Catania must play the rest of this season's games behind closed doors at a neutral venue after a ban on their Angelo Massimino stadium was upheld.
Tear gas was used to disperse Catania and Palermo fans
The ban, which will now run until 30 June, was imposed by a court after the death of a policeman during rioting by fans in a Serie A game against Palermo.
However, the fine imposed on Catania was reduced to £17,500 from £33,475.
Catania's failed appeal means they must play Inter Milan on Sunday at Cesena's Dino Manuzzi stadium.
When the ban was originally imposed on 14 February, Catania chief executive Pietro Lo Monaco was quoted as saying the ban would "bring the city to its knees".
"It was clear that our responsibility was limited by the fact that the violence happened outside the ground," Italian news agency ANSA quoted Lo Monaco as saying.
Policeman Filippo Raciti was killed outside Catania's ground during rioting by fans at the Sicilian derby with Palermo.
Italian football was temporarily suspended following Raciti's death and a reappraisal of stadium safety has since been undertaken.
The Italian Football League said the incident had left "an indelible mark in the memory".