In a bid to cut costs the west Midlands club will release six players when their contracts expire in the summer. Nine more playing staff have also been given free transfers.
Chairman Mike 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. 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. 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."
The First Division club has just completed the first stage of their new home - a £60m multi-purpose stadium.
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.
