Mayor Johnny DuPree says the city is temporarily suspending the operating license of the popular night spot following the shooting. The three players remained hospitalized.
Hattiesburg police have said officers have been called to the night club 129 times between January and September of this year. No arrests were made as a result of those calls.
DuPree says the license suspension will be in effect for 30 days. It will not affect other businesses in the area.
The club's owner has 10 days to appeal and request a hearing with the city council.
A person familiar with the situation says Southern Mississippi football player Martez Smith is paralyzed from the waist down.
The person spoke to The Associated Press Tuesday on the condition of anonymity because he was not authorized to discuss details of the player's medical status.
Smith, Tim Green and Deddrick Jones were shot in the parking lot of a Hattiesburg nightclub after it closed early Sunday morning. They were celebrating the team's win over 25th-ranked Central Florida on Saturday. All three players were listed in fair condition.
Police said Tuesday that they have arrested two people in connection with the shooting and they are seeking a third suspect.