Championship side Derby County are set to go into administration amid their continued financial problems.
The club, which is up for sale, said despite negotiations with a number of "credible parties", identifying a buyer was unlikely in the short term.
The English Football League confirmed they would face a 12-point deduction.
In a statement the Rams said Covid-19 had a "severe impact" on revenues and they "had no choice" but to appoint administrators to protect the club.
It claims the pandemic has cost them around £20m in lost revenue and left them "unable to service its day-to-day financial obligations".
"We cannot stress enough how devastating it is to be forced into this position," the board's statement said.
"This season, Covid-19 has continued to have a negative effect on revenues.
"Unlike other sectors, football has been able to only marginally reduce its cost base with the majority of outgoings being associated with playing staff who obviously could not be furloughed."
Derby, managed by former England captain Wayne Rooney, are 16th in the table with seven points from their first seven matches.
A 12-point deduction would leave them with minus-five points and 10 points from safety.
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