Actually there are a few more periods before the name is available again for the club to re-register. There is a redemption period and i believe another time span after that. If the site was popular at all it then domain name will probably be picked up by one of the companies that buys bulk domain names before it went back to just being publically available.
I've been in this situation before and the route I took was to advise the club that their site was hosted on my server, and to please make other arrangements and I would transfer the domain to them and give them backups of their site.
as far as selling the domain name to them goes, is it really worth it? Is it really theirs to begin with, and your just hosting it? Sure maybe you paid for it, but i bet you got something in return? Anyway this is a moral question, but if I were you I would just ask them what registrar they would like you to transfer it to and do it, no charge.