Morecambe fined but transfer embargo lifted
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Morecambe start the new EFL season away at Walsall on Saturday,10 August
- Published
Morecambe have had their transfer embargo lifted by the English Football League but must pay a fine of £5,131.82 for failing to meet their payment obligations.
The League Two side were placed under a registration embargo in March over non-payment of a VAT bill and were deducted three points in April for failing to stick to an agreement with the EFL earlier in the season linked to the late payment of players.
They were subsequently fined in June and given restrictions for the next three transfer windows.
However, the club, which has been up for sale since September 2022, appealed against the ruling and an independent disciplinary commission ruled in their favour while upholding the fine.
Their transfer restriction has been suspended for two years and reduced to one window.
The Shrimps, who finished 15th in League Two last season, are now able to register new players for the forthcoming campaign.
They said in a statement: "All parties recognised the exceptional circumstances, and evidence provided by His Majesty's Revenue and Customs confirmed that Morecambe Football Club had done nothing wrong under HMRC guidelines.
"HMRC raised an assessment against the club regarding a change in treatment by them of a supplier's invoices, raised and paid in good faith.
"This change came months after the submission of the normal VAT return, and due to the size of the sum and its impact on cashflow, a 'time-to-pay' agreement was reached between the club and HMRC.
"EFL rules are clear on the treatment of time-to-pay agreements, but due consideration was given by all, resulting in a reduction in the original sanction.
"Morecambe Football Club has this week, in accordance with the time-to-pay agreement with HMRC, fully settled its liabilities."