The transfer embargo is playing havoc with Andy Thorn's attempts at rebuilding his side as they prepare to bounce back to the Championship.
Thorn had hoped to sign one of the club's former Academy players on a free transfer from Shrewsbury, but striker James Collins decided he needed the security of a contract and opted to sign for Paulo Di Canio's Swindon Town instead.
City lost out on signing midfielder David Syers on a free transfer from Bradford City last week when the player decided he too couldn't afford to wait F the embargo to be lifted and joined Doncaster Rovers.
Collins, born in the city, was a former Coventry Academy player and supported the club as a schoolboy was keen on rejoining his hometown club, and Thorn was eager to add Collins to his squad to partner Cody McDonald up front.
It is thought that Collins had been given assurances that Coventry City would soon be out of the transfer embargo, but when he was offered a deal at Swindon, he decided he could not afford to wait any longer. Yesterday Di Canio announced the signing of Collins along with another striker Andy Williams from Yeovil and winger Gary Roberts from Huddersfield.Collins' agent Joe Kennedy confirmed, "He had various options and there were talks with Andy Thorn. James has always spoken highly of the club.
"It's his boyhood club and somewhere that has a special place in his career and he would like to go back there and it was definitely an option for him to sign for them this year."
The apparent inability to sign players on free transfers could influence those players already at Coventry who have been offered extended deals to leave the club rather than agree to stay. Defenders Richard Keogh, already the subject to interest and bids from other clubs and Martin Cranie could opt to walk away from a club seemingly paralysed by the embargo.