Struggling Bundesliga side Cologne were hit with a year-long transfer ban on Thursday, just hours after parting ways with manager Steffen Baumgart.
The Court of Arbitration for Sport handed down the verdict for inciting under-19 player Jaka Cuber Potocnik to breach his contract with Olimpija Ljubljana.
Cologne will now be prevented from signing players in the next two transfer windows.
The verdict came hours after the struggling side “ended their collaboration” with the 51-year-old Baumgart.
“Steffen and his coaching team did an excellent job,” said Cologne managing director Christian Keller.
Keller said the “painful” decision came after an “open, direct and respectful” conversation, where Baumgart “questioned his personal convictions” to remain at the club.
Baumgart said: “The club is above everything and although we’ve invested a lot in recent weeks, the results have been lacking.
“It hurts to leave but I am grateful for my time here.”
Baumgart joined Cologne in the summer of 2021 and took the club into the Europa Conference League in his first season.
Cologne, who lost 2-0 against fellow relegation battlers Union Berlin on Wednesday, have won just two of 16 league matches this season.
Cologne have also faced further challenges off the pitch.
Earlier in December, Cologne were hit with a 595,000 euro ($641,800) fine after fans ignited pyrotechnics and threw objects on the field which delayed a match against derby rivals Borussia Moenchengladbach in October.
The fine is the highest penalty ever levied for fan misconduct in German football.
