MANILA, Philippines—(UPDATED) Philippine Olympic Committee (POC) President Ricky Vargas acknowledged that the country is likely to face some consequences for not sending a basketball team to the 2018 Asian Games.

The Samahang Basketbol ng Pilipinas (SBP) announced late Thursday night that it is withdrawing from the Asiad, just a few hours after naming Yeng Guiao head coach and confirming that the core of Rain Or Shine will represent the country.

Vargas, speaking to reporters via phone-patch on Friday, said he expects the Philippines to be sanctioned by the Olympic Council of Asia (OCA) for its decision.

"I think so, there will be a sanction which is probably monetary," he said. "I'm pretty sure that there will be, but what I don't know is if there is a sanction outside of a fine."

OCA has yet to respond to SBP backing out, but it has policies on teams pulling out of sanctioned competitions.

Article 57 of the council's constitution and rules states that "the withdrawal of a duly entered delegation, team or athletes without the consent of the OCA shall be the subject of disciplinary action."

A bylaw to Article 57 states that the OCA "will levy financial and other penalties on any (national Olympic committee) which withdraws its team as a whole from team competitions after the draw is completed."

This is the first time in 12 years that the Philippines will not participate in the Asian Games. The country was suspended by FIBA in 2006 amid a leadership crisis and thus did not send a team to the Asiad in Doha, Qatar.

Vargas said the country has yet to inform the Indonesia Asian Games Organizing Committee (INASGOC) of its decision to withdraw.

"Wala pa kaming naririnig," he said when asked about the INASGOC's reaction.

"We've not formally informed them of the withdrawal of SBP, but I'm sure within the day, we will be able to inform them already," he added.

Vargas does not anticipate that SBP's decision will affect its relationship with Indonesia, a crucial issue as the two countries will be co-hosting the 2023 FIBA Basketball World Cup along with Japan.

"I think they will understand what we are going through," said Vargas, who also acts as PBA chairman.

"I think the relationship of the SBP with the Indonesian Basketball Association is quite strong, and it will withstand this decision."

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