Coventry City's board have confirmed they intend to put the club into administration.

A statement issued from the club just after 2.15pm announced the move insisting it was being taken to facilitate the proposed take-over of the football club which currently has debts of more than £38 million.

If the board do bring in the receivers however it will come at a hefty price for its team and manager Iain Dowie as going into adminstration automatically incurrs a ten point penalty from the Football Association. Dowie has already intimated he may be forced out of the club if it falls into the hands of recievers.

Losing ten points would mean that 14th placed Sky Blues would be forced to surrender their mid-table comfort zone and would instead be plunged into a relegation battle in the bottom three of the Coca Cola Championship table.

A statement from the club's board said yesterday: "The Board of Coventry City Football Club can confirm that it has today filed in court notices of intent to go into administration.

"This is merely a legal progress protecting the Bank and its creditors and should speed up the potential take-over of the club and therefore take Coventry City into a solvent financial situation.

"This legal notice gives Coventry City a ten-day window to complete the take-over talks with Ray Ranson and Sisu Capital, along with other parties.

"Following recent speculation th eclub can confirm that staff and player wages have now been paid and we look forward to a successful conculsion of the takeover in the near future.

"Coventry City wil not be making any further comment at this time."

The news came just 48 hours after football entrepreneur Ray Ransom and his SISU Consortium were seen at the Ricoh Arena on Saturday prior to City's 1-0 defeat at the hands of Sheffield United.

He was seen talking with members of the board about their proposed bid to take control of the club and the stadium.

Ransom later said he was optimistic his negotiations with the club would reach a swift and favourable conclusion. He hinted his move to take over the club could be about to come to fruition adding: "I wouldn't be here otherwise."

The news of the impending move into administration could not have come at a worse time however for Dowie who was preparing his team for tomorrow's difficult trip to high-flying West Bromwich Albion.

He conceded last week that he might be forced to quit if the club called in the recievers and all his hard work so far this season was undone.

He has already bemoaned the fact that a transfer embargo slapped on the club last month means that he cannot strengthen his squad for the foreseeable future or even bring in loan players.

Dowie said: "I would review my position in light of what I have been told. I will definitely be doing that but I am a football manager and I will concentrate on football things."

Ranson, a former Manchester City and Birmingham City footballer, was also linked with a potential move for Aston Villa prior to the take-over by American billionaire Randy Lerner from then chairman Doug Ellis.

His initial bid for Coventry last week stalled after it was blocked by the Co-Operative Bank who are owed £18 million by the club.

Last last week the bank had to step in to pay the players' wages and it appeared the threat of administration had receded.