You are correct it is a privilege to play in the league, but that privilege should not be taken away from the players because one parent will not sign a contract, nor should the league threaten the action of removing the whole team because of the behaviour of one or a few adults. The offending adults should be the individuals who should have the consequences applied to them.
Again you example does not fit
I've seen teams banned from playing home games, cause a spectator threw stuff onto the pitch.
That is a dangerous and unsafe environment you are talking about......here it is a person telling a Ref to call the game fair, maybe questioning their ability. If the fans are tossing things on the ice......then the game is over and we are talking about the teams future as it is unsafe for all participants that are on the ice.
Play hard, play fair
The Diceman