The Northern Tasmania Football Association division one competition will be reduced to nine teams this season with Bridport going into recess for 2022.
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The NTFA confirmed the decision was made at a meeting on Tuesday night at the Seagulls' clubrooms.
An NTFA statement said the call was made "with a heavy heart" and the club's focus is on returning to the competition next year. A long-term planning strategy is underway.
The statement added the club was in a sound financial position but didn't have the numbers to field two teams.
NTFA president Scott Rigby praised the club for doing its best in a tough situation.
"The NTFA commends the Bridport Football Club for the mature and open way in which it has engaged with the NTFA in relation to its challenges," he said.
"It was afforded every opportunity to field two teams, but it is clear that this will not be achieved this year. The club worked tirelessly to achieve its goal."
The association statement said Bridport would remain a member of the NTFA and continue to receive support as it worked toward a return to the 2023 men's division one competition.
The club will host an Auskick centre this year.
The NTFA is amending the men's division one fixture which will be distributed in coming days. The season starts on April 2.
Bridport Football Club committee also put out a statement on the club's Facebook page.
"It is with great disappointment that Bridport Football Club 2022 playing season will not be going ahead," it read.
"Unfortunately our player numbers were diminished to a point where fielding two playing teams was not at all possible.
"Through many discussions and support with the NTFA, fielding just one team was not equitable to either our club or those from other clubs within the association.
"This brought us to the heartfelt decision for the Bridport Football Club to go into a recess for this season."
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