One of English soccer's most historic clubs is set to be placed in bankruptcy protection after a failed takeover bid. If financially stricken Bolton is placed under the management of administrators, it would result in a points deduction at the start of next season.

The northern club will be playing in the third division after relegation from the League Championship. Bolton chairman Ken Anderson says "I understand the serious implications administration will bring to the businesses. But I have been left with no alternative, as this course of action will preserve the football club and all of its proud history."

Bolton has a tax bill of more than 1 million pounds ($1.3 million) that was due to be paid last month but the club was given an extra month to settle the debt amid the possibility of a takeover by former Watford owner Laurence Bassini. However, talks with Bassini were scrapped because he failed to keep his pledge that Bolton's players and staff would be paid during the takeover process.