The verbal abuse occurred during a Division Seven match between Sorskogens IF and the Stockholm Snipers, The Local.se reported. The Snipers make a special effort to recruit gay, lesbian and transgendered players.
Mitt i Hudinge, a local newspaper, reported Sorskogens players called "all of you have HIV" and other insults at the Snipers during the recent match.
"It was a little unpleasant when we went into the dressing room after the game. One of our players was also threatened after things got a little heated on the pitch," Snipers Coach Christoffer Smitz told Sveriges Radio.
The Stockholm Football Association fined Sorskogens officials 5,000 kronor ($755) and ordered them to attend a course on tolerance.
Sorskogens Chairman Ketil Torp said this week the first-string players would be cut.
"We had no choice but to suspend the entire team. That kind of language isn't appropriate for football or anywhere else," he told Mitt i Hudinge.