Following a tumultuous 2020/21 campaign which culminated in relegation to the third-tier, Sheffield Wednesday could be in for a busy summer of transfer activity as they look to prepare themselves for life in a new division.

Owls manager Darren Moore has already decided to make a number of alterations to his side by releasing some of the club's underperformers and will now be aiming to draft in some suitable replacements.

However, with Wednesday still reportedly under a transfer embargo, their options are limited in terms of new signings as they are not able to pay any kind of fee as doing so would breach the rules in place.

Therefore, the Owls currently cannot pay agents or fund loan moves which involve sending a fee to a respective club in order to secure the services of a player on a temporary deal.

Ahead of the upcoming window, a concerning financial update has emerged which could also have an impact on Wednesday's recruitment.

According to The Star, the Owls are reportedly looking into the possibility of furloughing their players over the summer after consulting the Professional Footballers' Association and HM Revenue & Customs for guidance.

Under these terms, Wednesday would be able to claim £2,500 from the government for each player as long they top up the rest of the salary that is owed.

The Owls failed to pay their squad on time for the month of April which unsurprisingly led to a lot of scrutiny for owner Dejphon Chansiri who experienced cash flow issues last year which led to a temporary wage-cap being introduced.

GIVEMESPORT's Joshua Cole says...

This is a concerning update for Wednesday as it outlines the financial difficulties that the club are currently facing following their relegation to League One.

With the prospect of players being placed on furlough, questions will be asked regarding whether the Owls can afford to make any significant adjustments to their squad this summer.

Even if Wednesday's transfer embargo is lifted, Moore may have to focus on the free agent market or loans in order to add to his squad as the club are not in the position to splash the cash.

Whilst the Owls' current wage budget will be cut when a host of their out-of-contract players officially depart next month, they will be under no illusions about how difficult it will be to recruit players between now and August.

Therefore, Moore will need to be extremely shrewd if he is to assemble a team that can challenge for promotion in League One next season.

Read More – Everything you need to know about the summer transfer window!