Jan 4 (Reuters) - Australian outfit Newcastle Jets' A-League and W-League licence has been terminated due to the club's failure to pay its debts, Football Australia and Australian Professional Leagues (APL) said on Monday.
The two bodies said a new licence would be issued to a consortium of APL club investors on an interim basis until a new investor is found, allowing the team to continue participating in competitions.
Current players of the club will be offered contracts with the new entity.
Football Australia Chief Executive Officer James Johnson said the team's owners - Newcastle Jets Club Pty Ltd - were given opportunities to solve the club's financial problems or sell the club to another investor.
The club's inability to pay debts as and when they were due meant that it breached the Club Participation Agreement.
"There were clear failings to adequately capitalise Jets to meet the minimum requirements set to run an A-League and W-League club, and to operate a company in accordance with Australian law," Johnson said.
"Following the recent announcement of the unbundling of the Professional Leagues from Football Australia, it's pleasing to see a group of existing APL club investors stepping in to assume control of Jets in the interim.
"It's important for Football Australia to remain separate to the ownership of the clubs so that it can effectively carry out its responsibilities as the governing body of football in Australia and regulator of the Professional Leagues."