Serie A club Parma have been declared bankrupt by a court in Italy but will be allowed to see out of the season.
The club's debts are estimated at nearly 75m euros (£54m).
Giampietro Manenti promised to clear the debts when he took over as chairman last month but he was arrested on Wednesday after being accused of involvement in a credit card scam.
The Italian league has allocated 5m euro (£3.6m) so the league's bottom club can fulfil their fixtures.
In the absence of Manenti, club officials Osvaldo Riccobene and Enrico Siciliano represented the club at a scheduled hearing, which lasted 10 minutes.
Riccobene said: "The club's creditors called for bankruptcy, which was accepted by the prosecutor."
Parma's season has long descended into farce. Players have not been paid this campaign, while they have had to do their own laundry, drive the team bus and go without hot water.
The club - who have changed ownership twice this season - have already been hit with a three-point deduction and been forced to postpone two matches. They are 16 points adrift of safety.
Parma, who are coached by former Italy and AC Milan midfielder Roberto Donadoni, were runners-up in Serie A in 1997 and won the Uefa Cup in 1995 and 1999, as well as the 1993 Cup Winners' Cup.