Football Federation Australia has issued the outspoken owner of Gold Coast United with a notice of termination of his A-League license for breaches of the club participation agreement.
Billionaire mining magnate Clive Palmer has been critical of the A-League and its administration in recent weeks as his club has floundered at the bottom of the 10-team domestic league.
FFA chairman Frank Lowy on Wednesday said the sport's national governing body had been "left with no alternative than to terminate the Gold Coast United's license'' after three breaches of the participation agreement in recent days.
Lowy said the FFA was examining ways of having a Gold Coast team contest the last four matches of the regular season.
The team are due to travel to Wellington for this weekend for a clash with the Phoenix.