And because there are no rules in place that require contracts between coaches and clubs to be negotiated by an accredited agent, he is also not prevented from managing the two AFL coaches currently on his client list, Carlton's Brett Ratten and Western Bulldogs' Rodney Eade.
But Prendergast said that despite these factors, the penalty was still severe.
"I wouldn't underestimate the significance of the decision," he said.
"There may be some people that comment as to his ability to continue to run his business, but the ability to negotiate contracts on your players' behalf is a significant tool for a player agent.
"And in addition to that, obviously a player agent's reputation is what they rely on in growing and maintaining a successful business."
Nixon, who stood down indefinitely as a manager on March 7 to seek treatment for a "substance problem", will have to reapply for his accreditation at the end of his suspension, at which time the findings of Galbally's report will once again be taken into account.
Should Nixon wish to dispute his ban, he has 14 days to announce an appeal to a grievance tribunal.
The AFLPA will now offer advice to players under Nixon's management on their best course of action, but association CEO Matt Finnis said there would be nothing preventing them from remaining with Flying Start.
"That's a matter for players to determine, but our accreditation is granted to individuals, and players can make a decision as to whether they want to be represented by Flying Start," Finnis said.
"We've been keeping in constant communication with Flying Start clients throughout the previous weeks, because clearly it's a difficult position for them to be in.
"We've been contacted by players and we've given advice to players throughout, and we'll continue to do that."
Finnis also said initial discussions were underway with the AFL to give the League some jurisdiction over player agents in future, following criticism over the AFLPA's handling of the matter.
"I can only go off conversations I've had with senior executives at the AFL, and those conversations have been based around how we can work together to bring player agents within the ambit of the AFL rules and jurisdiction for very specific matters, such as gambling and perhaps some matters of a conduct nature," he said.
AFL CEO Andrew Demetriou said the AFL accepted the board’s finding that Nixon’s actions breached the standards of conduct governing the accreditation of agents.
"The AFL has said from the outset that this is a very serious matter and Mr Nixon's actions were inappropriate and totally unacceptable," Demetriou said.
"The most important thing in all of this is the welfare of the young girl involved. From the moment she first came to our attention in May last year, we have offered her support and assistance and that offer remains should she wish to accept it."
He said the AFL would work in conjunction with the AFLPA and the acceditation board to review how the conduct of player agents was regulated.
"We will continue to consult with the AFLPA to review the training and education offered to AFL player agents, particularly as it relates to programs like Respect and Responsibility but also other welfare issues including drugs and alcohol."
More to come
