Worcester Warriors have been suspended from playing and will be put into administration after failing to meet a Rugby Football Union funding ultimatum.
The financially stricken club had to provide proof of a “credible” plan for the future by 17:00 BST on Monday.
The men’s team will now be banned from the Premiership and the women’s side from the Premier 15s.
Administration means the men’s side could be sanctioned with either a points deduction or relegation.
The Department for Digital, Culture, Media and Sport (DCMS), one of the main guarantors of a loan through Sport England, said it had agreed to the directors’ request to place Worcester into administration.
The loan, thought to be about £15m, was part of the government’s sports survival package during the coronavirus pandemic.
A statement added that it was “in order to give the club the best possible chance of survival,…