The Sky Blues had hoped to avoid being reprimanded after placing a subsidiary company into voluntary administration but they have now been punished by the Football League
The Sky Blues placed one of its subsidiary companies (Coventry City Football Club Limited) in administration last week, but insisted that the move would not affect the running of the club.
However, the company who own the club’s home stadium, the Ricoh Arena (Arena Company Ltd) told the High Court that they are owed £1.3 million by the Midlands team and believed that the company placed into administration was responsible for the club’s Football League membership.
A statement on the Football League website read: "The Football League can confirm that Coventry City Football Club have been deducted 10 points, in accordance with its rules and regulations.
"This Sporting Sanction has been implemented with immediate effect. Coventry City have seven days in which to appeal.
"The League has now begun discussions with the administrator aimed at achieving a sustainable future for the club within The Football League."
This deduction would see Steven Pressley's side slip from 10th, five points off the play-offs, to 14th in the table.
The club have not yet confirmed whether they intend to appeal the decision, but released a statement explaining that they will seek "further dialogue" with the Football League, who will give the situation further consideration at their next meeting on April 11.
Coventry have also confirmed that they have reached an agreement with ACL to play their remaining home fixtures at the Ricoh Arena, starting with Friday's game against Doncaster Rovers.