A player of Professional Standing leaving the Club on loan does not reduce the number of eligible players the Club is deemed to have

Can Clubs register their academy players if the Club is under Embargo?

• Clubs can continue to register Academy Players, Scholars and non First-Team Players
• Clubs can also upgrade Scholars and Academy Players to their First Professional Contract, though this will be dependent upon the circumstances of the individual Club and will be determined by the League.

Can Clubs offer new contracts to players whilst under Embargo?

• Yes, Clubs can offer new contracts to existing players, though this will be dependent upon the circumstances of the individual Club and will be determined by the League.

In relation to Profit & Sustainability rule breaches, under what circumstances would a Championship Club operate under an Embargo?

• If a Club fails to provide the required information in relation to Profit & Sustainability rules, then they will be subject to an Embargo.
• Clubs that don’t forecast to breach the Upper Loss Threshold within their submissions – but only on the basis of future receipts – will also be subject to an Embargo.
• Clubs that breach the Upper Loss Threshold will also be subject to an Embargo.

A Club is under Embargo in relation to a Profit & Sustainability rule breach, is there any circumstances under which that Club can register players?

Each individual case will be determined by the EFL, though considerations will be given in the circumstances of:

• Re-engagement with currently registered players
• Signing an Emergency Loan Goalkeeper
• Academy players
• The Club having less than 24 Established Players

Established Player (Championship Clubs) - A player aged 21 or over as at the 30 June immediately prior to the commencement of the season in which the Club is subject to the Embargo and who has been named in the starting XI on a total of at least five occasions*.

*in EFL League, EFL Cup, EFL Trophy, FA Cup or equivalent competitions for any Club in any equivalent League to the Championship or higher.

How is the number of players these Clubs can acquire managed?

• If the Club has 24 or more Established Players they can only sign new players on a one in one out basis, though this will be dependent upon the circumstances of the individual Club and will be determined by the League.
• Where a Club has less than 24 Established Players they can register players up to the 24 limit, though again this will be dependent upon the circumstances of the individual Club and will be determined by the League.