The Donegal county board has denied reports that the Naomh Colmcille club has already been suspended from all adult competitions for eight weeks.
The north-Donegal club is facing a ban for hosting a charity soccer tournament on their grounds but an official sanction has yet to be finalised.
The county board say an eight-week ban is the minimum punishment for hosting an unauthorised event.
Naomh Colmcille say they plan to lodge an appeal against the punishment.
The Newtowncunningham-based side allowed one of their pitches to be used for a fund-raising tournament in aid of local man Paul Dillon, who has been diagnosed with motor neuron disease, in February.
The Donegal county board statement read: "Following media coverage that the CLG Naomh Colmcille were suspended for eight weeks, CLG Dhún na nGall have received numerous requests for comment.
"In clarification, the club is not currently suspended but the findings of an investigation has recommended suspension for eight weeks - this is the minimum period of suspension for holding an unauthorised tournament.
"Due process shall take place and CLG Naomh Colmcille have the right to prove these findings incorrect or mis-applied.
"CLG Dhún nan Gall are unable to make any other comment on the matter until it is resolved in its entirety and all avenues of appeal open to CLG Naomh Colmcille are exhausted."
At Annual Congress in February, the GAA's rules were changed to allow county grounds to host non-Gaelic games but the rule-change does not extend to club grounds.