BLACKBURN Rovers are one of three Championship clubs who will face a New Year transfer embargo after failing Financial Fair Play (FFP) requirements, the Football League has confirmed.

It means Rovers will be unable to sign players for fees in the January transfer window.

But, under certain conditions, they will still be able to sign players on loan and free transfers before the end of this season.

The two other Championship clubs definitely facing a transfer embargo are Leeds United and Nottingham Forest.

Rovers, Leeds and Forest have been punished after exceeding the maximum £8m loss permitted for last season, 2013-14.

But the Football League has confirmed it is in discussions with a number of other Championship clubs over their FFP submissions and will confirm any further transfer embargos, if any, in due course.

Affected clubs will have the opportunity to have their transfer embargo lifted at the end of the season by demonstrating they have stayed within the maximum £6m loss permitted for the current 2014-15 campaign.

Embargoed clubs with fewer than 24 ‘established’ players will still be able to make loan signings and free transfers as long as the total wages per new arrival do not exceed £600,000 a year or pro-rata if signing a short-term contract.

Once an embargoed club reaches the maximum 24 ‘established’ players they will be able to trade in on a one in one out basis providing the player coming in does not earn more than 75 per cent of the wages paid to the player going out. Again, the player coming in will not be able to earn more than £600,000 a year or pro-rata if signing a short-term contract.

‘Established’ players are considered those over the age of 21 who have made at least five starting appearances for their club.

Rovers’ 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.”