World football governing body FIFA informed the Betway Premiership club of their decision to impose the sanction on the club to prohibit the registration of new players.
The Chilli Boys had initially been ordered to settle the debt in March but have since been granted “until the next registration window period in August to settle the matter”.
Part of a club statement read: “The club would like to clarify that this is an ongoing administrative matter, currently being addressed in good spirit between the club and Mr Luc Nico Eymael.
READ: Betway Premiership: Resilient Polokwane Salvage point against Chippa United
“The outstanding amount is approximately R200,000, and the club has been granted until the next registration window period in August to settle the matter.
“This matter does not impact the club’s football operations.
“At present, the club’s full focus remains on the remaining five games of the season, with attention directed towards achieving positive results.”
Chippa are currently in 13th place on the league standings with 24 points from 25 games.