Cork City have been docked 10 point by the FAI's licensing committee after the company that pledged to assume its debt reneged on its commitment and plunged the club into examinership.
The FAI met with Ted Hughes, the examiner appointed to Cork City Investment FC Ltd, yesterday morning and a it was agreed a sanction would be put in place as soon as possible.
An FAI statement released last night said that the decision of the Arkaga Fund, the venture capital group that assumed control of the club last year, to refuse to honour its written committment had left the club in a difficult position but that last night's decision of the independent club licensing committee to dock points was unavoidable.
The FAI did, however, pledge to help the club "regain sound financial footing".
"Following Arkaga's regrettable decision to renege on its written undertaking to guarantee all liabilities arising at Cork City Investment FC Ltd until January 2009, the club entered into examinership on August 18th," the statement read. "The FAI has already expressed its displeasure at Arkaga's actions which have placed the club in the difficult position it currently finds itself.
"The FAI met this morning with the Examiner appointed to Cork City Investment FC Ltd. He expressed his desire for a quick decision from Licensing regarding a sanction for Cork City FC as it would make it more desirable for the investors currently interested in the club to proceed with their intentions.
"A meeting of the Independent Club Licensing committee was convened tonight and they deducted 10 points from Cork City FC for being involved in an examinership process as per section 3.1.2 of the club licensing manual. This sanction is effective immediately. The Committee was keen to express that it is imperative for all clubs to adhere to sound financial policies.
"Now that the club has entered into examinership, the FAI has provided the examiner with a letter stating that the FAI will support the club during the examinership process as it strives to regain sound financial footing."
Cork are now on 35 points in the Premier Division, 23 behind league leaders Bohemians, and in a tie for fourth place with Drogheda United.
Earlier this week the Cork players agreed to a 70 per cent wage deferral in a bid to ease the financial strain on the club.
There were also 10 members of staff let go, while others agreed to work part-time.
