Birmingham City have been placed under a transfer embargo and haven't been able to register new signing Kristian Pedersen.

The left-back recently joined from Union Berlin for but the EFL declined to register him according to today's Mirror's live blog (13:53).

That's because they have placed Blues under a transfer embargo following their big spending spree 12 months ago when Harry Redknapp was in charge.

The likes of Jota, David Stockdale, Harlee Dean and Cheikh N'Doye joined on big salaries and some commanded hefty fees, as the West Midlands side looked to push for promotion.

However, things didn't work out at all on the pitch and Blues ended up surviving on the final day. Yet, they spent significantly more than they were allowed to under FFP regulations and cannot sign new players now.

That will be a major blow to current boss Garry Monk who had been lining up several new signings, including Ipswich Town keeper Bartosz Bialkowski.

It also means he may need to reconsider his stance on five players, including David Stockdale and Jonathan Grounds, who had been put up for sale as Blues squad is very short in certain areas.

The Verdict

This is extremely bad news for Birmingham. After Monk kept the side up, the fans were understandably optimistic about what next season could bring.

However, this is obviously going to be a massive stumbling block as they need a lot of new players if they want to be competitive near the top.

It could also have bigger implications, such as Monk's own future. Either way, everyone at Blues needs this sorted as soon as possible.

Thoughts, Birmingham fans? Let us know in the comments below.