order that there shall be no sanction at all
Smith said: "It's very difficult on the players and the fans to have this done to them through no fault of their
own.
"We've got to accept it and make it a challenge and see if we can get out of the problems.
He added: "We can try (to appeal) but it's the first time it's happened.
"We don't know how the league would view it but if they looked at it sensibly they might look at us with sympathy."
Former Wales manager Mark Hughes, who was born in Wrexham, has backed Smith and the Wrexham players to get the results on the pitch to avoid relegation.
The Blackburn boss added: "Everyone in football has been really disappointed with the situation that has developed, and having come from there I probably know as much as anyone how much it means.
"I was born just down the hill from the football club and my children were too.
"The Racecourse Ground is a fantastic facility and for that to be taken away from the community would be a crying shame.
"Hopefully going into administration will give them the breathing space they need - it is probably the only way they can survive."
As well as the points deduction, regular cash payments from the Football League could also be withheld as a safeguard against the club failing to complete the season.
Wrexham are away to Scunthorpe in the second round of the FA Cup on Friday night, and a cup run would provide some welcome relief as well as important extra revenue.