It was announced on 11 April that the club were to be referred to UEFA's Club Financial Control Body (CFCB) after it was discovered a number of overdue payments to employees and other clubs. Now Red Star have paid the price after the CFCB confirmed their expulsion from the 2014/15 Champions League campaign, pending a possible appeal to the Court of Arbitration for Sport.
"Serbian champions FK Crvena zvezda (Red Star) have been excluded from the 2014/15 UEFA Champions League for breaching UEFA Club Licensing and Financial Fair Play Regulations," a statement on UEFA's website read.
"The CFCB Adjudicatory Chamber determined that the club were in breach of a number of provisions of the UEFA Club Licencing and Financial Fair Play Regulations.
"Accordingly Crvena zvezda are excluded from participating in the 2014/15 UEFA Champions League for which they had qualified on sporting merit.
"The club have ten days to appeal this decision before the Court of Arbitration for Sport."
Slavisa Stojanovic's side would have entered the competition at the second qualifying round stage after beating city rivals Partizan Belgrade to the title by just one point.
They failed to reach the UEFA Europa League group stages in the last campaign after falling in the third qualifying round to Chornomorets Odesa of Ukraine and it now looks as though there will be no European competition at the Red Star Stadium next season.