Coventry City are now under a rolling embargo imposed by the Football League.
The transfer embargo the club was under for failing to file their accounts on time has been lifted and replaced with a rolling embargo which means that City can only spend on players upto a limited set by the Football League based on its predicted income.
The salary of the player has to be in keeping with the Football League limit of total salary for players, so no signing Wayne Rooney but City can sign players, as long as they do not exceed the undisclosed limit.
Should the limit be broken then any new registrations would be refused by the league.
More on this; http://www.coventrytelegraph.net/news/coventry-news/football-league-lifts-transfer-embargo-5675626