Coventry City chairman Mike McGinnity has announced the club has debts totalling just over £20m.
Joachim has been put on the transfer list
In a bid to cut costs the west Midlands club will release six players when their contracts expire in the summer.
Nine more staff, including Yousef Chippo, Jay Bothroyd, John Eustace and Julian Joachim, have been given free transfers.
McGinnity said such extreme measures had to be taken in order to secure the club's long-term future.
"What we've had to do has been extremely painful," McGinnity told the club's website.
"But we're bottoming out and have a lot of positives to look forward to.
"If we hadn't come down this far we couldn't look forward because we'd be bust.
PLAYERS ON FREE TRANSFERS
"Our business plan - which has been fully approved by the bank - will take us through to 2006, from cash flow negative to positive.
"We have an excellent Academy and have seen several talented young players progress into the first team this year."
Coventry secured their Division One status next season last Saturday despite losing to Stoke.
But Sky Blues' boss Gary McAllister, who has been in charge for exactly a year, is warning the club still needs an overhaul both on and off the pitch.
"We may be safe but it doesn't hide the fact some major things need
to happen here," McAllister said.
The Scot also revealed the club still intended to bring in new players during the summer break although they would be paid just 10% of those on the transfer list.
McAllister himself still has two years left to run on his manager's contract and is negotiating a pay-as-you-play deal for his on the pitch performances.
Coventry had just completed the first stage of their new home - a £60m multi-purpose stadium.
I am not a quitter, Gary is not a quitter and our aim is to restore this club to glory
Coventry chairman Mike McGinnity
Coventry Arena - the firm set up by the football club and the city council - are continuing to prepare the site while the search for a building contractor continues.
The club is the latest First Division side to admit to financial pressures after both Leicester City and Ipswich went into administration this season.