Football Federation Australia has revoked the Gold Coast United licence of Clive Palmer but hopes the players will fulfil their obligations for the rest of the season.
FFA chairman Frank Lowy said the governing body took the decision with immediate effect in the wake of Gold Coast owner Clive Palmer's outspoken criticism and breaches of at least three articles of the club participation agreement.
Palmer confirmed the move on Twitter: "Our licence is being rekoved by Frank Lowy and FFA cohorts."
"We intend to fight this ludicrous decision by incompetent FFA in the courts. Frank Lowy is an institution who now belongs in an institution," he tweeted.
The FFA's decision came two hours after Palmer extended a peace offering to Lowy but indicated he'd continue to defy FFA orders regarding the Freedom of Speech logo.
Fox Sports football commentator Robbie Slater said on Twitter: "Clive Palmer hang your head in shame. Well done Frank Lowy and Ben Buckley . Clive you disrespected the game . Bye."
The FFA will now seek to have talks with Gold Coast players to enter an agreement to play the final four games of the 2011-2012 A-League season. The FFA will pay the players' wages.
Wellington Phoenix have also been informed that there could be a real possibility that Sunday's round 22 match against Gold Coast United could be postponed.
The decision effectively means a nine-team competition for the 2012-2013 season, although Lowyleft the door open for the late inclusion of a tenth team.Gold Coast, under new ownership, would be a candidate as would a possible team based in western Sydney.
"We will do our darnest to have a 10-team competition, and I'm reasonably confident of that happening," he said.
FFA chief executive Ben Buckley said the FFA had exhausted all attempts to organise an exit strategy with no assistance from Gold Coast.
He then warned Palmer not to get in the way of the FFA as it tried to ensure a fair outcome for United's players and the rest of the league.
"As you are aware, Gold Coast had material breaches at Skilled Stadium last Saturday night (Freedom of Speech slogan)," said Buckley.
'"Over the past four weeks Gold Coast United has told us repeatedly it wanted to leave the competition at the end of the season.
"During the same period it has issued contradictory statements that it intends to stay while also signalling its intention to breach FFA policies.
"The FFA wants an orderly process where the club could complete its remaining fixtures in 2011-2012. We want to avoid problems with the standings of any of the other nine clubs, and achieve the fairest outcome in the competition.
"If Mr Palmer obstructs this attempt he should stand condemned by the entire football community."
Lowy said FFA were left with no alternative but to terminate the licence.
"I'm profoundly disappointed to have to make this decision ... but I was left with no alternative but to terminate the Gold Coast United licence," he said.
"As custodian of the game we had to act to protect the integrity of the Hyundai A-League on behalf of other nine clubs ... and, most important, the fans.
"We don't know what slogan he's going to put up next week.
"I made repeated attempts this morning to talk to Mr Palmer to make a dignified end to season."
