Durham have been relegated from Division One in the County Championship over financial issues, with Hampshire being reinstated.
The North East county have also lost the right to stage Test cricket at their Riverside ground.
Durham have accepted a £3.8m financial aid package, which has been approved by the England and Wales Cricket Board and accepted by the club.
They will start next season in Division Two with a 48-point deduction.
Durham will also face a four-point penalty in the 2017 T20 Blast and a two-point deduction in the One-Day Cup.
Additionally, the club will be subject to a revised salary cap from April 2017-2020, with the level determined annually by the ECB board.
All prize money from ECB competitions, except that for player awards, will be withheld until the club’s debt to the national governing body is cleared.
The Riverside first hosted international cricket in 1999 when Scotland played Pakistan in a one-day international.
In all, six Tests, 16 one-dayers and three T20 internationals have been staged at the ground.
Article source: http://www.bbc.co.uk/sport/cricket/37541136