St Kilda goal sneak Stephen Milne has been fined $3000 by the club and ordered to undertake an education program for a homophobic slur against Collingwood defender Harry O'Brien.
Milne directed the comment towards O'Brien during the Saints' six-point loss to the Pies at the MCG on Saturday night.
The pair were seen arguing during the third quarter of the match after Milne gave a free-kick away against Darren Jolly, and umpire Dean Margetts could be heard cautioning the Saint about his language before awarding the Pies a 50m penalty.
An AFL investigation ruled the comment breached the league's policy on discrimination and vilification, prompting the Saints to fine the star, who this season played his 250th game for the club and kicked his 500th goal.
AFL General Manager of Football Operations Adrian Anderson supported St Kilda's decision to fine Milne.
"It is simply not acceptable - even in the heat of battle - for AFL players to use homophobic insults on the football field," Anderson said.
"The AFL investigated player Milne's comments last weekend at the MCG and found that they breached the Players' Code of Conduct and also the AFL's policy on vilification.
"The St Kilda Football Club is to be commended for taking this action and sending a strong message that homophobic comments are unacceptable."
The incident is the latest on-field verbal stoush between Milne and the Pies, after the 32-year-old was called a 'rapist' by then-Collingwood coach Mick Malthouse in 2010.