The English Football League docked Morecambe three points for disregarding a judgement that was reached and enforced in August 2023 after the team neglected to make player payments on schedule.
At the time, the League Two team received a suspended three-point deduction, which has since been activated.
The Shrimps fall from 12th to 14th place, effectively ending any remote chance of making the playoffs.
Additionally, owner Jason Whittingham was fined £10,000.
In addition to the immediate payment of that sum, Whittingham faces a suspended fine of £20,000, which will come into effect on May 31, 2024, if he doesn’t fully fulfil his responsibility to reload the deposit account in accordance with the conditions of the consent decree of August 17, 2023.
In August of last year, Whittingham was instructed to deposit a sum equal to 125% of their monthly pay bill as a contingency against future delays.
The EFL said that although the deposited monies were spent the next month and not redeposited, they were charged in December.
“The board expresses their significant disappointment at the outcome of the hearing,” the club said in a statement.
