Birmingham City, Derby County, and Sheffield Wednesday are among 10 Championship sides to have been put under a transfer embargo, according to a report from the Daily Mail

The report claims that Blackburn Rovers, Cardiff City, Coventry City, Huddersfield Town, Luton Town, Reading, and Stoke City have also been handed the sanction by the EFL – with the impact of the current global and national circumstances seemingly taking hold.

It is believed that some clubs are accepting the penalty now but are optimistic they can trade their way out of it when the summer window opens, though an unnamed league source has warned the Daily Mail that selling players to Premier League clubs could be difficult this summer.

Coventry released a statement this morning confirming that they have been put under a transfer embargo but noting that it is for administrative reasons and that it will be removed when they file their accounts within three months of the February deadline – an extension offered by the Government.

The statement on the Sky Blues website noted that it "will have no effect on planned transfer activity in the upcoming transfer window".

It is understood that Huddersfield and Stoke have both been handed the sanction due to administrative reasons, rather than financial issues, with the Terriers now off the list and the Potters expected to follow soon.

The Verdict

This looks like a big blow for a number of Championship sides and you have to hope that they get the proper support because it seems the impact of the current circumstances are taking hold.

Coventry's announcement would seem to confirm that clubs are indeed facing penalties though we await responses from the other sides named.

It's been a difficult 12 to 14 months for EFL clubs but with optimism over the return of fans later this season, many will have been hoping that the summer would offer them a chance to look to make some positive moves looking forward.

Supporters will be hoping this update doesn't obstruct that.