What's harsh about it?
SFL: OK Livi, you can stay in Division One, as long as you lodge a bond to fulfil your fixtures.
Livi: Aye, no bother.
Week later...
SFL: So, can you provide the bond?
Livi: Errr, Naw.
SFL: You best be moving on then, you've got Division Three to prepare for.
Seems fairly straightforward to me. If Livi had done what they said they would do at the first meeting, instead of blackmailing the SFL with a "Its Division One or else", and failing to lodge a bond that seemed a week earlier to not be a problem, then the SFL would have kept them in Division One, with nothing worse than a 10 point penalty. They only have themselves to blame for this nonsense.