The outcome of the Football Association investigation resulted in the dismissal of Marcus Bignot from his position as coach of the Blues.
Bignot was charged by the Football Association for using inappropriate, abusive or insulting language during a Women's Super League game.
They condemned any form of homophobia.
Bignot was banned for seven matches for the offense.
He was ordered to attend a face-to-face education programme.
He had been accused of an "aggravated breach" by the FA because of the language he used.
According to the FA's written reasons regarding the commission's judgement, Bignot was found to have used the homophobic language during their 2-0 loss to Spurs in February.
After his agreement was suspended in March 2022, the club terminated his agreement and will no longer use him.
The club strongly condemns any form of homophobia and reiterates its aim to eliminate discrimination.