Leeds United, Nottingham Forest and Blackburn Rovers have been placed under a transfer embargo after breaking Financial Fair Play (FFP) regulations, the Football League said on Monday.
All three previous English champions, now playing in the second tier Championship, exceeded losses of eight million pounds during the 2013-14 playing season and have been placed under a transfer embargo from January 1. 2015 until the end of the current campaign.
Under the terms of the embargo the three clubs will be unable to sign new players on a permanent or loan basis unless they have 24 or fewer established players.
If they do so then the clubs can only sign a player if the cost per year is less than £600 000.
"Blackburn, Leeds and Forest all exceeded the maximum permitted deviation of eight million pounds – consisting of a maximum adjusted operating loss of three million pounds plus a further maximum of five million pounds of shareholder investment – during the 2013/14 playing season," the Football League said in a statement.
"Each club will have the opportunity to have its FFP embargo lifted at the end of the season by demonstrating that it has stayed within the maximum permitted deviation of six million pounds for the 2014-15 season."
The League also confirmed that Queens Park Rangers, Leicester City and Burnley, who were promoted to the Premier League last season, will be investigated for similar offences.
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