Portsmouth have confirmed they have gone into administration.
The move, as expected, follows a failed takeover of the Barclays Premier League club, which has estimated debts of around £70million debts.
Administration will bring a nine-point penalty for the south-coast club, with the punishment virtually condemning them to relegation to the Coca-Cola Championship.
A statement on the club's official website, www.portsmouthfc.co.uk, confirmed the club entered administration at 10.20am on Friday.
Administrator Andrew Andronikou, of insolvency experts UHY Hacker Young, has started the process of cutting costs at the club to try to keep it as a viable entity.
A major sell-off of players and the prospect of a long period of rebuilding in the Championship now looms.
Some finance experts believe the administrator may have to terminate player contracts now to save cash.
Simon Wilson, partner of restructuring experts, Zolfo Cooper, said: "It seems certain that Portsmouth will be relegated and will need a complete restructure.
"Depending on the level of committed funding available the administrator may need to terminate players' contracts to reduce outgoings because the possibility of selling players outside of the transfer window has already been denied by the Premier League."
Meanwhile, FIFA are set to discuss Portsmouth's plight at their next executive committee meeting on March 18.
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