While Collard will now await his sanction, the Saints have indicated they could appeal the tribunal's decision to uphold the charge of conduct unbecoming.
Collard had rejected suggestions he called his Frankston opponent a "f*****" during a VFL match last month.
The 21-year-old, who was banned for six matches for using the same homophobic word in 2024, was adamant he did not use it this time.
The marathon hearing took place on Thursday, but the tribunal panel did not reach a determination before the 5pm deadline.
Deliberations resumed on Friday morning before the judgment was made public late that evening.
There will next be a hearing to determine the sanction.
On Thursday, the AFL pressed for a 10-week suspension for Collard, rather than a 10-match suspension.
"The AFL acknowledges the decision of the independent disciplinary tribunal today to uphold the charge against Lance Collard of the St Kilda Football Club following a finding that he breached AFL Rule 2.3(a) (Conduct Unbecoming) by the use of a homophobic slur directed towards an opponent in a VFL match on March 27," the AFL said in a statement.
"A sanction hearing will now be convened to determine the sanction at a date and time to be determined.
"The AFL has no tolerance for the use of homophobic language in our game and its expectations have been made extremely clear to all of our players, including by education that all AFL and VFL players receive."
The case could drag on, with St Kilda considering their options, including a potential appeal.
"St Kilda Football Club is naturally disappointed with the decision handed down by the AFL disciplinary tribunal this afternoon," the Saints said in a statement.
"The process is ongoing, with further submissions from both parties to be made on any penalty. A date for this next step is yet to be confirmed.
"The club is also reviewing the tribunal's written findings and will consider its position, including avenues of appeal. We will continue to support Lance throughout this process.
"As the matter remains ongoing, the club will make no further comment at this time."
Collard insisted he said, "Come here, maggot", to Frankston player Darby Hipwell.
But Hipwell was adamant that was not the case.
"He had his head up against my ear and he said the words to me, 'Darby, you 'f***ing f*****'," Hipwell said.
The allegation was supported by Hipwell's teammate Bailey Lambert.
Hipwell and Collard previously played together with VFL club Sandringham when that side was St Kilda's state-league affiliate.
Collard has played 15 AFL games, after being taken by the Saints in the 2023 draft.
He is already serving a two-match ban stemming from a high hit on an opponent in the same VFL match he allegedly used the homophobic slur.
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