The suggestion you should bring up is
that the club consult its own lawyers.
As to concerns about discrimination, don't trouble yourself.
There's nothing much to worry about there.
The "irrelevant criminal behaviour" stuff to which
@Rod refers
is really only in play in employment,
and that's not what's happening here.
Understand also, that running the sporting competitions, and
(the business of) running the club, are different activities.
Complimentary, and conducted in parallel, but distinct.
In the scenario where the Association runs the sport overall,
but is not the regulator of the club itself,
I don't see the Association getting involved
in a club-internal matter of this nature.