In a big setback to the game in the city, the 48-year-old Mahindra United Football Club will be disbanded at the end of the ongoing I-League season, club officials announced on Friday.

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The team, a property of automobile giant Mahindra & Mahindra, has decided to focus on the grassroots.

“We have decided to get out of competitive football at the end of this season and get into the school level. This means at the end of the I-League, we would not be taking part in any competitive football, but will be training school kids to make them better at the game,” said club chairman Alan Durante.

There was speculation about the club facing financial constraints after 25 of its 27 players were not offered contracts for the next season. Durante quashed the reports, saying, “This decision has nothing to do with the finances. No club in India makes profits anyway. This is purely a strategic decision.”

The shutting down of one of the city’s oldest football clubs has taken the sports fraternity by surprise since Mahindra not only has one of the strongest teams in the country, but have also been instrumental in developing age-group teams.