DERRY City FC have had their contract with the League of Ireland terminated.
The sensational turn of events came after a specially convened of the Football Association of Ireland (FAI) Board of Management on Saturday.
Many had expected the club to be demoted to First Division football next season, but instead shocking news
emerged that the FAI had in fact taken the decision to terminate Derry City's contract with them.
In a statement released to the media a spokesman for the FAI said: The Board of Management of the Football Association of Ireland today (November, 7) took the decision to terminate Derry City Football Club's contract to participate in the League of Ireland. The decision to terminate is based on the failure of Derry City FC to comply with terms and conditions of the Participation Agreement, in particular their breach of clauses 8.2, 8.3.1, 8.3.4, 8.3.5, and 8.3.6 of that contract."
The statement also said that officials at Derry City FC have admitted to "holding second unofficial contracts" with players at the club.
"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 on November 4 (held at the request of Derry City FC), to holding second unofficial contracts with its players. There is contractual evidence to substantiate this.
"Subject to the ongoing cooperation of Derry City Football Club being forthcoming, the Board had agreed that an FAI delegation will in the coming week, meet with Derry City FC and the various other stakeholders to consider how Derry City Football Club may participate in senior football in the League of Ireland next season, at some level other than the Premier Division. This of course will be subject to the normal licensing process."
Derry City had been due to play St Patrick's Athletic in the Setanta Sports Cup on Tuesday night but because of Saturday's shock events, the game has been postponed.
Meanwhile, Chairman of Derry City FC, Pat McDaid, has said the club will pursue every available legal avenue to challenge the FAI's decision.
A press conference has been called at Brandywell Stadium for 2pm this afternoon, (Sunday, November 8).
