Following on from the Gold Coast debacle that saw billionaire owner Clive Palmer stripped of his license and bring an abrupt end to the club, Newcastle Jets are now set to fold as well.

Jets and Hunter Sports Group (HSG) owner Nathan Tinkler surprisingly handed back his license on Tuesday.

Tinkler cited a lack of confidence in the FFA's administration for his decision to remove the 2007-08 premiers from the competition.

The mining magnate was also critical of the A-League's financial viability, suggesting far too much money was being lost each year.

The announcement comes as a big blow to the A-League who announced the addition of a new team in Western Sydney last week to begin competing in the 2012-13 season.

Despite the A-League seemingly in disarray, Kosmina rejected the notion the domestic game was weakened, suggesting football in Australia was in a much 'healthier' state than compared to competitions of the past.

The former Sydney FC coach was also adamant Tinkler would come to regret his decision, following the uproar it has caused with the Jets players and supporters group.

"I was here at the start of the NSL in 1977 and the game is much healthier now than it was back then and certainly much healthier where it's positioned in the Australian sporting landscape as well," Kosmina said.

"I remember the first season of the A-League picking up the Daily Telegraph and reading how one A-League game had attracted more people than three rugby league matches in Sydney.

"That wasn't that long ago and I think that's what we need to put more perspective on. In terms of the Newcastle issue, it will resolve itself. There are enough people in Hunter Valley who care about football.

"I think Nathan Tinkler might find out that you don't dirty your own nest, which is what he has done. He's really done the wrong thing by the local football community in Newcastle."

Kosmina also touched on Tinkler and Palmer's criticisms of the A-League's financial stability.

"I don't think any professional sport is financially viable. How much did Gold Coast lose last season? More than 20 million (dollars)," Kosmina said.

"Gold Coast Titans in the Rugby League are over 25 million dollars in the red ... even Manchester United is half a billion pounds in debt.

"Professional sport relies on benevolent billionaires. That's how (it) survives all around the world.

"In terms of those in the A-League (Palmer and Tinkler), you have got to ask whether they really want to be in the game, and if they did, the league wouldn't be in the situation it is."

With expansion continually on the horizon in the A-League, Kosmina felt it was time the A-League consolidated itself with what it has now for years to come, rather than continually tinker with the set up and risk further teams crashing.

"The league needs to consolidate itself, it's still very young and in reality it's only seven years old. Compare that to of the AFL, which has been a truly national competition for almost 25 years," Kosmina said.

"Clubs need to probably reign in their spending as well, and have a look at how they spend their money and where they spend it rather than just throw money at something in the hope of fixing it.

"When you throw money at things, generally you have to throw more at it and it doesn't get better, it gets worse, and creates more problems you need to solve.

"Buying success for me has never worked, it's about building success and there's a big difference between the two."