Punishment handed down to debt-ridden Coventry City

Coventry City Football Club was deducted 10 points after creditors rejected a deal to ease its debts.

The club is now facing liquidation and representatives are planning an urgent meeting with the Football League.

The problem was sparked by the failure of the club and stadium owners to reach an agreement on a 10-year lease.

The Football League has allowed the Sky Blues to begin their league campaign.

There is no suggestion yet that Coventry will not be able to fulfill League One fixtures. Their season kicks off on Saturday away to Crawley.

A Football League statement said: “The League has transferred the club’s share to the administrator’s preferred bidder, Otium Entertainment Group.

“This follows an application under the ‘exceptional circumstances’ provision of the League’s Insolvency Policy and regarding the acceptance of a 10-point deduction for this season.”

He continued: “The request falls under the ‘exceptional circumstances’ provisions of the Football League’s Insolvency Policy and accepting the 10-point deduction allows Coventry City to start the League One season despite its CVA failure.

“This allows Coventry City to continue their membership of the Football League and take part in the 2013-14 season.”