The penalty, which includes a further two-week ban suspended until the end of the 2027 season, was announced at a sanctions hearing on Tuesday afternoon.
It comes after the tribunal last Friday upheld a charge of "conduct unbecoming" against Collard, who had denied allegations he called a Frankston opponent a "f***ing f*****" in a VFL match last month.
Collard, who was also banned for six matches when he pleaded guilty to using the same homophobic word in 2024, was adamant he did not use it this time.
Instead, the 21-year-old insisted he said, "Come here, maggot", to Frankston player Darby Hipwell.
But the tribunal was not convinced.
In submissions on Tuesday, AFL representative Andrew Woods SC argued there needed to be an increased penalty for repeat offending and proposed a 10-week ban.
"There should be an increased sanction by matches, rather than way of fine, to what happened last time," Woods said.
St Kilda's representative Michael Borsky KC urged the tribunal to "show some mercy" to Collard, noting the player's difficult upbringing and the possible effect a 10-week ban could have on his career.
Borsky suggested such a penalty would be "unfairly punitive", instead calling for a financial sanction, or at most a four-week ban.
He also said the AFLPA, via a letter submitted to the tribunal, had described a 10-week ban as "disproportionate and one that could risk constituting an unreasonable restraint of trade".
"It would, we submit, be potentially career-ending for this young man," Borsky said.
"You heard that he has only one year left on his contract and he has ... been in and out of the AFL team, as distinct from the VFL team.
"And so, to be perfectly frank, this is one of those sliding door moments that could set Lance Collard back on the wrong path and ruin his life."
In delivering its verdict, the tribunal said Collard's homophobic slur was "serious" and declared the use of such language "harmful and entirely unacceptable".
The tribunal also took into account that it was Collard's second offence and that he expressed no remorse by contesting the charge on this occasion.
"We do not make it part of this sanction, but we strongly urge Mr Collard to resume the awareness training that he undertook in 2024," the tribunal said.
"It's not clear on the evidence how many sessions Mr Collard attended, or over what period, but it is likely that that ongoing training over a period of time would be beneficial, particularly in respect to a person who has offended again."
The tribunal also noted Collard's use of the homophobic word did not appear premeditated and agreed with Borsky that a 10-week ban could have ended the player's career.
"A sanction that is excessive may be crushing in a sense that it could seriously impact or even end Collard's VFL/AFL career," the tribunal said.
Collard is also serving a two-match ban stemming from a high hit on an opponent in the same VFL match last month.
His fresh seven-week suspension will start after his striking ban is completed, meaning he won't be free to play at any level until June.
Collard has played 15 AFL games for St Kilda since being drafted in 2023 and is contracted until the end of 2027.
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