Crystal Palace have been hit with a transfer embargo by the Football League because they owe some of last season's squad signing-on fees and bonuses.

According to today's Daily Mail, the former Eagles players owed money include John Oster, James Scowcroft, Paul Ifill and Shefki Kuqi.

Chairman Simon Jordan insisted the existing squad had been paid in full after he pumped £5 million in to the club to help with running costs.

"This summer has been difficult for Palace and therefore for me," Jordan said.

"We had a poor season and attendances were down.

"I have stepped in to bankroll the club to the tune of £5million between May 20 and July 31.

"I don’t have a board of investors pumping money in.

"Most clubs would have gone into administration but ours hasn’t because I stood up and made payments to hold the squad together.

"Most Palace fans will find it perplexing having finished 15th, but there are bonuses due and severance payments outstanding to ex-players.

"This doesn’t apply to the existing squad. Everyone at the club has been paid."

As Palace prepare for Saturday's season opener against Plymouth, Jordan insisted that the embargo was not a direct result of missed payments, and that the summer signings of Freddie Sears, Darren Ambrose and Stern John will not be affected.

However, the effect the embargo will have on the prospective signing of Claude Davis, who is awaiting a work permit to secure his move from Derby, remains to be seen.

A spokesman for the Football League said they do not comment on transfer embargoes.