Mallorca finished fifth in La Liga last campaign and qualified for the Europa League but UEFA said on Thursday that its Control and Disciplinary Body had decided the club had not fulfilled the admission criteria.
"...the licence of the club was not granted in accordance with the UEFA Club Licensing Regulations, 2008 edition, and the club has not fulfilled its obligations as defined in these regulations," UEFA said in a statement on its website (www.uefa.com).
Mallorca said in May they had applied to go into voluntary administration in an effort to sort out their finances.
Like many Spanish clubs, they have been slipping ever further into the red due to spiralling wage and transfer costs and a recent University of Barcelona study indicated they had debts of around 85 million euros ($108 million).
World No 1 tennis player and Mallorca native Rafa Nadal became a shareholder in the club this month and his uncle, former soccer professional Miguel Angel Nadal, is assistant to new coach Michael Laudrup.
Mallorca, who have three days to decide whether to appeal, said they were surprised by UEFA's decision.
"Real Mallorca profoundly regrets the disappointment this decision by UEFA, which is hard to understand and without precedent, will cause among our fans," the club said on their website (www.rcdmallorca.es).
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