LEAGUE OF IRELAND PREMIER DIVISION:THE FAI'S Independent Club Licensing committee last night decided that Drogheda United should be docked 10 points with immediate effect as a result of it having entered into examinership in recent weeks.
In a statement issued after its meeting had concluded, the committee said that it had taken the action on the basis that it is "imperative for all clubs to adhere to sound financial policies".
The deduction means that last year's league of Ireland Premier Division champions drop from fourth to eighth place in the table.
Paul Doolin's side are safe from relegation as they have a seven-point cushion over Finn Harps who are themselves two points clear of the drop zone, but the penalty leaves them out of contention for a place in Europe for next season.
The committee's action is in line with the punishment imposed on Cork City earlier in the season in similar circumstances.
United have the right to appeal the sanction but in City's case a decision was taken not to pursue the matter as it was felt that it was better to achieve clarity as early as possible in the examinership process.
Though not unexpected, the news is another serious blow to a club that been the country's most successful in recent seasons. Having won both the Setanta (twice) and FAI Cups since 2005, United won its first ever league title last November.
It subsequently performed well in the Champions League qualifiers, narrowly failing to cause a huge upset by eliminating Dynamo Kiev in the competition's second round this summer.
Although United are only the second club to actually take the leap of entering examinership this year, more than half of the top flight's members have experienced serious financial difficulties resulting in at least a temporary inability to meet their financial obligations to their players.
The league's director, Fran Gavin, recently suggested that the problem has been caused by the clubs' failure to adapt to the introduction of new rules imposing a ceiling on the percentage of income that can be paid out to players.