OLDHAM Athletic have been placed under a transfer embargo by the EFL.

It has been confirmed that Latics, Scunthorpe United and Swindon Town are the three League Two teams placed under restrictions ahead of the new season.

Oldham's embargo relates to a loan agreement.

This means that the club is unable to pay any transfer fees this summer and is only permitted to sign players released by other clubs - and therefore a free transfer - while also falling within the financial restrictions that the EFL impose. Latics can make loan signings but only for half a season, and cannot pay fees to acquire loan players or pay additional wages on top of the salary the player receives at their parent club.

Any further signings could only be registered until the end of the season.

Latics have signed five players so far this summer - all on free transfers.

Striker Hallam Hope, defenders Sam Hart, Jordan Clarke and Harrison McGahey, and goalkeeper Jayson Leutwiler make up the quintet who have all penned deals at Boundary Park as head coach Keith Curle looks to build a squad that can challenge at the top end of League Two next season.

Clarke penned a one-year deal, with Hope and Hart signing for a year with a further 12-month option. Leutwiler and McGahey, however, penned a two-year deal.

As part of its Embargo Reporting Service, the EFL has listed the reasons for the embargo.

Oldham Athletic: Conditions under monitored loan agreement

Scunthorpe United: Conditions under monitored loan agreement

Swindon Town: Regulation 16.2 - Failure to provide audited annual accounts; Regulation 16.3 - Annual Accounts not filed with Companies House; Regulation 17 - Defaults in payments to HMRC; Article 48 - Non-payment to Football Creditors; Rule 10.1 of League Two Salary Cap Management Protocol - Failure to submit SCMP Calculation; Conditions under monitored loan agreement.

Latics' embargo was revealed after the club submitted abbreviated accounts for the year 2019/20, indicating a modest loss of £75,000 despite showing no profit or loss account.

Kieran Maguire, podcast presenter and author of The Price of Football, said the figures released were not thorough enough to give an accurate indication of the state of Latics' finances.

Speaking to The Oldham Times he said: "I think the problem is they put out so little information, and I'm not exactly convinced that it's reliable information, because last year they went and changed all the numbers.

"It's difficult to have a lot of confidence.

"They're unaudited figures, there's very little information there.

"I think the club could put a lot of minds at rest by just being more transparent, but they don't seem to welcome any scrutiny."

Shedding light on their current situation, in a club statement Scunthorpe United said: "Scunthorpe United can confirm that it was an applicant and recipient of an EFL Monitored Loan that was available to League One and League Two clubs earlier this year.

"One of the general principles of the loan was that it would not be available to Clubs to fund player transfer fees and player wages.

"As a result all Clubs accepting the loan are subject to an embargo that allows them to have a squad size and playing budget in line with agreed limits that enable that club to fulfil its fixtures.

"The specific limits placed on Scunthorpe United by this embargo are within the parameters already set internally for the 2021/22 season in terms of squad size and budget."

After being approached for a comment, Oldham Athletic released the following statement: "Oldham Athletic can confirm it is a recipient of an EFL Monitored Loan Agreement which has been offered to clubs based on a three-year business plan to demonstrate financial sustainability over this period.

"As a result of accepting the assistance the club is subject to an embargo, for a smaller period of time, but it still enables those under the same sanctions to function under certain limitations to fulfil fixtures and be competitive in terms of signing players that are available.

"The club understands the concern this will have caused and wants to reassure supporters that it has taken the ruling into account during its ongoing recruitment process before agreeing to the loan."