Former All Whites captain Ryan Nelsen says New Zealand Football should continue to fight against disqualification from the Olympic Games.
Defender Deklan Wynne was declared ineligible during the Oceanic Olympic qualifying tournament in Port Moresby.
NZF confirmed on Monday they would appeal the decision that currently means they'll miss out on Rio next year.
Nelsen, 37, captained the All Whites at the 2008 and 2012 Olympic tournaments and he told Stuff.co.nz that NZF have "a duty of care to the players to take this (appeal) as far as they possibly can."
"It's devastating for the players, and not just for soccer. It's devastating for New Zealand sport, who won't have another Olympic team to follow," said Nelsen.
"For me, as a fan of New Zealand sport, you always want to watch New Zealand teams play at the Olympics. Whether it's hockey or soccer, it doesn't matter."
NZF's CEO Andy Martin said they were "embarrassed" by the disqualification, which had come about because of an administrative error but they still maintain they believed Wynne was eligible and he did play for the All Whites in the Fifa U20 World Cup.
Nelsen knows from his own experience how special it is to play at the Olympics and it can be the perfect shop window for players to seal a big move to Europe.
"The players did exactly what they were asked to do, in difficult circumstances as well. There's now a duty of care for New Zealand Football and the New Zealand Olympic Committee to take it as far as they can.
"There are so many scouts there. The whole world watches the Olympics. It's a significant stepping stone. It's a real shame.
"Rules are rules. That's why you pay for good lawyers, and good administrators. 99% of all sports people in the world would want to play at events like the Olympics and football World Cup finals."
Nelsen retired in 2013 after playing the final eight years of his career in the English Premier League. His last involvement in football was as head coach for Toronto FC in the MLS but he was sacked in August last year.