Neighboring clubs Real Madrid CF and Club Atletico de Madrid have both been slapped with one-year FIFA transfer ban by the FIFA Disciplinary Committee. The cases concern disciplinary actions taken against both clubs for breaching FIFA rules on hiring minors. After both clubs lodged their respective appeals to overturn the decision, they were denied by the FIFA Appeal Committee.

On Sept. 8, 2016, FIFA issued a statement confirming that both Madrid clubs have been rejected in their appeals to overturn the decision. The one-year FIFA transfer ban shall affect both teams, and will include the 2016-17 winter and 2017 summer transfer windows. During this period, both teams are not allowed to register any new players for both national and international competitions. However, releasing players is not prohibited. Apart from the transfer ban, the clubs have also been slapped with fines. Real Madrid and Atletico Madrid have to pay CHF 360,000 and CHF 900,000, respectively.

Both clubs have issued official statements, claiming that they will continue to fight the decision. “The club will begin the appropriate appeals procedure before the Court of Arbitration for Sport (CAS), requesting that the decision be completely overturned, with absolute confidence that said organisation will come to an entirely favorable decision,” read the Real Madrid statement.

Atletico echoed the same sentiments, and both clubs are expected to lodge new appeals. The transfer ban will affect movement in both team’s rosters for at least two seasons. The penalties have been imposed after both clubs were investigated for breaching the FIFA rules on registering minors. “Young footballers are vulnerable to potential exploitation and abuse when they are in a foreign country without proper controls. While international transfers might, in specific cases, be favorable to a young player’s sporting career, they are likely to be contrary to the best interest of the vast majority of players as minors,” reads an excerpt from the FIFA website which explains the regulations.