The second tier club faces a transfer embargo from the Football League, unable to commit funds to bringing in either permanent or loan signings until January 2027.

The Athletic report that the EFL were in regular contact with Hull in the summer, requesting funding guarantees to prevent the club from being placed under a business plan.

Excl: Hull City hit with transfer embargo by the EFL as fears grows over Championship club’s financial stability. Embargo imposed over late payment of around £1m to a Premier League club. Fair to say alarm bells are ringing #hcafc https://t.co/dS7HDJQusD

— John Percy (@JPercyTelegraph) July 3, 2025

This is due to concerns over financial stability, including alleged non-payments to clubs and suppliers, notably nearly £1 million owed to Aston Villa for striker Louie Barry’s loan.

Earlier this week, Hull saw a deal for Barry collapse after a breakdown in negotiations with the player’s representatives.

An agreement had been reached for the Tigers to sign Barry in a permanent £3.5m deal, but failure to clear debts already that Aston Villa were owed has put a stop to those plans.

This will also end their pursuit of Cardiff’s Callum O’Dowda. Only no fees or free agents can be signed with talks ongoing with Oli McBurnie.

There are concerns over future instalments agreed with other sides, the EFL has now taken action by imposing a registration embargo.

The embargo restricts Hull from registering new players without EFL approval, limiting them to free agents or no-fee signings.

The club plans to appeal and is in talks with the EFL, with further sanctions possible, including a stricter business plan or extended transfer ban.

Owner Acun Ilicali, who acquired Hull for £30 million in 2022, insists there are no major financial issues despite cash-flow concerns, attributing problems to technical issues and loans owed to him.

Ilicali told supporters at a fans’ forum earlier this week: “We don’t have financial problems. It’s true we are spending too much money.

“Sometimes you can have little technical problems. The club has loans, but those loans are to me. I will not ask for all the loans.”

Hull, who avoided relegation last season, recently replaced head coach Ruben Selles with Sergej Jakirovic.

Also under embargo in the Championship is Sheffield Wednesday, who have failed to pay players in three of the last four months and owe outstanding money to HMRC.

“are deeply concerned by the recent news of a transfer embargo imposed on Hull City AFC by the EFL, as reported by The Telegraph on July 3, 2025. The reported financial issues, including alleged non-payments to other clubs and local suppliers, raise serious questions about the club’s financial management under owner Acun Ilicali.

“While we acknowledge Mr. Ilicali’s significant investment since his 2022 takeover, the reported cash-flow problems and potential for further sanctions, such as a three-window transfer restriction, are alarming. The collapse of the deal to sign Louie Barry and the constraints on registering new players only heighten our concerns about the club’s ability to compete in the Championship.

“We urge the club’s leadership to provide transparency and clarity to supporters regarding the financial situation and the steps being taken to resolve these issues. The Trust calls on Hull City AFC to engage constructively with the EFL to ensure compliance and avoid further penalties that could jeopardise the club’s future.

“Hull City fans deserve a stable and competitive club. We will continue to monitor this situation closely and advocate for the best interests of our supporters and the long-term sustainability of our beloved club.”

If you’re wondering why Sheffield Wednesday & then Hull are subject to transfer embargoes, the WEEKLY Championship operating losses may give some explanation. Player sales (erratic and volatile) and owner subsidies (also at times erratic and volatile) keep the lights on pic.twitter.com/CAdTi7VtYJ

— Kieran Maguire (@KieranMaguire) July 4, 2025

: So Acun knew we owed this money to @AVFCOfficial So why then would you not just give them what they wanted with the purchase of Louie Barry and avoid all this shit, that we’ve now got on your hands. As a Blackburn Rovers player once said #Shambles #hcafc

: The Allams might’ve been huge bellends with zero clue on football matters, but they never put the club in a position where it could seriously die. Just saying. #hcafc

: More clubs in financial trouble since psr/ ffp was brought in. But it’s for the good of the game supposedly 🙃

: No financial issues he said.

: Time to go @acunilicali

: Doesn’t make any sense, why would we ready to pay £3.5 mil for Barry if we couldn’t afford to pay £1 mil? Plus Acun said the only money the club owed was to him? Taking it all with a pinch of salt until the EFL or City say something. Seems a bit off. #hcafc

: City were in THE perfect position to go to the next level when we won league one. No debt, no issues, clean slate to work with. In 4 years Acun ilicali has managed to complete wipe out this clubs potential, loaded us with debt and put our future at risk. Staggering. #hcafc

: owners come and go the fan’s will always be there 🧡 #hcafc

: Clarity quickly @hullcity! Couldn’t care less about villas 1 mill. It’s worrying that it’s reported local companies are not being paid. If that’s the case then it’s bad!! Really bad!!! Needs sorting and quickly. #hcafc

: When the club does say something today, aside from the obvious (answers to questions re our financial stability) the board & owner also has to acknowledge their mistruths. From talk of 8/9 signings, acting early in the window and righting last seasons failings to this… #hcafc 🫣

: you can see now why it was vital we stayed up last season if we had gone down probably would have been a worse situation #hcafc

: Shit to see Hull maybe in the gutter aswell, understand the fact that them and Wednesday found it funny with us but realistically it’s shit seeing decent yorkshire clubs going down the drain. Proper footy here in yorkshire. #LUFC #HCAFC

@JoshyNewcombe: Could see this coming for a while tbh. There have been warning signs that the owner is a crackhead for time. Sacking two excellent managers and gambling a lot of brass on a new squad every season is unsustainable in the championship. Feel for the fans as usual.