Debt-ridden Portsmouth FC are set to become the first Premier League club to be put into administration, effectively ensuring their drop from top-flight English football.
The South Coast club's owner Balram Chainrai took the decision after talks with four interested groups failed to lead to a takeover.
His spokesman Phil Hall said the process of administration had begun at the club - which is saddled with £70 million debts - and it will be completed in the High Court.
Pompey will be automatically docked nine points as a result of going into administration, which would virtually seal their relegation from the Premier League.
Manager Avram Grant said he was "very sad" and "very angry" at the situation, adding that he had been "more or less" told the club would go down the administration route.
Administrator Andrew Adronikou, of insolvency experts UHY Hacker Young, has begun the paperwork after a possible buy-out by four consortia failed to materialise.
He will now begin the process of cutting costs at the club to try to keep it going as a viable entity.
Mr Hall said talks had not broken down with the four interested groups but the club had not been attractive enough to them in its current financial state.
He added: "Once the club is in a more viable state it may become more attractive to them in terms of a takeover."
Chainrai, who is looking to recover a £17million loan he made to the previous owners, has moved to prevent the club from being wound up in the High Court on Monday over £7.5million owed to HM Revenue and Customs.
