Irish League football club Newry City has been wound up at the High Court in Belfast.
A petition brought by former manager Gerry Flynn against the limited company which runs the Championship One side was granted in a hearing lasting only minutes.
Earlier this year Mr Flynn was awarded £25,000 in damages after claiming wrongful dismissal and breach of contract.
When no money was paid out, he instructed his lawyers to issue winding-up proceedings against Newry City FC Ltd.
Sources close to Mr Flynn stressed that his petition was an attempt to resolve the issue rather than seeking the club's closure.
No-one representing Newry City was in court yesterday. It is expected that the winding-up order will lead to Newry City FC Ltd now being liquidated.
Uncertainty surrounds whether the club will be able to fulfil any fixtures without re-forming as a new entity.