Both teams were hit by a 10-point penalty for 'filing for bankruptcy and failure to fulfill corresponding criteria'.

GAK were sanctioned by a further 12-point deduction for breaching procedures of acquiring a league license, in addition to six points imposed by FIFA earlier this month for failing to compensate a former player.

The substantial reduction will see AK Graz demoted to last place with a tally of minus one point.

Austrian Bundesliga head Georg Pangl explained the situation in a statement on the league's official site.

"Unfortunately, this year's competition won't be battled out on the pitch only," said Pangl.

"Qualifying for the Bundesliga is not purely based on one's sporting results."

It is clear that fines would be irrelevant given the financial crisis in both clubs, the fact which forced the sanction by the Bundesliga.

Both clubs have the opportunity to hand in appeals until April 5th, 2007.

Graz had signed Egyptian midfielder Riad in January on-loan from Egyptian champions Ahli.