Sheffield Wednesday have announced they have entered administration, with the EFL confirming the club have been docked 12 points immediately.
The Owls, whose financial difficulties have been well documented in recent months, issued a statement on Friday afternoon announcing the appointment of administrators.
The EFL followed with a statement of its own which confirmed the 12-point sanction for entering administration but pointed out the process "presents Sheffield Wednesday with the opportunity to move matters towards a successful sale and secure future under new ownership".
Wednesday said they had appointed insolvency firm Begbies Traynor as administrators, with Dejphon Chansiri's controversial ownership of the club now over.
The club said appointing administrators had followed "significant efforts to agree a sale to a credible future custodian in recent weeks which unfortunately could not be concluded and amid rising pressure from creditors".
Joint administrator Kris Wigfield said: "Like many football clubs, (Sheffield Wednesday) have been trading at a significant loss for several years, with those losses historically funded by the former owner Mr Chansiri.
"Due to increased financial pressure on the club, the owner has chosen to place the club and the stadium company into administration which will enable us to market the club and the stadium as a whole, which is great news for supporters of the club."
The club statement highlighted the drop in matchday revenue prompted by the supporter boycott against Chansiri, with attendances dropping from an average of over 26,000 since last season to just over 17,000 currently.
Wigfield added: "Supporters are the backbone of any football club. The money they spend at the gate and in the ground is vital. I've been a season ticket holder since 1984 and know first-hand the passion of this fanbase.
"Now, more than ever, we need fans back in the ground - buying tickets, merchandise, pies and pints. Every penny spent will go directly to supporting the day-to-day running of this club, not to the former owner or professional costs. This will help stabilise the club and support the loyal players and staff while we secure a suitable buyer."
Paul Stanley, another of the three joint administrators, said there should be no interruption to Wednesday's fixture schedule as a result of entering administration.
"If more fans return to Hillsborough, the club can cover its day-to-day costs and move towards a viable sale to a new ownership capable of restoring long-term stability," Stanley said.
"With the right ownership structure, we are confident that the club has a bright future and will meet all EFL regulatory obligations."
Fans have held protests calling on Chansiri to sell throughout the season, including during Wednesday night's clash against Middlesbrough at Hillsborough.
Supporters boycotted the game in their thousands in a bid to force Chansiri out.
Wednesday have been placed under various embargoes amid tax debts and after failing to pay players and staff on time on five separate occasions this year, including in September.
Images on social media showed seats spelling out Chansiri's name in the North Stand at Hillsborough being ripped out, while there were also reports of queues already forming outside the stadium of fans looking to buy tickets for Saturday's match.
Even Culture Secretary Lisa Nandy had called on Chansiri to sell, and on Friday she said: "Having been in this position with my own team, Wigan Athletic, I know everyone who loves the club will be hoping for a resolution as soon as possible.
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"Situations like this are exactly why this Government set up the new Independent Football Regulator. Owners should be good custodians who act with their club's best interests in mind and clearly, in this instance, that has not been the case.
"We are working quickly to give the Regulator the powers it needs so it can better secure the future of football clubs and ensure they remain at the heart of their communities."
The EFL said it would now engage with the administrators to work towards "an early resolution, and end the ongoing uncertainty faced by Sheffield Wednesday staff, management, players, supporters and all those associated with the club and their local community."