AC Milan has been was fined €12 million (NZ$19.9 million) by Uefa and threatened with a one-season ban from European competition for breaking financial fair play rules.
Uefa said its club finance panel ruled the ban will be activated if Milan fails to break even on soccer-related business in June 2021.
If Milan fails to comply, it will be banned for the next Uefa competition it qualifies for in either of the 2022-23 or 2023-24 seasons.
The decision was announced the day after Milan was eliminated from the Europa League in the group stage.
The €12 million will be deducted from its prize money.
The fine is one of the biggest imposed by Uefa since financial fair play sanctions began in 2014.
Then, Manchester City and Paris Saint-Germain had €20 million withheld from their Champions League prize money.