West Ham United were fined a record 5.5 million pounds by a Premier League panel on Friday on charges of breaching ownership rules over the signings of Argentines Carlos Tevez and Javier Mascherano last August.
But they avoided a points deduction which could have severely harmed their chances of avoiding relegation from the Premier League.
The fine is the biggest in English football history, dwarfing the old record of 1.5 million pounds imposed on Tottenham Hotspur in 1994 for financial irregularities.
The case centred on the issue of third-party ownership of the two players, who were signed by the relegation strugglers from Brazilian club Corinthians, and also the club's failure to disclose details of the deals.
The panel gave the Premier League the right to terminate the contract of Tevez, who is still at West Ham, although Sky Sports News reported this is unlikely to happen and that he is free to play for the club as usual.
The Premier League said in March their Board believed the transfers breached a rule that no club should enter into a contract enabling another party to influence its policies or performances.
Three months after the pair moved to Upton Park, the east London club was bought by an Icelandic consortium led by businessman Eggert Magnusson, now the chairman.
ON LOAN
Tevez is still at West Ham, who are 19th in the 20-team league with three games to play, while Mascherano has since joined Champions League semi-finalists Liverpool on loan.
West Ham pleaded guilty in the case and as a result were not docked points.
They currently have 32 points from 35 matches and play in a critical relegation battle at Wigan Athletic on Saturday.
After the verdict, West Ham said in a statement on their website: "West Ham United Football Club was given an opportunity to present its case and received a fair hearing.
"The club's submission that the contracts gave no actual influence to any third party was accepted by the commission.
"The club has not been found guilty of fielding an unregistered player and speculation about a likely points deduction has proved to be unfounded.
"The club regrets the fact that they fell foul of the FA Premier League regulations, but the new owners of the club now want to focus on matters on the pitch and remaining in the Premier League.
"The threat of a points deduction has now been removed and the club's fate remains in its own hands.
"The club believes that promotion and relegation issues should be decided on the pitch and we are pleased that the commission agree with that view.
"The club will reflect on the financial penalty that has been imposed and will take advice before commenting on the possibility of an appeal or any further steps that might be taken."
