Cardiff have been placed under a Football League transfer embargo for a breach of Financial Fair Play rules.
The embargo will be in place for the rest of the January transfer window and will see them lose out on a permanent deal for £1 million target Tony Watt, although the Charlton striker's loan deal could be extended after their Championship visit to Wolves on Saturday.
#CardiffCity Club Statement, 15th January 2016 >>> https://t.co/evTbi4Hnf6
- Cardiff City FC (@CardiffCityFC) January 15, 2016
Cardiff, who were relegated from the Premier League at the end of the 2013-14 season, say they "have complied with the FFP requirements for season 2014-15 -- contrary to the League's position."
Bluebirds boss Russell Slade has significantly reduced playing costs since being appointed in October 2014, with the club's biggest earners having been moved on.
"Whilst extremely disappointed that the Football League has decided to take this action, we will remain co-operative and compliant with the League's position in respect of Financial Fair Play," said a Cardiff statement.
"Having fully disclosed all matters in respect of our FFP position for 2014-15 and having taken independent expert advice, it is our firmly-held view that Cardiff City Football Club has indeed complied with the FFP requirements for season 2014-15 -- contrary to the League's position.
"As such, further advice will be sought, prior to a decision being made internally as to whether or not an appeal will be lodged.
"The embargo, now in place [albeit subject to possible appeal], will stay in effect for the remainder of the January 2016 transfer window.
"Cardiff City Football Club again expects to trade within the set FFP limits for 2015-16 and therefore anticipates full participation in the summer 2016 transfer window."