Coventry City under transfer embargo until money repaid to HMRC

The pitch at the Coventry Building Society Arena was ruled unsafe after being used for rugby sevens during the Commonwealth Games

Championship side Coventry City are under a transfer embargo while they repay money owed to HM Revenue and Customs (HMRC).

The club were forced to postpone their first three home league games this season as the pitch was ruled unsafe.

Chief executive Dave Boddy said that caused a "significant impact" on cashflow, though repayment is scheduled to be completed by December.

"This agreement with HMRC will help us in the running of the club," he said.

"While we are unable to sign players until December, I would like to reassure fans that the timing of this agreement means that we can address this issue now and that any transfer activity in the January window will be unaffected."

The postponement of a further home game in September, following the death of the Queen, meant four of the Sky Blues' first five Championship matches at the Coventry Building Society Arena did not go ahead when scheduled.

Boddy said the club have already paid three of the six instalments owed to HMRC under a 'time to pay' arrangement, agreed last month.

Coventry, 22nd in the second tier, are now looking at alternative venues for home matches, with the company that runs their ground on the brink of administration - although they still hope Tuesday's game with Blackburn can be played at the stadium.

Arena Coventry Limited (ACL) has been given until Monday to secure funding or a new buyer for the stadium or it faces administration - while an offer for Wasps' men's rugby union side was accepted on Sunday, BBC Coventry & Warwickshire understand the prospective takeover does not include the CBS Arena.

"The Wasps/ACL position has presented some serious challenges to the football club and the sporting performance, and distress to our supporters and is continuing to do so," Boddy added.