The new Sydney National basketball League side is in danger of folding, only two months into the season.
The ANBL says the Spirit is in a perilous financial position and owner Greg Evans is planning to put the team into administration.
Players are complaining of being kept in the dark about the situation.
The League is also in discussions with potential buyers for the Spirit's license, and says the situation highlights the need for more strict guidelines for new NBL teams.
The previous club in Sydney, the Kings folded last season.
The Spirit are currently 6th on the table.