The administrators have been appointed to rescue the club and reconstruct its finances and will be urgently seeking buyers, Palace said on its website. Administration leads to an automatic 10-point penalty.
The Championship side reported debts of around £30m and were due in court on 27 January for a winding-up order after twice failing to pay players on time and owing £1.2m to HM Revenue & Customs.
Brendan Guilfoyle, Chris White and John Russell of the P&A Partnership have been appointed as administrators to reconstruct the club's finances and find a buyer.
Guilfoyle said the club "has been in the spotlight for some months, with creditors pressing for payments and players anxious about their wages".
The club, founded in 1905, is owned by Simon Jordan, who has been attempting to attract new investments.