Crawley have been deducted three points and fined £5,000 by the Conference for exceeding their playing budget.

Reds must pay £3,000 immediately, with the rest suspended for 12 months unless they breach the rules again next season.

The league opted against a maximum £10,000 penalty in recognition of the club's hard work in trying to solve their financial problems.

The Conference sets an annual budget based on the income of their clubs from the previous two seasons. The punishment does not affect Crawley's league position.

Conference chief executive John Moules said: "We gave them until this week to explain what happened but it did not alter the fact that they have breached the agreed playing budget.

"They could have faced a much stiffer penalty but we took into account that there has been a change in personal behind the scenes.

"(General Manager) Barry Munn has come in and worked very hard to sort things out so we decided against the maximum penalty of three points and a £10,000 fine.

"If there is repeated breach of rules then expulsion from the competition is even a possibility."

Munn, who took up his position in February, said: "We are disappointed with the penalty because it looks bad for the club but we accept that rules are rules.

"We have worked very hard to try and sort things out but it has not been easy. When I took over, one of the things I realised is that the budget was all wrong since day one.

"From the very start of the season, it was always going to exceed the amount. We have had to come in and pick up the pieces."

Crawley revealed a financial crisis in February following the loss of a silent investor.

They put the squad up for sale and temporarily cut players' wages in half.

Munn admits Reds still have money problems and has revealed the possibility of going into administration and selling the club has been looked at.

He said: "Administration has been an option since day one. Everything has been considered, including selling the club and trying to find new sponsors because the owner's pockets only go so deep.

"We are looking at every option to try and sort things out. Hopefully things will improve because we can apply for a new budget next season. It will be our budget, something we have worked out properly and we can start again."