Not the news Blues fans wanted to hear as the first team begin their pre-season tour in Austria.
The club have been sanctioned with a transfer embargo due to not meeting the deadline with the EFL to sort out a ‘soft embargo’ relating to FFP (Financial Fair Play) , according to Almajir.
It is understood the EFL gave the Blues owners time to fix the situation but they have in turn failed to do so.
This means the transfer of Kristian Pedersen from Union Berlin, that was announced by the club on June 25, will not stand and he will not be a Birmingham City player until the embargo is lifted.
This news comes after disagreements between CEO Ren Xuandong and senior backroom staff over the past few months which has led to the departure of some staff that deal with transfers, resulting in this embargo.
The club and the EFL are yet to comment on this matter.