Barcelona have had a second appeal rejected to register midfielder Gavi as a first team player.
The Nou Camp giants had their original effort turned down by LaLiga back in January as the club were also banned from adding to their squad.
However, Mundo Deportivo is reporting that the club’s appeal against overturning the first-team registration of Gavi has been rejected.
Barcelona registered Gavi as a first-team player on January 31 after obtaining a precautionary measure from the court.
But LaLiga filed an appeal against the same as they cited the fact that Xavi’s side had missed the deadline.
The court allegedly ruled in favour of the Spanish league earlier this month but no concrete verdict was reached as Gavi was allowed to continue as a first-team member.
But this fresh update states the financially troubled club appealed against the ruling last Wednesday but had their appeal rejected by the 10th Commercial Court of Barcelona.
That means that Gavi, who is a full Spanish international, will no longer be counted as a first-team member and must revert back to his youth contract until the end of the season.
And in what could be a huge boost for Manchester United and Liverpool, the attacker will also be deregistered for the next season as Barcelona have exceeded their salary limit, reports The Sun.
Barca will now have to significantly reduce their wage bill in summer, or find new sponsorships to register contracts.
Player sales appear the most likely way to get the situation under control and Premier League clubs are among those who could be circling.
United and Liverpool have been joined by Bayern Munich in the race to sign Gavi.