Real Madrid and city rivals Atletico are not permitted to field any new signings until January 2018 after both clubs lost their appeals against transfer bans handed out by world governing body Fifa.
The Spanish giants were punished by Fifa’s disciplinary committee in January after being found to have breached regulations governing the transfer of players under the age of 18. The sanctions were frozen pending the outcome of the appeals.
The clubs are still permitted to make deals to sign players but cannot register them to play.
“Both clubs are to serve a transfer ban that prevents them from registering any players at national and international level for the next two complete and consecutive registration periods,” read a Fifa statement.
Real responded to the sanction by declaring their intention to take the case to the Court of Arbitration for Sport, saying: “We regret Fifa’s decision on the grounds that it is profoundly unfair and contrary to the most elementary principles of penal law. The club will make a corresponding appeal to the Court of Arbitration for Sport.”