كتب : Hatem Maher
Graz were initially hit with a 10-point penalty for 'filing for bankruptcy and failure to fulfill corresponding criteria'.
They were sanctioned by a further 12-point deduction for breaching procedures of acquiring a league license, in addition to six points imposed by FIFA earlier this month for failing to compensate a former player.
The court's ruling means that the sanction imposed by the Austrian Bundesliga has been withdrawn to ease Graz's relegation worries.
However, the Bundesliga revealed they will appeal the verdict.
Graz are now eighth in the league table with 30 points after they were originally slipped to the bottom.
Egyptian midfielder Riad, who joined Graz from Ahli on loan until January 2008, insists that his contract with the Austrians includes a relegation release clause that allows him to leave the club at the end of the season.