Sheffield Wednesday have been placed under an EFL registration embargo for failing to make a payment to HMRC, according to The Telegraph reporter John Percy.
It means the club will not be able to register any players without prior written consent.
With the transfer window closed, Wednesday will not be greatly affected by the punishment.
However, the Yorkshire outfit must sort the issue ahead of the January transfer window when they will try to bring in new players for squad improvement.
The Owls are going through a difficult period this season. They are bottom of the Championship standings after collecting three points from 13 matches.
The club dismissed Xisco Munoz earlier this month, installing Danny Rohl as their new manager.
But the German boss has failed to revive their fortunes, with the team losing the opening two matches of his reign against Watford and Plymouth Argyle.
The relationship between fans and owner Dejphon Chansiri is also at an all-time low following the Thai businessman’s extraordinary rant last month.
Chansiri blasted supporters for their lack of respect and said he would no longer put money into the club.
Wednesday returned to the Championship in dramatic fashion at the end of last season.
They pulled off one of the greatest comebacks to overcome Peterborough United in the play-off semi-final before defeating Barnsley in the final.
But a disappointing start to the 2023-24 season means the Owls are now favourites to go down to League One.
