Football club FC Twente on Friday lost its fight against relegation to the Jupiler league, when judges found in the football association’s favour.

The Dutch football association’s players council said last month the club should be sent down one league next season for failing to get its finances in order. The club had risked having its professional licence removed altogether.

‘This is about the future of the club,’ interim director Onno Jacobs said last month when he announced the legal challenge. ‘I’m not saying this for dramatic effect – it is the bitter reality if this decision is pushed through… Demotion means that a large number of our financial agreements would fall apart or come under pressure.’

In March, the club withdrew its 2014-15 annual report after discovering ‘potential’ irregularities surrounding transfers. The club has also been fined over €200,000 and banned from playing in Europe for three years because of the fall-out over a deal with investment company Doyan.

In 2014 Doyen agreed to put €5m into the club in return for a percentage of the transfer fee for seven players. However, leaked documents showed the deal gave Doyen considerable say over Twente’s transfer policy, which the club had denied and which is banned by the KNVB.

The decision to relegate Twente means De Graafschap will remain in the Eredivisie next season despite losing the relegation battle in May. Twente can, however, still appeal.