Liverpool have been fined £100,000 and banned from signing academy players after admitting breaching Premier League rules.
The Reds were found guilty of offering illicit inducements to a player previously at Stoke and cannot now register new academy signings for the next year.
The second 12 months of a two-year ban are suspended for a further three years pending a repeat offence.
The Premier League began an investigation into Liverpool's conduct after the club failed in an attempt to register the player in question on the grounds they had offered to pay his private school fees.
Liverpool and Stoke had, at that stage, agreed a compensation deal for the youngster.
According to a statement "the Premier League found evidence that Liverpool's conduct prior to applying to register the player contravened League rules."
The statement went on: "The League found evidence demonstrating regular communications between representatives of the club and members of the player's family.
"This included hosting them at Anfield for a match with expenses paid and other efforts to encourage the player, via his family, to sign for Liverpool. League rules strictly prohibit the offer of any inducements to encourage a move."
The League noted Liverpool's "timely and thorough" co-operation, and admission of guilt, but confirmed "the club will pay a fine of £100,000 and will be prohibited from registering any academy players who have been registered with a Premier League or EFL club in the preceding 18 months."
A statement from Liverpool said: "The club accepts the sanction."