Sligo will not compete for the Tailteann Cup in three weeks time.
Tony McEntee's side lost narrowly to Down this afternoon in Croke Park after extra time.
Goals from Patrick O'Connor and Canice Mulligan put Sligo into a strong position for the win.
A controversial red card to Nathan Mullen opened the door for Down to claw back the gap and force extra time.
It was in extra time when Down earned a penalty, converted by Odhran Murdock.
Two points separated the sides in the end - Down will face Laois in the final.
Full time from Croke Park:
Down 1-20 Sligo 2-15 - after extra time
