The Premier League has implemented a transfer ban on Portsmouth restricting the club from making new signings until they settle transfer debts owed to other English clubs.
The scenario developed after the Premier League blocked Portsmouth manager Paul Hart’s attempt to sign midfielder Eugen Bopp.
The League has ruled that they will not lift the ban until the club, who are bottom of the Premier League, have settled their debts.
Portsmouth spokesman Gary Double said the problem ‘should be resolved quickly’ but the ban will raise fresh questions about the club’s finances.
Saudi businessman Ali Al Faraj took over at Portsmouth three weeks ago, buying a 90% stake from previous owner Sulaiman Al Fahim.
Israeli mogul Levi Kushnir and Hong Kong-based Balram Chainrai have subsequently emerged as potential investors in the club and have attended Portsmouth’s last two matches.
The transfer ban is the latest in a long line of off-the-field problems for the club.
There was a delay in the players’ wages being paid in September, while the club was on the brink of administration in August.