Luton Town not facing 'financial armageddon' despite being placed under transfer embargo

Kenilworth Road in Luton. Credit: PA

Luton Town have moved to reassure fans that they will still be able to buy new players this summer - despite being placed under a transfer embargo.

A report in the Daily Mail on Tuesday revealed the Hatters are one of 10 Championship clubs who have been hit with the punishment.

However, in Luton's case, the embargo was down to them failing to submit their club accounts on time - rather than any financial issue.

Companies across the country were given a three-month extension by the government to file their accounts due to the impact of the coronavirus pandemic, but the EFL still wanted the accounts to be submitted by the end of March.

Luton Town have lost their last two Championship games. Credit: PA

After Luton failed to meet that deadline, they were placed under an embargo by the EFL.

The report in the Mail claimed that there are now fears that many clubs in the Championship could be facing 'financial armageddon', but the Hatters say they are confident that the situation at Kenilworth Road will soon be resolved.

"Our first embargo for a decade is simply an anomaly brought about by an unsynchronised timing of financial reports due to the pandemic," a statement read.

"We would like to reassure all of our supporters that this situation will not affect any of the club’s plans for the summer transfer window, which does not open until the end of the current season, and makes no difference to the day-to-day running of the club currently.

"There is certainly no 'financial Armageddon', as the article's headline sensationally claims, at Kenilworth Road."