Saracens will be relegated from the Premiership at the end of the 2019/20 season, Premiership Rugby has confirmed.
Darren Childs, chief executive of Premiership Rugby, said in a statement: "Premiership Rugby is prepared to take strong action to enforce the regulations governing fair competition between our clubs.
"At the conclusion of dialogue with Saracens about their compliance with the salary cap regulations, it has been decided that Saracens will be relegated at the end of this season.
"At the same time as enforcing the existing regulations, we want to ensure a level playing field for all clubs in the future, which is why we have asked Lord Myners to carry out an independently-led review of the salary cap."
The club, bottom of the table with minus seven points, will continue to compete in the top flight until the end of the season.
Neil Golding, chairman of Saracens, said: "As the new chairman of Saracens I acknowledge the club has made errors in the past and we unreservedly apologise for those mistakes.
"I and the rest of the board are committed to overseeing stringent new governance measures to ensure regulatory compliance going forward."
The charges relate to a failure to disclose player payments in each of the 2016/17, 2017/18 and 2018/19 seasons.
The Premiership champions have won four of the last five titles. Premiership Rugby introduced its salary cap in 1999 to ensure the financial viability of all clubs and the competition.
A timeline of Saracens' salary cap scandal
March 3, 2019
Saracens say they have no case to answer after Premiership Rugby Ltd (PRL) announces it is examining whether the champions might be in breach of the salary cap.
March 11
Saracens owner Nigel Wray says the club are "open and transparent" in terms of the salary cap rules, but adds "investment is not salary" amid revelations he had co-invested into companies with leading players.
April 10
PRL reveals Saracens had not shared with it the details of all the co-investment arrangements, but confirmed the required information had been received. Saracens protest their innocence.
November 5
Saracens docked 35 points and fined £5.36million by a heavyweight independent panel after being found to have breached salary cap regulations for the three previous seasons, leaving them at the foot of the Premiership on minus 26 points. Chairman Wray says the club are "devastated" by the "heavy handed" sanction and declares he will appeal.
November 6
Exeter owner Tony Rowe says Saracens should be relegated. Wray insists Saracens will not have to offload players and repeats his claim they have not exceeded the cap.
November 13
Saracens appoint PR firm FTI Consulting to handle the fallout from the scandal. FTI representatives block salary cap questions at club briefings.
November 17
Saracens drop plans to appeal against the fine and points deduction.
November 18
In an apparent admission of guilt, Wray says: "We have made mistakes and so, with humility, we must accept these penalties. As a club, we will now pull together and meet the challenges that lie ahead."
January 2, 2020
Wray steps down as chairman but pledges to continue financing the club. Ed Griffiths is reappointed chief executive and issues Saracens' first public apology for the scandal.
January 6
Griffiths admits Saracens must reduce wage cuts or offload players to fall under the £7million cap for the current campaign.
January 16
Reports emerge that Saracens could be automatically relegated following a PRL meeting. Wray severs all ties with the club.
January 18
Premiership Rugby announced that Saracens will be relegated from the Gallagher Premiership at the end of the 2019-20 season.
Additional reporting by PA.
