Malaga have been BANNED from UEFA competition for 12 months.
The club has also been threatened with a further year's continental ban unless they prove they have no debts to other clubs, players or the tax authorities.
The ban will be imposed if the club qualified for the Champions League or Europa League during any of the next four seasons.
UEFA says it will impose the additional ban unless Malaga provides the proof it has cleared its debts of 'overdue payables' by March 31. It has also fined the club £250k.
But the club have reacted angrily.
A strongly-worded statement from Qatari owners, the al-Thani family, said: "Malaga Club de Futbol wishes to communicate its total disagreement with today's UEFA decision.
"The measures taken against the club are absolutely disproportionate and unjustified given the club's situation. We consider that the club is being punished unfairly and used as an example to others.
"Given the total and absolute indignation and consternation on the part of the club, Malaga CF wishes to state that it will work energetically and without rest to achieve justice, using all available necessary means."