Scottish club Dundee was deducted 25 points on Monday and banned from signing any new players after going into administration for the second time in seven years.
The club went into administration - a form of bankruptcy protection - on Oct. 14 after failing to pay a tax bill of 420,000 pounds ($670,000). It is now bottom of the second tier of Scottish football on -11 points, 20 behind nearest side Morton, having previously been fourth on 14 points after 11 matches.
''Clubs have to realise that, going forward, they cannot treat their (tax) obligations as something akin to a credit card,'' the Scottish Football League said in a statement.
Dundee administrator Bryan Jackson said the club will appeal against the sanction.
''I think that this is an outrageous punishment for the club,'' Jackson said.
''With almost guaranteed demotion from the first division, it will be much more difficult to attract investment or retain players.''
Jackson added that the points deduction and transfer embargo ''threatens the future existence of the club.''
The SFL said the board will reconsider the situation if Dundee is not out of administration by March 31, 2011.
Over the past two years, Gretna and Livingston have been relegated from the second to the fourth tier after breaking the SFL's insolvency rules. Sanctions, however, are at the discretion of the SFL board.
Dundee also went into administration in 2003, under then owners Peter and James Marr.
''We are of the opinion that lessons are not being learned,'' said the SFL, which added that it is planning to implement an early-warning system to alert it to any more clubs facing financial difficulties.
