The FAI has banned Bray Wanderers from registering any new players for the remainder of the Airtricity League Premier Division season.
They will also remove the Seagulls from the 2018-19 IRN-BRU Scottish Challenge Cup, which is open to the top-two Irish teams who don't qualify for Europe.
The Wicklow club failed to meet an FAI-imposed 5pm deadline to pay their players the seven weeks' wages they're owed.
The players' union, the PFAI, are set to officially serve the club with seven days' notice for strike action tomorrow, which was passed "by overwhelming majority" in a vote, putting their game against Cork City on July 27 in danger.
The FAI said: "While the club insist that they are moving closer to a resolution, the FAI have imposed sanctions on the club following their failure to transfer monies owed to players by the set deadline."
The governing body said they've been engaging with Bray over the weekend and today to resolve the club's financial crisis.
They will meet again tomorrow morning "in the hope that a resolution can be found to ensure that all monies owed to players are paid in full".
With Limerick FC players reportedly set to hold a ballot for strike action tomorrow, also over unpaid wages, FAI officials are set to meet with Limerick FC this evening.