Norwich have been ordered to pay Colchester £425,000 in compensation after admitting a breach of Regulation 20 which relates to the movement of personnel between clubs after appointing the management team of Paul Lambert, Ian Culverhouse and Gary Karsa in August.
The Canaries have also been fined £75,000 with a further suspended fine of £125,000 by the Football Disciplinary Commission convened by the Football League but no points deduction - which Colchester chairman Robbie Cowling had wanted - has been imposed on the club.
That will only be activated if they commit a further breach of Regulation 20 during the next two years.
Chairman Alan Bowkett told the club's official website: "We always wished to agree amicable terms of compensation with Colchester but regrettably we were unable to do so.
"Norwich City always strives to develop and maintain good links with our fellow clubs and it was disappointing the two clubs could not find a way to see eye to eye on the issue of compensation.
"A lot of the detail of this dispute and the exact nature of the FDC findings remain bound up in confidentiality so we can not comment any further."
He added: "However, we do accept and will meet the orders of the FDC and, financially, provision has been made in our cash flow for sometime to enable us to do so. We should assure our fans the sums ordered are something we have budgeted for and will have no impact on Paul Lambert's player budget for next season.
"The priority for the board was to ensure this dispute had no impact on Norwich City's march towards promotion out of League One.
"As was aired in public by Mr Cowling, he believed from the outset that we should be subjected to a points deduction. We are delighted that the FDC held otherwise. In the interests of moving on and focussing on football we will not be appealing the decisions.
"Furthermore as we are looking forward we feel our relationship with the Colchester board should resume its normal friendly rivalry. We trust this will be reciprocated.
"We look forward to putting this matter behind us and to reflecting on the appointment of a management team that we are confident can continue its success in the coming seasons."
Copyright (c) PA Sport 2009, All Rights Reserved.
Do YOU want to write for GiveMeSport? Get started today by signing-up and submitting an article HERE: https://www.givemesport.com/writeforgms