Southend United have relieved manager Steve Tilson of his duties.
Shrimpers' chairman Ron Martin said it was "a difficult decision" to place Tilson, 43, on gardening leave.
Tilson, who took charge seven years ago, failed to keep Southend in League One last season as he battled crippling financial issues at Roots Hall.
The club are under a transfer embargo because of delays paying players' wages and are facing a winding-up order at the High Court over unpaid tax debts.
The club has debts of about £200,000 from April and May this year and is due in court on 8 July.
However, Southend say they will honour the remaining year of Tilson's contract, which was due to expire in 2011.
Tilson was appointed caretaker-manager in November 2003 and after saving the cub from relegation he was given the job on a full-time basis in March 2004.
He immediately guided the club to back-to-back promotions to reach the Championship, but the club's slide back down to League Two has cost Tilson his job.
Martin told the club's website: "This has been the hardest decision during my time in football.
"Steve and I have had a very good relationship and one of the longest in the Football League.
"In the early years, the club enjoyed some of its greatest achievements.
"While it was a difficult decision, it was nonetheless a unanimous one with the board who wish to thank Steve for his contribution over the years.
"We now have much work to do which will start in earnest first thing Monday morning."
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