Liverpool have been banned from signing academy players for two years after admitting to a charge of breaching Premier League rules.
The Reds offered illicit inducements to a player registered to Stoke City, leading to an investigation being launched last month.
It was claimed at the time that Liverpool allegedly tapped up an unnamed Stoke youngster and altered an agreement over his school fees, which left the family in thousands of pounds of debt after being made to pull out of a deal.
A statement on behalf of the Premier League read: "The League found evidence demonstrating regular communications between representatives of the club and members of the player's family.
"This included hosting them at Anfield for a match with expenses paid and other efforts to encourage the player, via his family, to sign for Liverpool. League rules strictly prohibit the offer of any inducements to encourage a move."
As well as being handed a ban from recruiting new players at academy level, albeit with the second year suspended for a further three years, the Merseyside outfit have also been fined £10,000 by the Premier League.