The Senegalese Professional Football League (LSFP) handed a seven-year ban to US Ouakam following the crowd trouble which left eight people dead during the League Cup final against Stade de Mbour last month.
The LSFP's disciplinary committee said it holds US Ouakam "exclusively responsible" for the tragedy at the Stade Demba Diop on 15 July.
US Ouakam were further punished with a demotion to the lowest tier of Senegalese football at the end of their seven-year suspension.
The 2011 Senegalese League Champions have also been issued with a fine of 10 million francs (CFA) with Stade de Mbour being awarded the trophy as winners.
US Ouakam had been temporarily banned in the immediate aftermath of the tragedy which started moments after visitors Stade de Mbour had taken a 2-1 lead in extra-time.
That goal resulted in the collapse of a wall following fighting between fans.
US Ouakam said they will appeal the decision.
"We are going to appeal this penalty, which seems to us to be heavy and disproportionate, the Commission has been too heavy handed," Club President Abdou Aziz Guèye told local media.
"We are not sure that these kinds of sanctions will put an end to the violence in our country," he added.
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