By Jonathan Davies

Blackburn, Leeds United and Nottingham Forest football clubs have been handed a transfer embargo for the rest of the season after breaching Financial Fair Play (FFP) rules.

The three Championship clubs will not be allowed to sign any new players during the January transfer window, and are expected to have the ban lifted in the summer.

Under the Football League's FFP rules, clubs cannot report losses of more than £3 million and shareholder investment cannot be more than £5 million.

The transfer embargoes will be lifted in the summer if the clubs can prove they have stayed within an operating loss of £3 million for the 2014/15 season.

Blackburn managing director Derek Shaw said: "Whilst the ruling will clearly present some difficulties, we will of course respect the rules of the Football League.

"A lot of effort and hard work has been done to reduce player costs over the last two years, but we have wanted to rebuild and challenge in this division at the same time, and we will continue to do that."

Speaker before the embargo was confirmed, Nottingham Forest manager Stuart Pearce, said: "We are acutely aware of what direction we will go if we are under an embargo. If you cannot go out and buy a player in the transfer market that is always a little bit hurtful.

"But the flip side is that if you have to be cute in the transfer market and get Bosmans and free transfers. We feel we have the scouting network that can cope with that.

"As a football supporter I would not want my club to go bust because of financial overspending, so if the League are putting plans in place to safeguard then long-term future of football clubs then fine; I have no problem with that at all."

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