Championship cub handed transfer embargo until January 2027 'as a result of late payment of £1m debt to Premier League side'
The embargo will mean that they will be unable to sign players for the following three windows but they do have the right to an appeal.
Hull City took to X on Friday to announce the news, posting: 'we can confirm that we have received notification from the EFL that we are subject to a transfer embargo and a three-window fee restriction with immediate effect.
'We will appeal the three-window fee restriction and are confident of resolving the matter as soon as possible.'
There have been concerns over the club's finances and talkSPORT report that the embargo is primarily the result of a late payment to Aston Villa.
The club were late in paying the £1m owed as part of the deal to bring in Louie Barry on loan in January
Barry joined the Tigers for the second half of the season but suffered a season-ending injury just a month later.
The club went on to escape relegation on goal difference following a final day draw with Portsmouth.
Barry played just four games for the club and the move could now cause some serious long-term damage.
The news comes in a week when owner Acun Ilicali told supporters at a question and answer session that the Tigers do not have money problems.
Speaking to BBC Radio Humberside on Monday, Ilicali also dismissed concerns and questions about the club's mounting debt - that in the last set of accounts showed losses in excess of £60m.
"We don't owe any money to anybody - the club owes money to me and I am the owner," Ilicali said.
"I am spending from my pocket but we have extremely good players in the squad. I can say to the fans do not be under stress, we are fine."
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