Sheffield Wednesday face a winding-up petition "imminently" over unpaid tax debts of around £1million to HMRC.
According to reports, the club could even be forced into administration, potentially triggering a major points deduction.
The Owls owe the taxman money relating to PAYE and VAT, according to investigations by the BBC and the Sheffield Star.
If the petition proceeds and owner Dejphon Chansiri is unable to settle the debt, he could have no choice but to place the former Premier League club into administration.
Sheffield Wednesday could face a winding-up petition within days over unpaid tax debts of around £1m to HMRC.
| GETTYThis would most likely result in a huge points deduction for Wednesday - potentially up to 15 points.
The commission may consider mitigating circumstances and previous sanctions imposed on other clubs when determining the final penalty, with precedents ranging from Reading's one-point deduction in 2023 to Wigan's eight-point punishment during the 2023-24 season.
It may, however, force through the sale that frustrated fans have been demanding.
Fans have staged protests and boycotted cup matches against Leeds and Grimsby against the current owner.
Sheffield Wednesday currently sit second from bottom in the Championship
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Recently, in the 10th minute of their Championship fixture against Coventry, dozens of Owls supporters broke through security and onto the pitch, forcing the game to be halted.
And the club's financial troubles run deeper than just the tax bill.
They're currently under five different EFL embargoes after failing to pay their players on time in five of the past seven months.
The first late payment came in March, followed by another in May, which triggered the league's sanctions in June.
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In July, the players refused to play a pre-season friendly against Burnley when their wages weren't paid on time for the month.
Most recently, wages due on 29 September did not reach all senior players by the month-end deadline of midnight on 30 September.
There has been widespread protests about Dejphon Chansiri's ownership at Hillsborough this season
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The chaos off the pitch has been reflected on it, with Wednesday sitting in 23rd place in the Championship. They have recorded just one win from their opening nine matches.
Sheffield South East MP Clive Betts recently told him to sell "to prevent the complete collapse of the club", saying fans "deserve better".
There's been some interest from American businessman John Textor, who previously held a stake in Crystal Palace, though talks haven't progressed.
Some believe Chansiri may be demanding an unrealistic price for a club he bought for about £40million in 2015.
Manager Henrik Pedersen says he's aware of the reports but wants to wait and see what happens.
"I heard about it and of course it's not good but let's see what happens before I say anything," he told BBC Radio Sheffield.
Despite the turmoil, Pedersen insists the squad remains focused ahead of Saturday's trip to Charlton.
"There has been a lot going on for a long time and we are really well trained to have focus on what we can control," he said.
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