Southend United have been docked 10 points by the National League following a High Court decision to grant a final 42-day deadline to the club to avoid being wound up.
Owner Ron Martin said the sale of the club to an unnamed Australian buyer should be finalised next month.
But they have yet to clear a £275,000 debt owed to HM Revenue & Customs.
The deduction means Southend go bottom of the table on minus four points, but they are expected to appeal.
The financially-troubled Shrimpers were given a 42-day adjournment at their previous appearance in court on 12 July to clear their debt to HMRC and find a new owner.
In court on Wednesday, the judge warned Martin that the club, founded in 1906, would be wound up if the new deadline of 4 October was missed.
“If this was not a football club, with the attachment of its fans, I would be winding it up today,” Judge Sebastian Prentis said. “This has got to be sorted out”.
Southend, who have total debts of £2.5m, were warned by the National League last month that failure to clear their tax liability before Wednesday’s hearing would result in a 10-points deduction – irrespective of whether their case was adjourned for a third time.
“The League made the club aware on 26 July 2023 that all outstanding debt to HMRC should be discharged in full by their court hearing on 23 August 2023,” the National League said in a statement.
“The League are now aware of the court hearing adjournment and that outstanding debt to HMRC has not been discharged in full.
“As a result, Southend United Football Club have been deducted 10 points with immediate effect.”
In a statement written prior to the National League announcement, Southend said they would “immediately pursue an appeal” against any points deduction.
On the sale of the club, a statement said: “Negotiations are at an advanced stage with a consortium led by an Australian national, and comprising of a group of local businessmen. Completion is targeted before 1 October.”
After settling football-related debts of £300,000 last month to ensure they could start the season, Southend began the campaign with two wins and two defeats, which left thme in ninth place with six points.
But the 10-point penalty leaves them five points adrift of previous bottom club Dagenham & Redbridge.
Conservative MP for Southend West, Anna Firth, said she shared the fans’ “immense disappointment that this saga has again be extended for 42 days” but was treating Martin’s confidence over the pending sale of the club “with optimism”.
She continued: “I am aware of the potential buyer and have had several conversations with him and believe they are committed to the purchase and have the club’s best interest at heart.”
Concern over Shrimpers’ future lingers
Southend have managed their solid start despite being under a transfer embargo that was put in place last September because of their financial problems.
It has meant boss Maher has been unable to add to his squad for nearly a year and has only had 15 players to pick from on matchdays.
Maher said it was “pretty obvious to anyone watching what’s needed” after their weekend defeat by Hartlepool, adding the players and staff had been “incredible” but “need help”.
Wednesday’s ruling prolongs the uncertainty over the 117-year-old club’s future with Martin having started negotiations with several interested parties, including asset management company Kimura Capital, after putting Southend up for sale in March.
Kimura told BBC Essex last month that they believed the club was a “very attractive asset” and were willing to “join with other interested parties” but were “not the right people to lead this”.
Those talks appear to have come to nothing, but Martin is now “confident” the interest from Australia will prove concrete and secure the Shrimpers’ future.
