Liverpool has been banned from signing academy players for the next two years and fined £100,000 ($164,340) by the Premier League after being found guilty of breaching regulations in its attempts to sign a youngster from Stoke City.

The club was investigated after British media reports suggested it had offered a banned inducement to an 11-year-old player under rules introduced last year.

This included inviting and paying for the boy's family to a match at Anfield, and approaching them before it was allowed to do so.  

"In an investigation following that rejection, the Premier League found evidence that Liverpool’s conduct prior to applying to register the player contravened League rules," a Premier League statement on the matter 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."

The statement claimed Liverpool had accepted and admitted to the charges laid by the Premier League.

The ban not only relates to players attached to Premier League clubs, but also every English Football League club, provided that were registered in the preceding 18 months.

The second year of the ban has been suspended for a three years, and will be "activated in the event of any further similar breach by the club".

The rule Liverpool breached is Premier League rule 299.1, which states: "No Club shall induce or attempt to induce a player to become registered as an Academy Player by that Club by offering him, or any person connected with him, either directly or indirectly, a benefit or payment of any description whether in cash or in kind."

Stoke had been paying private school fees for the player in question, which Liverpool had a greed to continue doing until discovering the Premier League rule, which also states clubs are not allowed to offer private school education to only a select few of their academy players, which affects Liverpool as all its academy players are sent to Rainhill high School.