Coventry City have avoided the 10-point penalty that would have accompanied entering administration after Ray Ranson, backed by the investment company Sisu Capital, completed a takeover for the Championship club 35 minutes before yesterday's 4pm deadline.

The agreement, under which Ranson will supplant Joe Elliott as the chairman, should safeguard Coventry's short-term future and also ease fears that Iain Dowie, the manager, might step down.

Ranson plans to restructure Coventry's estimated £38m debt to ensure that financial commitments are met and significant funds, believed to be up to £20m, have been promised to deliver progress.