Derby County are to be deducted 12 points by the English Football League (EFL) after the Championship club filed for administration.
The EFL said in a statement: "With confirmation from Derby County Football Club that they have filed a notice of intention to appoint administrators, the EFL can tonight confirm that the club will be subject to an insolvency event under the terms of the EFL’s Regulations.
"As a result, the club faces a 12-point deduction.
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"Once the EFL has received formal notification of the application, the deduction will be applied."
Derby confirmed they were moving into administration earlier on Friday.
A statement read: "Derby County Football Club today announced that the club, the ultimate holding company of the group, and all of the subsidiary companies have filed notices of intention to appoint administrators.
"This action was made necessary by a number of developments. Last week, it became clear that the process which has been underway to identify a purchaser for the club likely would not be productive over the near term, despite the number of negotiations with credible parties.
"Because the Covid-19 pandemic has had a severe impact on the revenues and profits of all of its businesses, the club has been unable to service its day-to-day financial obligations. The directors had no choice but to make the tough decision to take this action and protect the club.
"The irony is that the club’s financial forecasts show the emergence of a financially sustainable picture. Absent the Covid-19 pandemic, we undoubtedly would have been able to trade through."
The club are already being investigated for breaking accounting rules in 2016, 2017 and 2018 which could see them handed a further points deduction.
Derby were fined £100,000 and reprimanded in July this year for the breach.
If the points deduction is implemented before Derby's game against Stoke on Saturday afternoon, they will move down into 24th place on -5 points.
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