The Premier League are to divert Portsmouth's £7million share of the latest television revenue payments to several other clubs owned money by the south coast outfit after they failed to cover debts.
The Premier League's board have spent the past two days considering what action to take after reviewing Portsmouth's current position as the club desperately sought fresh financing.
But they have failed to convince the league they have the money to cover around £10million in debt to clubs both in the Premier League and overseas.
The Premier League's decision is the latest blow for Pompey's owners, who are fighting a winding-up petition served on them by HM Revenue and Customs before Christmas.
The club is due to go to court to argue the VAT portion of their massive tax debt is too high by some £7.5million.
Portsmouth have failed to pay their players on time three times this season, and there are growing fears the club may be forced to go into administration.
Ahmed Al Faraj, the brother of club owner Ali Al Faraj, has pleaded for patience from supporters as the new regime attempt to turn the club around.
He told Portsmouth's The News: "We need more patience from the football fans and the people to give us a chance.
"It is not right to be criticised for two months, that is not fair. We need six months or a year, after that they have the right. It's very hard but we are confident.
"Be patient with us, give us your support. We don't have anything to hide."
Copyright (c) PA Sport 2009, All Rights Reserved.
Do YOU want to write for GiveMeSport? Get started today by signing-up and submitting an article HERE: http://gms.to/writeforgms