Soccer:Derry City have been stripped of their contract to compete in the League of Ireland Premier Division after a crisis meeting with the FAI at Abbotstown this afternoon found the club to have held "secondary unofficial contracts with its players".

The FAI Board of Management “took the decision to terminate Derry City Football Club’s contract”. It means the club must now reapply to become part of the league.

The Brandywell outfit have been struggling to meet their financial commitments for some time with players largely unpaid for the last nine weeks. Other debts have been mounting to the point where, while estimates vary considerably, there appears to be upwards of €300,000 owed in total.

This evening’s statement issued by the FAI confirmed the Brandywell outfit’s wrongdoing with regards player contracts.

“The Board of Management of the FAI reached its decision following statements from FAI personnel that Derry City FC had admitted to them at a meeting of November 4th (held at the request of Derry City FC), to holding second unofficial contracts with its players. There is contractual evidence to substantiate this."

As a result the FAI has agreed that a delegation will meet with Derry City and relevant stakeholders in the coming weeks to consider how the club can move forward and compete in senior football next season.

Derry will not be allowed to compete in the Premier Division and participation in any other league depends on the normal licensing process.

Today’s outcome means the forthcoming Setanta Sports Cup match involving Derry City next Tuesday has been postponed, pending discussions with the Irish Football Association, through the Setanta Sports Cup Committee.

On the relegation front Drogheda United will now play bottom of the table side Bray Wanderers in the Premier Division play-off next Tuesday.