FIFA, world football governing body, sanctioned Real Madrid and Atletico Madrid for breaching rules in relation to the hiring of minors.
The penalty prevented the two LaLiga clubs from registering new players for the next two transfer windows, prohibiting them to venture into the transfer market until January 2018.
Along with the transfer ban, FIFA also penalized Real Madrid and Atletico Madrid with 360,000 Swiss francs and 900,000 Swiss francs fines, respectively.
Following the decision, Real Madrid Football Club released the following statement:
In light of today's decision by the FIFA Appeal Committee, Real Madrid C. F. wishes to communicate the following:
1. The club regrets said decision, understanding it to be deeply unjust and contrary to the fundamental principles of disciplinary law.
2. The club will begin the appropriate appeals procedure before the Court of Arbitration for Sport (CAS), requesting that the decision be completely overturned, with absolute confidence that said organisation will come to an entirely favourable decision.
3. Real Madrid C. F. will request that the procedure be undertaken in an urgent manner in order to obtain a decision from the CAS as quickly as possible.
Atletico also confirmed their intention to take an appeal to CAS.
In a statement, the management of Atletico said: "Our organisation wishes to state that 100 percent of the licences of our players who are part of this investigation and continue at the club have been regularised by FIFA itself, receiving authorisation from the sub-committee to process our licences and compete in different categories."
The FIFA Appeal Committee, on Friday, has also decided to reject the appeals of the two clubs.
In 2014, Barcelona was slapped with the same punishment when it signed Arda Turan and Aleix Vidal before the start of the last season, even though the registration ban prevented either man from representing the club until January this year.
