Bailey, the former Melbourne coach, and his former football boss Chris Connolly were the main victims of the AFL's investigation into the Demons' on-field performance during the 2009 season.
The League found Bailey had "acted in a manner which was prejudicial to the interests of the AFL" as a result of comments made by Connolly relating to Melbourne securing a priority pick that year.
Crows senior coach Brenton Sanderson tweeted a message of support for his assistant shortly after the League handed down its verdict on Tuesday afternoon.
"The AFC coaches and players will support 'Bails' 100 per cent," Sanderson tweeted.
"Huge loss for us, but we'll still find a way to get the job done."
Chairman Rob Chapman said he was "extremely disappointed" with the "significant" penalty handed to Bailey, who joined the club in 2012 after being sacked by Melbourne late in the 2011 season.
"The Adelaide Football Club will continue to provide its full support to Dean during this time and is totally committed to retaining him as a valued employee of the football club," Chapman said in a statement.
Bailey will not be allowed to perform any match-day role or work with players while suspended.
His lawyer Chris Pollard told AFL.com.au Bailey was "very disappointed" but had accepted the outcome and was highly unlikely to take the matter further.
He stressed that Bailey had not been found guilty of coaching to lose.
"There was no question that Dean was totally co-operative with the investigation over a long period of time," Pollard said.
"Dean is a very admirable man, and through the whole situation, and from the date of his termination up until the present he has acted admirably.
"I emphasise that there is no evidence from the investigation that he was not coaching to his utmost and coaching to his merits.
"The fact is he has not been found guilty of not coaching to his merits."
The AFL Coaches Association said on Tuesday it was disappointed with the penalty given to Bailey but commended the Crows for supporting him.
Bailey becomes the third Adelaide staff member now serving an AFL-imposed suspension.
CEO Steven Trigg is two months into a six-month ban for his role in the Kurt Tippett affair, while football manager Phil Harper is nearing the end of his two-month suspension for the same matter - but list manager David Noble said the Crows would have "no problem" covering the loss of Bailey.
"I don't think it's any harder (with the loss of Bailey)," Noble said.
"When the chips are down our coaches and our players are very much a group that's got strong character that are prepared to get in and cover for what's required.
"We think we've got some staff that will cover the areas no problem at all."
Noble insisted Bailey had plenty to offer the club during his suspension, even indicating a move into sales could be on the cards for the versatile former senior coach.
"I don't think it's any harder (with the loss of Bailey)," Noble said.
"When the chips are down our coaches and our players are very much a group that's got strong character that are prepared to get in and cover for what's required.
"We think we've got some staff that will cover the areas no problem at all."
Noble insisted Bailey had plenty to offer the club during his suspension, even indicating a move into sales could be on the cards for the versatile former senior coach.
