Portsmouth officially went into administration on Friday.
The automatic nine-point penalty will virtually condemn them to relegation from the Premier League.
Pompey owner Balram Chainrai took the decision after talks with four interested groups failed to lead to a takeover of the club, which has £70million debts.
Pompey became the first Premier League club to go into administration and the nine-point penalty will leave them on just seven points, 16 behind their nearest rivals.
Here we look at Portsmouth's financial meltdown over the last year...
May 27: Portsmouth accept takeover bid from Sulaiman Al Fahim.
July 21: Al Fahim passes Premier League's 'fit and proper persons' test and immediately joins Portsmouth board, although takeover is not yet finalised.
August 19: Club open negotiations with a consortium fronted by chief executive Peter Storrie over a possible takeover.
August 26: Al Fahim finally completes takeover.
October 1: Club admit failing to pay players' wages on time.
October 5: Al Fahim sells 90% of his Portsmouth shares to Ali Al Faraj.
October 7: Avram Grant appointed director of football.
October 28: Premier League issue embargo on Portsmouth registering new players until they pay off debts to Chelsea and Arsenal for the signings of Glen Johnson and Lassana Diarra respectively.
November 24: Manager Paul Hart sacked.
November 26: Club announce Avram Grant will be their next manager.
December 3: Portsmouth confirm payment of players' wages has again been delayed.
December 4: Club announce players have been paid.
December 5: Grant earns his first points with a 2-0 win over Burnley at Fratton Park.
December 10: Portsmouth respond to speculation over their future by insisting they are not about to go into administration. In a statement they also reveal Her Majesty's Revenue and Customs (HMRC) had been paid £2million and "other historical arrears are being dealt with on an ongoing basis".
December 30: The club deny being formally served with a winding-up petition by HMRC.
December 31: For the third time this season, the players' salaries are not paid on time. The club say the December salaries will be paid on January 5 thanks to a short-term loan.
January 4: Non-playing staff are paid.
January 5: Player payments are again delayed, the club tell the Professional Footballers Association, adding that wages should be processed on January 6.
January 7: Portsmouth's players are paid their December wages.
January 14: Premier League board confirm they will distribute broadcast fee payments directly to Portsmouth's football creditors, both domestic and overseas.
January 19: Portsmouth's application for a winding-up petition made against them by HMRC to be struck out is dismissed by a High Court judge. The club nevertheless releases a statement insisting they are "confident" of winning an appeal.
January 20: The club confirm former player Sol Campbell is suing them for fees and bonuses he is owed.
January 26: Premier League lift transfer embargo.
January 27: Portsmouth sell defender Mike Williamson to Newcastle for an undisclosed fee.
January 28: Official club website is briefly shut down due to failure to maintain payments to Juicy, the company responsible for running www.portsmouthfc.co.uk.
January 29: Club waiting for Younes Kaboul's £5million transfer to Tottenham to go through, and funds to clear, before they can pay the monthly wage bill.
January 30: Kaboul joins Tottenham.
February 3: Portsmouth pay January wages.
February 4: Hong Kong businessman Balram Chainrai's company Portpin take controlling interest in the club from Al Faraj after exercising a clause in their agreement over a £17million loan made to the Saudi.
February 9: Portsmouth fail to agree a deal with HMRC to pay a portion of their outstanding tax bill and reschedule the remainder.
February 10: High Court give the club one week to draw up a statement of its financial affairs as it bids to avoid the HMRC winding-up order.
February 17: Portsmouth present statement of financial affairs at High Court.
February 18: The club confirm they have asked the Premier League for permission to sell players outside the transfer window.
February 20: Bid to trade outside the transfer window rejected by the Premier League.
February 21: Chief executive Peter Storrie reveals a South African consortium is pursuing a deal to buy the cash-strapped club.
February 22: Former owner Sulaiman al Fahim quits as non-executive chairman at Fratton Park and passes on his 10 per cent shareholding to the club's supporters' trust.
February 23: Chainrai confirms Portsmouth will go into administration if they have not found a new buyer by February 26. Earlier, New Zealand-based businessman Victor Cattermole admitted his interest in buying Portsmouth, but said a deal would not be in place before the club's date at the High Court on March 1.
February 25: The club's owner's spokesman confirms Pompey has started the process of going into administration.