Hull City will continue to face a transfer fee restriction for two windows, with a potential third window suspended for 12 months, subject to any further rule violations.
Leicester City's Championship rivals were slapped with a transfer penalty by the EFL in July due to unpaid debts owed to Aston Villa for the loan of Louie Barry last season, as well as Manchester City for the loan of Fin Burns. Allegations were also made that they had outstanding payments to local suppliers.
After appealing against the decision and settling their debts, owner Acun Ilicali and sporting director Jared Dublin were seemingly confident they would be permitted to trade as usual.
However, they have been told today that they will not be allowed to pay any transfer or loan fees for the remainder of this summer or during the January window. If there are seven or more days of late transfer payments over the next year, the ban could extend to the summer of 2026.
The club is also required to operate under an EFL-approved business plan, and every deal must receive approval from the league's financial reporting unit before a player can be registered.
Despite these restrictions, Hull have still managed to secure 10 signings, including seven free transfers and three loan deals, and are planning more in the run-up to the deadline. They have started the season well, securing four points from their first two games, drawing with Coventry and defeating Oxford.
With Leicester City facing a potential points penalty over their own spending infractions - charges brought by the Premier League over alleged rule breaches when the Foxes were last in the EFL - the Hull outcome clearly shows that the football authorities are in no mood to be lenient on financial wrongdoing.
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Sky Sports recently reported that there was still "no indication" when a decision on Leicester's penalty was likely to be made, adding that new boss Marti Cifuentes would have to lead the team knowing they could be docked up to nine points at any time.
As for the Hull case, a statement issued by the club which ended in capital letters read: "Following our appeal to the club financial review panel, we have received confirmation that the three-window transfer fee restrictions imposed on us have been reduced to two windows, with the third window suspended. Our justification regarding the payment dates was not accepted by the panel.
"As we have demonstrated in recent weeks, we still remain able to sign players – either on loan or as free agents.
"We want to take this moment to sincerely thank all our fans for their unwavering support during these challenging times. Our unity and solidarity have shown the football world the strength of the Hull City family. CHALLENGES WILL NEVER BREAK US; THEY ONLY MAKE US STRONGER."
According to a report by HullLive: "However you dress it up, this is not an ideal situation for the club, and certainly anything but a good look. There is probably a case for the EFL coming down hard on the club. Perhaps in light of events at Reading and Sheffield Wednesday, they're extra cautious, but it's hard to escape the fact the club have given them reason to be watching them quite so closely."
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