UPDATE 2-Soccer-Sheffield United lose appeal in Tevez affair

(Adds details, quotes)

By Trevor Huggins

LONDON, July 3 (Reuters) - West Ham United will play in the Premier League next season while Sheffield United will be in the second division after their appeal against relegation was dismissed by an arbitration panel on Tuesday.

Sheffield United had challenged the decision of an independent Premier League commission to fine West Ham United, rather than dock points, for breaking rules when they signed Argentine pair Javier Mascherano and Carlos Tevez last August.

In a tense finish to last season, West Ham stayed up by winning seven of their last nine league matches, with Tevez scoring six goals in that spell. Sheffield United won only two of their last nine games and went down on the final day.

The three-man arbitration panel's decision to back the Premier League means Sheffield United will now start next season on Aug 11 at home against Colchester United. West Ham will kick off the new Premier League season at Upton Park against Manchester City.

"We are obviously very disappointed by this conclusion in particular in circumstances where the tribunal recognised that the outcome of the (commission's) decision turned out to be, in the panel's own words, 'unfortunate in the extreme' and that Sheffield United have done nothing to merit this outcome," the Blades said in a statement.

"We are currently considering these findings with our professional advisers."

The arbitration tribunal issued a summary, explaining their verdict and sympathising with the Yorkshire club.