Toulon owner and president Mourad Boudjellal has been slapped with a €75,000 fine for serious misconduct.
European rugby's governing body, the EPCR, said comments he made last January "allegedly condoned homophobic conduct, discriminated against and insulted various groups, and brought the game of rugby into disrepute by attacking, disparaging and criticising EPCR".
An independent disciplinary committee upheld the complaints in their entirety.
They also placed the threat of a five-point deduction on Toulon, suspended for three seasons, for any repeat of similar misconduct by any Toulon representative.
Boudjellal faces an additional €25,000 fine for a repeat offence, suspended for three years.
The comments came in defence of Mathieu Bastareaud’s use of a homophobic slur during a Champions Cup game.
Mathieu Bastareaud
“In my view, we’re talking about an insult that has entered common language,” said Boudjellal at the time.
He also criticised the morals of the Irish and Welsh among the governing body.
“I’m worried. What I fear is the Mormon side of the EPCR with the Welsh and the Irish.
“These are people who sell morality when they do not have it. The same people who have ministers who are whipped in private but considered ‘clean’ guys in public.”
