Real Madrid and Atletico Madrid are under a transfer embargo for the next two windows due to irregularities regarding the signing of underage players. The Spanish giants will serve the sanction out in the January transfer window and the following summer's mercato, after Fifa turned down their appeals.
In January 2016 Fifa announced that the current Champions League winners and their cross-city rivals had been banned from making any signings across the two upcoming windows. However, days later the world game's governing body temporarily suspended the embargo following appeals from the clubs in question.
Los Blancos and Los Colchoneros have thus been able to make new signings during the summer transfer window. Fifa have now said that the two sides will serve the ban in the coming January transfer window and in summer 2017 after their appeals were rejected.
"The FIFA Appeal Committee has decided to reject the appeals lodged by Spanish clubs Atlético de Madrid and Real Madrid and to confirm in their entirety the decisions rendered by the FIFA Disciplinary Committee in the respective cases relating to the protection of minors," the World game's governing body confirmed on Thursday 8 August in an official statement. "As such, 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 for breaching articles 5, 9, 19 and 19bis as well as annexes 2 and 3 of the Regulations on the Status and Transfer of Players (the "Regulations"). The transfer ban applies to each club as a whole – with the exception of the women's, futsal and beach soccer teams – and does not prevent the release of players. "
Real Madrid and their neighbours will also have to pay fines, while Fifa have urged them to rectify the situation in the coming 90 days.
"Additionally, Atlético de Madrid and Real Madrid have been fined CHF 900,000 and CHF 360,000 respectively, while both clubs have been issued with a reprimand and a warning and given 90 days in which to regularize the situation of all minor players concerned," Fifa added. "The grounds of the decisions taken by the FIFA Appeal Committee were communicated to the parties concerned today."
Barcelona were handed the same sanction in 2014. As with Real Madrid and Atletico, they managed to delay the embargo following an appeal.