Wigan have failed in their appeal to get a 12-point deduction for going into administration overturned, meaning they are relegated from the Championship, the English Football League confirmed on Tuesday.
The punishment for the 2013 FA Cup winners dropped them from 13th to second from bottom of the second tier and they will play next season in League One.
An EFL statement said: “An independent arbitration panel has ruled that Wigan Athletic’s 12-point deduction for entering administration last month will stand after dismissing the club’s appeal against the sporting sanction.”
It added: “The decision of the arbitration panel is final and legally binding.”
The appeal was held on Friday when it was revealed that “detailed talks” with bidders over the sale of the club were to continue this week.
Manager Paul Cook quit the former Premier League club last week.
In a statement on their website, Wigan said: “The club put forward a strong case and naturally we are disappointed at the decision.
“The first-team management will now prepare the team for next season’s Sky Bet League One campaign.”
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