Derby County have been docked 12 points by the English Football League (EFL) amid the club's struggles with financial problems.
The club, managed by former Manchester United star Wayne Rooney, are losing upwards of £1.3 million ($1.8m) per month according to owner Mel Morris.
Morris, who claims to have spent over £200m ($273m) of his own money in a bid to gain promotion to the Premier League, cited the financial impact caused by the Covid-19 pandemic as a factor in the club's monetary woes.
What has been said?
Confirming the 12-point deduction on Wednesday, a statement from the EFL reads: “The EFL can today confirm that, in accordance with EFL Regulations, a 12-point deduction has been immediately applied to Derby County Football Club’s 2021-22 season total.
“This follows the lodging of the Notices of Intention to Appoint Administrators on Friday evening, and the subsequent announcement that the process of appointment was completed earlier today.
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“The League has already held initial constructive discussions with the Administrators and will remain in regular dialogue with them as they seek to find the appropriate solutions required to assist the Club as it navigates its way out of insolvency.
“In addition, the League will today be contacting representatives of Rams Trust (the Derby County Official Supporters Trust), DCMS, MPs from the Derby area and other relevant stakeholders inviting them to meet the League to discuss the Club’s position now that Administrators have been appointed.”
EFL chief executive Trevor Birch added: “I appreciate that this is a challenging and concerning period for everyone associated with the Club, particularly the staff and supporters, and it is our intention to work proactively with the Administrators and all relevant parties with the objective of securing a long-term and viable future for Derby County.
“We will endeavour to provide timely and relevant updates as appropriate and as and when events unfold over the coming weeks.”
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The bigger picture
Derby had been sitting 12th in the Championship before the announcement, having amassed 10 points from eight games.
Now, however, the Rams have dropped straight to the bottom of England's second tier and will continue to talk with administrators to look for a solution to their financial problems.
Andrew Hosking, managing director of Quantuma, the firm in charge of restructuring Derby's outgoings, told Sky Sports: “Covid-19 has had a significant impact on the finances of the club and its long-term ability to continue in its current form.
“We recognise that with the commencement of the 2021-22 season last month, this news will be of concern to stakeholders and fans, in addition to the city of Derby and the wider football community.
“We are in the early stages of assessing the options available to the club and would invite any interested parties to come forward.
“Our immediate objectives are to ensure the club completes all its fixtures in the Championship this season and finding interested parties to safeguard the club and its employees.”