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Coventry City said on Friday they were on the verge of liquidation, which will trigger a 15-point deduction just 24 hours before their 2013-2014 League One season begins.
The Sky Blues' already unfavourable financial position took a turn for the worse when the owners of the 32,600-seater Ricoh Arena rejected a Company Voluntary Agreement (CVA) at a creditors' meeting on Friday morning
The CVA would have secured payment to creditors enabling the hard-up English Midlands club to exit administration.
Ricoh Arena owners Arena Coventry Limited, which includes the local authority Coventry City Council, have been embroiled in a bitter rent row with the 1987 FA Cup winners.
This has resulted in City agreeing a groundshare with Northampton Town 33 miles (52 kilometres) away for the 2013-14 season.
The move was not well received by fans, as only about 200 have reportedly bought season tickets.
In the wake of the failure to reach a deal on a CVA, Coventry City will now meet the Football League to discuss their future.
A statement on the club's website ccfc.co.uk said: "It is with great regret that a proposed Company Voluntary Agreement has been rejected by Arena Coventry Limited.
"It means CCFC Ltd is likely to be put into liquidation which is expected to result in a points penalty for the club going into the new season.
"The club will hold urgent meetings with the Football League this afternoon to go through the next steps for the football club."
Coventry, relegated to third-tier League 1 for the first time in almost half a century in 2012, finished in mid-table last season.
They open the 2013-2014 campagin against Crawley Town on Saturday.