The UEFA Club Financial Control Body (CFCB) investigatory chamber revealed that the Serbian champions had been referred to the CFCB adjudicatory chamber in April, due to overdue payables to clubs and employees.
Subsequently, UEFA have punished the club with exclusion from Europe's premier club tournament, although they have 10 days in which to appeal to the Court of Arbitration for Sport (CAS).
"The Adjudicatory Chamber of the UEFA Club Financial Control Body, chaired by Jose Narciso da Cunha Rodrigues, has taken its decision in the case of FK Crvena Zvezda (Red Star Belgrade)," read a statement from UEFA on Friday.
"The CFCB chief investigator referred this case to the Adjudicatory Chamber in early April after becoming aware of the existence of overdue payables as a result of a complaint.
"The CFCB Adjudicatory Chamber determined that the club were in breach of a number of provisions of the UEFA Club Licensing 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 (CAS)."
The statement also revealed that an investigation could be forthcoming against the Football Association of Serbia for "alleged breaches of the club licensing regulations in relation to the granting of the licence to the same club".
