The controversial Italian says that the uncertainty hanging over him is preventing them from bringing in players on loan.
Cellino has an appeal being heard today with the Football League after being banned last month due to a tax conviction in Italy in relation to a yacht. If unsuccessful he will be have to resign from the Leeds board until March when his conviction will be considered spent under UK law.
The owner says the team's plans are being affected, as players he has approached want stability.
He said: "This is hurting us. I try to sign players but many players want to know if I’ll be here. And if not, what then? We have the embargo and that hurts us too. We aren’t free to buy the players we want.
"A couple of new signings would help the team. New faces would take a little bit of pressure off. But I don’t want to make concessions or sign someone who is no good, just to show off. We need good players."
It's likely Cellino's comments refer mainly to the Italian based players he has been trying to bring to England, but the real selling point should be the team and the head coach.
This is an example of why Neil Redfearn should be given greater input into signings, so he can sell his vision to players, rather than be reliant on an owner who has a ban hanging over him at present.