Crawley have been hit with a six point deduction for financial irregularities four days before the new Conference premier season begins. Reds were handed the penalty and a £10,000 suspended fine by league officials at a meeting on Monday.

They have also been ordered to set up a £100,000 bank bond as a guarantee they will have enough money to complete next season.

They are believed to have been punished for discrepancies in their annual playing budget (APB) and for failing to confirm they have paid off their remaining administration debt, known as a company's voluntary agreement (CVA).

The embargo preventing the club from signing new players on contract will remain until the Conference are satisfied the CVA has been settled. Reds have 14 days to appeal.

The news comes just days after the club claimed they had paid off the final instalment of the CVA.

They insist all the money is being held by administrators Begbies Traynor but could not prove it to the league.

A statement from the Conference said: "Crawley Town have been found to have brought the competition into disrepute following financial irregularities.

"They will start the new season with a six point deduction and the embargo on signing new players will remain until confirmation has been received from the administrator that they have satisfied the terms of their CVA.

"The club has been fined £10,000 which will be suspended until the end of the season 2007-08 and ordered to pay costs."

Chairman Vic Marley said: "We have 14 days to appeal and are considering what to do. We are very disappointed and are not satisfied with the decision.

"It is nothing to do with the CVA, all the monies are with Begbies Traynor, it is for financial irregularities and that can cover a range of things.

"It is nothing underhand. We feel it is because of a technicality and we may have just done something the wrong way."

The Conference lost patience after a year of money problems at the Broadfield Stadium. Reds were deducted three points at the end of the 2005-06 season after exceeding their playing budget.

They started last season with minus ten points after going into administration with debts of £1.4 and have consistently failed to meet deadlines to pay creditors ever since.

Crawley fans - what do you make of this latest bombshell to hit your club?