The massive fines came a day after the midfielders tussled following training. Uruguayan Valverde said in a post on social media on Thursday that no punches were thrown.
But Valverde knocked his head on a table and he suffered a small cut that required a brief hospital visit.
On social media, Valverde had initially called it a "meaningless fight" with a teammate and said "everything has been blown out of proportion."
His employers, however, considered it a significant enough breach of team discipline to nail both players with fines that bite even the bank account of a top soccer player.
The half-a-million euro penalties reflect the reputational damage the club was enduring in a chaotic end to a disappointing season.
In a statement, the 15-time European champions said the disciplinary action was concluded after both players expressed to the club "their complete remorse for what happened and apologised to one another."
Madrid added they also apologised to their teammates, the coaching staff and club supporters, as well as showing their willingness to accept whatever disciplinary action the club deemed "opportune."
French international Tchouameni was back training with Madrid on Friday, two days before they play at Barcelona in a clasico.
Madrid have to win, otherwise Barcelona will be crowned La Liga champions.
Valverde, though, was not at practice due to the head knock.
