Portsmouth were left facing a points deduction that could plunge them into the third tier of English football just four years since winning the FA Cup after announcing on Monday plans to seek administration.
It would be the second time in as many years the south coast club has gone into administration.
Pompey face a winding-up hearing next week over an unpaid tax bill and have not been able to pay their players and staff for January.
Peter Kubik, of the club's financial advisors UHY Hacker Young, said Monday: "They are in the process of seeking an administration order - an application to court seeking administration is due to go in any day.
"The club's bank accounts have been frozen due to the winding up hearing and they are finding it very difficult to trade. Once the administration order is in place the bank accounts will be made accessible again.
"We are aware that administration carries an automatic 10-point deduction by the Football League."
Pompey were sent hurtling into their latest financial crisis after their parent company, Convers Sports Initiatives (CSI), went into administration in November. UHY Hacker Young are the administrators for CSI.
The tax bill is for between £900,000 and £1.2 million but Kubik added there were many other outstanding bills to pay.
Portsmouth chief executive David Lampitt said the latest financial setback was tough to take for all concerned at Fratton Park where as recently as 2008 Pompey, then managed by Tottenham boss Harry Redknapp, were celebrating winning the FA Cup.
"It does beggar belief, for everyone associated with the club: the supporters in particular who have been through so much, my staff who have been through so much and have fought so hard since the club emerged from administration in 2010, and it's a very, very hard pill to swallow," Lampitt told BBC Radio Five.
"It wasn't me personally, it was the board of directors, who today made an application to put the club into administration.
"The date for that hearing is going to be this Friday, February 17, so we'll find out on Friday."
Lampitt, who said the situation was "an incredibly sad state of affairs", added: "The best outcome for all sides is there is a clean break and the club goes into new ownership and puts all of that behind us."
In February 2010, Portsmouth became the first Premier League club to enter administration and were deducted nine points, condemning them to relegation from English football's top-flight and a place in the second-tier Championship.
A 10-point deduction from the Football League would put Portsmouth on 25 points, outside the relegation places into third division League One on goal difference alone.