Culture secretary Lisa Nandy has called Sheffield Wednesday’s plight “an extremely worrying situation” after the club entered administration on Friday.
The Owls, whose financial difficulties have been well documented in recent months, issued a statement on Friday afternoon announcing the appointment of administrators.
The EFL followed with a statement of its own which confirmed the 12-point sanction for entering administration but pointed out the process "presents Sheffield Wednesday with the opportunity to move matters towards a successful sale and secure future under new ownership".
The deduction leaves the Championship's bottom side on minus six points, 13 points adrift at the foot of the table, ahead of Saturday's match against Oxford at Hillsborough.
Wednesday have appointed insolvency firm Begbies Traynor as administrators, with Dejphon Chansiri's controversial ownership of the club now over.
Nandy said the government’s new Independent Football Regulator will have the power to protect clubs from a similar situation in the future.
“For the fans, staff and players of Sheffield Wednesday this is an extremely worrying situation,” Nandy said. “Having been in this position with my own team, Wigan Athletic, I know everyone who loves the club will be hoping for a resolution as soon as possible.
“Situations like this are exactly why this Government set up the new Independent Football Regulator. Owners should be good custodians who act with their club’s best interests in mind and clearly, in this instance, that has not been the case.
“We are working quickly to give the Regulator the powers it needs so it can better secure the future of football clubs and ensure they remain at the heart of their communities.”
Wednesday fans have been urged to return to Hillsborough and support the team.
Joint administrator Kris Wigfield said: "Like many football clubs, (Sheffield Wednesday) have been trading at a significant loss for several years, with those losses historically funded by the former owner Mr Chansiri.
"Due to increased financial pressure on the club, the owner has chosen to place the club and the stadium company into administration which will enable us to market the club and the stadium as a whole, which is great news for supporters of the club."
The club statement highlighted the drop in matchday revenue prompted by the supporter boycott against Chansiri, with attendances dropping from an average of over 26,000 last season to just over 17,000 currently.
Wigfield added: "Supporters are the backbone of any football club. The money they spend at the gate and in the ground is vital. I've been a season ticket holder since 1984 and know first-hand the passion of this fanbase.
"Now, more than ever, we need fans back in the ground - buying tickets, merchandise, pies and pints. Every penny spent will go directly to supporting the day-to-day running of this club, not to the former owner or professional costs. This will help stabilise the club and support the loyal players and staff while we secure a suitable buyer."
Paul Stanley, another of the three joint administrators, said there should be no interruption to Wednesday's fixture schedule as a result of entering administration.
"If more fans return to Hillsborough, the club can cover its day-to-day costs and move towards a viable sale to a new ownership capable of restoring long-term stability," Stanley said.
"With the right ownership structure, we are confident that the club has a bright future and will meet all EFL regulatory obligations."
additional reporting by PA
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