Liverpool's Suso has been fined £10,000 by the Football Association for calling team-mate Jose Enrique "gay" on Twitter.
The 19-year-old Spaniard has also been warned about his future conduct.
Suso last month posted a photo of Enrique having his teeth whitened with the comment: "What f*** is he doing? This guy is gay... he does everything except play football."
The attacking midfielder later deleted the tweet and uploaded the photo with a different comment, saying: "I dunno what to say..."
Suso has now been reprimanded for the remark.
The FA said in a statement: "Following an independent regulatory commission hearing yesterday, Liverpool's Jesus Fernandez Saez (Suso) has been fined £10,000 and warned as to his future conduct for a comment posted on Twitter.
"The charge, which the player admitted and requested a paper hearing, was that he acted in a way which was improper and/or brought the game into disrepute in that the comment was posted on his Twitter account and included a reference to a person/s sexual orientation and/or disability."
Is amazing how fa can fine my friend @suso30fernandez for a banter thing. Was just a joke!!!— jose enrique sanchez (@jose3enrique3) December 18, 2012
Suso has become an increasingly important member of the Reds' first-team and has made 13 appearances so far this season.
He moved to Anfield from hometown club Cadiz in 2010 and signed a new long-term contract in October.
Enrique later took to Twitter to express his surprise at Suso's punishment.
"Is amazing how FA can fine my friend Suso Fernandez for a banter thing. Was just a joke!!!" the Spaniard wrote.