LAWYERS for James Hird are preparing to lodge paperwork for a Federal Court appeal on Thursday morning as the coach breaks ranks with his club over the supplements scandal.

Essendon has decided it won't appeal Justice John Middleton's emphatic judgement in favour of the Australian Sports Anti-Doping Authority (ASADA) and its investigation into the club's 2012 supplements regime.

The latest drama has again plunged the club into turmoil as players, staff, supporters and sponsors gathered at Crown Casino for Wednesday night's Crichton Medal dinner.

It's understood Essendon's board will wait for Hird's legal team to formally lodge paperwork, before assessing the state of play.

With Hird heading down his own path, the club could be left with no choice but to stand its coach down. He is contracted for two more seasons.

The divide between the club's administration and its coach was evident following crisis talks on Wednesday afternoon, where some senior players were also in attendance.

Asked if Hird's position had become untenable, chief executive Xavier Campbell was non-committal.

"We need to sit down with James tomorrow, and certainly as a board we need to sit down later this week and determine what the next steps will be," Campbell told Channel Seven.

Hird left the meeting saying he thought his position was fine.

"I think so, I hope so anyway," Hird said.

"I haven't had a chat to Paul (Little) today, but I think everything's OK.”

Further complicating matters is Mark Thompson's situation.

The 2014 stand-in coach has been linked to Gold Coast after Guy McKenna's axing on Wednesday, but it's believed Thompson is due to fly overseas in the coming days for a long-planned holiday.

It remains unclear whether ASADA can or will re-issue show-cause notices against 34 past and current Bombers players while Hird goes through the appeal process, considering the club itself has accepted the court's original decision.

ASADA had previously indicated it would re-issue the show-cause notices, and provide players with a summary of evidence, once the appeal period had expired. has approached ASADA for comment.

“The players’ association has been notified of Essendon’s decision not to appeal the Federal Court ruling,” he said. 

“We have also been notified of ASADA’s intention to issue amended show-cause notices to the 34 players and provide them with a summary of the evidence against them.

“The players welcome the club’s decision and urge ASADA – if it indeed intends to issue amended show-cause notices – to do so as a matter of urgency. This matter has dragged on for far too long. It is essential for all parties involved to take steps to expedite the process and bring it to a conclusion.

“We do not believe that an appeal by James Hird – if he does lodge one – should in any way disrupt the process.”