Burnley have been placed under a transfer embargo by the English Football League - just three months before the window re-opens.
The Championship club confirmed the news on Sunday evening. Burnley claim the "immediate" embargo was introduced after the late submission of their financial accounts to the EFL but insist they are "confident" the situation will be resolved "swiftly".
Burnley are managed by Manchester City legend Vincent Kompany. The Clarets are on course to win the Championship title and return to the Premier League at the first attempt, as they sit 13 points clear of Sheffield United in second with just 10 games left.
Burnley, who were relegated from the Premier League on the final day of last season, issued a statement to reassure their supporters on the matter.
"We would like to share with our supporters the disappointing news that the EFL are placing the club under an immediate transfer embargo," it reads. "We believe transparency in these matters is paramount and we want to explain why this has happened.
"In our continued efforts to improve and move forward Burnley Football Club we made the decision to change our auditors in November and the transition has taken longer than we anticipated.
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"We can confirm that we have provided draft accounts and financial information to the EFL’s Club Financial Reporting Unit and we continue to have regular dialogue with the unit to ensure we remain as open and as transparent and answer any questions the league may have.
"We believe the EFL will have no issue with the detail of our accounts other than their late submission and fully understand and support their position and efforts to sanction any club who fails to comply with any of their regulations.
"Both the club and our new auditors are confident this can be resolved swiftly and we hope our submission will be made next month at which point the embargo will be lifted. We once again wish to assure supporters this will have no detriment to the ongoing success and development of the club as we move forward."
Burnley's transfer embargo is unlikely to have any impact on their promotion push, as they sit 17 points clear of Middlesbrough in third. Kompany will want the situation resolved by the summer to allow him to build a squad capable of staying in the Premier League.
Burnley's six-year spell in the Premier League under Sean Dyche came to an end last May. Dyche was sacked just before the end of he season and his temporary replacement Mike Jackson failed to keep the club afloat after a 2-1 loss to Newcastle on the final day.
Eyebrows were raised when Kompany was named as Dyche's permanent success last summer, but the Belgian has done a brilliant job at Turf Moor. Burnley have dominated the Championship and will be looking forward to a promotion party in the near future.
