Plymouth Argyle are reportedly in the process of issuing a "Notice of Intention" which will see them enter administration and suffer a ten-point deduction.
The League One strugglers have been subject to three winding-up petitions so far this season from HM Revenue & Customs and an official club statement read: "This action gives the club protection from insolvency action from creditors.
"This does not mean that the club is in administration today nor does it assume that it will necessarily enter into administration at a future date."
The move will leave the cash-strapped club bottom of League One on 23 points, and five points adrift of Dagenham & Redbridge in 23rd position.
The 'Notice of Intention' gives the club 10 working days to either appoint an administrator or find new investors, with David Hinchliffe from Walker Morris Solicitors appointed in the interim period to work alongside Plymouth's consultant to the board Peter Ridsdale.
The former Leeds chairman, who has been advising Plymouth's board since December 2010, has previously told the BBC that a massive £2 million is needed to ensure the club survives until the end of the season.
With his side now facing an uphill battle against relegation, Argyle's manager Peter Reid told the BBC: "From a football point of view it's a massive blow to the club.
"You've just got to get on with it," he continued. "It's going to make it really difficult but we've just got try and start the fight back against Brighton
"Hopefully the board of directors can sort out the financial problems and hopefully this is the lowest ebb and we can start rising from this situation."
To see the full article and watch the video interview click here.
Argyle are a big club with a massive following and looking at the lower reaches of League One, there are several other Southern based clubs struggling at the wrong end of the table - all good news for Shots supporters for next season!