AFC Champions League Elite trophy. Photo: AFC's official website.
The Chinese Super League side were booted out of the region's Champions League Elite in February after withdrawing hours before a game against South Korea's Ulsan.
The Asian Football Confederation's (AFC) disciplinary and ethics committee has now barred the team from all AFC tournaments "up to and including the 2026/27 season", according to a summary of a July 30 decision posted online on Monday.
It fined the club $50,000.
Shandong was ordered to repay a $600,000 participation fee and a $200,000 performance bonus to the Kuala Lumpur-based AFC.
It must also pay compensation of $40,000 to South Korea's Ulsan for "damages and losses claimed".
After withdrawing at the 11th hour from the February 19 match, Shandong said they were "unable to form a team" because of "serious" health issues within the travelling squad.
"We deeply regret this situation and apologise to the AFC, Ulsan FC, the fans, and the community," they said at the time, without explaining exactly what the health issues were.
They had done pre-match media duties on the eve of the game.
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