Liverpool have been banned from signing youth players for two years and fined £100,000.
The Premier League hit the Anfield club with the sanction after being found guilty of tapping up a Stoke City schoolboy.
A deal had been agreed with the 11-year-old’s family only for the Reds to renege over a refusal to pay the youngster’s private school fees.
Stoke had an arrangement with the player which Liverpool, who have accepted the ban, promised to match before withdrawing from the deal.
As a result of the ruling, Liverpool cannot sign players who have been registered to either a Premier League or Football Lesgue club for the past 18 months.
The second part of the 24-month ban has been suspended but could be extended to a period of three years if breached.
Real Madrid, Barcelona and Atletico Madrid have been hit with similar punishments in the past.
Should Liverpool pursue a move for Ryan Sessegnon this summer, however, they would not be liable for punishment due to the Fulham defender being eligible as a first-team player upon turning 17 in May.