The measure was agreed yesterday at a meeting of the league’s 20 chairmen and comes into effect from June 3, after the end of the current season.
The move means that Leeds United, currently over £80m in debt, will be unable to avoid a points penalty if they fall into administration next season whether they avoid relegation or not.
Leeds has desperately been trying to avoid administration and is currently in talks with a consortium about selling the club. If this fails however, the decision by the League may force them to look at administration sooner rather than later.
Steve Absolom and Will Wright from KPMG Restructuring have been appointed joint administrators to City Motor Holdings and associated companies
Partners from Johnston Carmichael have been appointed as joint administrators to Axon Well Interventions Products UK
Begbies Traynor have been appointed administrators of William Anelay Ltd, York, one of Britain’s longest-established construction and heritage restoration companies
Smith & Williamson has been appointed administrators of charity 4Children