Blackburn Rovers were forced to withdraw from the permanent signing of Duncan McGuire after a direct order from the board of directors to cancel all January deals involving a transfer fee, The Lancashire Telegraph can reveal.

The American striker was announced as a Blackburn Rovers player in a loan-to-buy deal on transfer deadline day after a remarkable turn of events. 

McGuire travelled over to the UK after Rovers reached an agreement with Orlando City for a permanent transfer. However, the deal was cancelled whilst the player was still on the flight.

The 23-year-old landed in England and spent Thursday morning at Kenwood Hall in Sheffield, with Sheffield Wednesday also trying to sign him.

Rovers miraculously recovered the deal as a loan-to-buy, with McGuire travelling in the evening to the Brockhall Senior Training Centre for a medical. The deal was announced at 11pm, subject to international clearance and visa checks.

That deal now hangs in the balance after a paperwork error from Blackburn Rovers. The deal could therefore fall through despite McGuire attending Saturday's 2-1 defeat to Queens Park Rangers.

The Lancashire Telegraph, as well as other outlets, reported that Rovers initially pulled out of the McGuire permanent deal due to fears Adam Wharton's proposed move to Crystal Palace was going to fall through.

Whilst that was a factor, more details have since come to light. The midfielder signed his contract with the Eagles late on Wednesday evening and so going into the early hours of deadline day, that move was finalised, albeit an official announcement didn't follow until later that day.

It's this publication's understanding that a direct order came from the club's board of directors on Wednesday night to cancel all transfers involving a fee due to financial reasons. This was the primary reason McGuire's initial permanent transfer fell through.

It's understood that the order came as a surprise to the recruitment team, who had worked tirelessly to identify McGuire and then negotiate the deal with Orlando City. 

Whilst Rovers were never going to 'splash the cash', those working on transfers expected some of the Wharton funds to be available in January.

Rovers went on to add more players to their squad, including McGuire on loan. Billy Koumetio also arrived in a temporary move and John Fleck signed on a free transfer until the end of the season.

Reports from the United States claim the club paid a loan fee of $700k, for McGuire, with the option to buy at $7m plus $2.5m in add-ons. Those figures are understood to be inflated, though it's unclear whether a loan fee was paid in the new agreement.

This development will cause further concern for Blackburn Rovers fans. The club recorded a 'record sale' through Wharton and yet were ordered not to spend any money on fees in the final 24 hours of the window.

Rovers did spent a fee on Connor O'Riordan

After the Venky's High Court hearing was adjourned for six weeks, the club released a statement assuring fans that the delay would 'not impact the day-to-day funding of the club'. 

Blackburn Rovers were contacted but did not comment.