Perak FC are in a race against time to clear RM1,773,532.50 (excluding interest) in salary debts before the M-League transfer window ends on Feb 22.
The Premier League club are said to owe their former foreign players Jeon Hyo Seok US$100,000, Leandro Dos Santos US$136,800 plus RM41,000 and five per cent interest, Raianderson de Costa Morais US$122,400 plus RM14,000 and five per cent interest, and player agent Valdir de Souza US$51,000.
Since Perak have exceeded the deadline in their appeal to Fifa, a transfer ban has been imposed on the Bos Gaurus. As a result, Perak will not be allowed to register any new signings, local or foreign, or get players on loan.
The transfer ban also applies to Perak's other outfits, including their Youth Cup and President's Cup teams.
FAM secretary general Saifuddin Abu Bakar confirmed the matter and disclosed that they had met with Perak FC officials on Friday.
"They won't be able to register any new players and can only use their existing players should they compete in the Premier League," said Saifuddin.
"We have informed Perak that they have to clear their arrears if they want to register new players, and have advised them accordingly."
If Perak are unable to settle their debts before the Feb 22 deadline, they will be forced to play with their remaining players from last season's squad, said to be around only 14-15 players.
Every league in the world has a minimum requirement for players registration, and the Malaysian Football League (MFL) is no exception as its competition guidelines state that teams must have a minimum of 20 players. These include a minimum of three goalkeepers and a maximum of five import players.
MFL chief executive officer Stuart Ramalingam said the Fifa and FAM sanctions imposed on Perak are out of their jurisdictions, but they do not want to punish them based on technicalities.
"MFL must be practical with the situations of each club, and in this instance, it's Perak under new management and impacted by this outstanding matter," said Stuart.
"We don't want to punish Perak based on technicalities but instead help the team maintain their position in the league."
Stuart said if Perak do not have the required minimum 20 players, an exemption could be made but it is subject to the MFL board of directors' decision.
"Hopefully we can play a part in the discussion that's being held while waiting for Perak to come up with a plan to resolve this. We hope that it will come by early next week," said Stuart.
If Perak are forced to drop out of the Premier League, the second tier will be reduced to nine teams. They are FAM-NSC Project Squad, Johor Darul Ta'zim II, Kelantan, Kelantan United, Kuching City, Police, Selangor II, Terengganu II and UiTM FC.