English football club Portsmouth entered administration (bankruptcy protection) for the second time in two years on Friday, resulting in a fatal 10 point deduction which may lead to the club's relegation from the npower Championship league.
The 2008 FA Cup victors, who have amassed a debt of £4 million, have not been able to pay their players, staff, utilities, creditors and taxes since January.
The HMRC (Her Majesty's Revenue and Customs) have issued a winding-up order (for unpaid taxes totaling £1.6million) which has frozen all the club's bank accounts.
"By going into administration other opportunities will come up for investors, who would have been reluctant to buy the club with a winding-up order hanging over it," BBC quoted Portsmouth North MP Penny Mordaunt as saying.
However, administration will allow the former Premier League club to access their frozen accounts and continue trading while the club scouts for new owners.
Pompey was the first Premier League club to enter administration in 2010. This led to their regulation to the npower Championship league, where they now lie at the 21st position, just above the drop zone.
Convers Sports Initiatives, Portsmouth's parent company, also went into administration in November 2011.