((HT: BBC Sport))
Chelsea have been banned from signing any new players until January 2011 by football's governing body Fifa.
The Premier League club was found guilty of inducing French winger Gael Kakuta ((pictured, thanks Getty Images)), 18, to breach his contract with Lens when he joined in 2007.
"Chelsea is banned from registering any new players for the two next registration periods," a statement on Fifa's website read.
Chelsea can appeal against the decision to the Court of Arbitration for Sport.
Fifa's dispute resolution chamber (DRC) ruled Kakuta must pay compensation of 780,000 euros (£682,000), for which Chelsea are "jointly and severally liable".
Lens lodged a complaint with world football's governing body after Chelsea had signed the winger two years ago.
Now the DRC has ruled Kakuta breached his contract with Lens and that Chelsea induced him to do so.
BBC Sport's James Pearce tries to explain the significance of the whole thing...
Those of us at OSG HQ want you to look at it this way... think of this as if the Yankees got busted for collusion and couldn't pick up a free agent for two seasons...
That's huge... and we know Roman Abramovich is steaming mad right now...
Yes, Chelsea is appealing...
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