Former FA Cup winners Coventry were hit with 10-point deduction on the eve of the new season after the troubled League One club were left on the brink of liquidation.
Coventry failed to agree a Company Voluntary Agreement (CVA) with the owners of the Ricoh Arena, their former ground, and said in the aftermath that liquidation and a points deduction was expected.
And in a statement later on Friday, the club confirmed the club would enter liquidation and that they had accepted the Football League's 10-point deduction.
Despite the impending liquidation of part of the club, Coventry will be able to begin their League One campaign at Crawley on Saturday after the League transferred their membership share to the Otium Entertainment Group.
The points penalty is the latest blow for Coventry, who famously beat Tottenham 3-2 to win the 1987 FA Cup final.
The Sky Blues will no longer play in their home city as a result of major row over rent payments between the old Coventry City Football Club Limited and Arena Coventry Limited (ACL), the owners of their Ricoh Arena stadium.
Instead Coventry, who will spend the next three years ground-sharing 33 miles (52 kilometres) away at Northampton's Sixfields ground.
The move was not well received by fans, with only about 200 reportedly buying season tickets.
Tim Fisher, Coventry's chief executive, apologised for the club's predicament, but insisted they still have a bright future.
"We know that this has been an extremely difficult summer for our supporters and we are truly sorry that all of the attention has been off the field rather than on it," he said.
"There has been a great deal of uncertainty surrounding the club's future but this decision by the Football League means we now have certainty and the club's future is secured.
"We can now get on and put our future plans into action which means building and owning our own stadium in the Coventry area.
"None of us want to start the season away from the club's home city but previous refusals to take up our offer of negotiation or arbitration meant we were forced to find a ground to complete our fixtures.
"It has been a very difficult time but Coventry City Football Club moves forward."