One captain withdrew from silly corona-infected league (13)

I believe the answer is:

confederation

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'league' is the definition.
(I have seen 'League of states' mean 'confederation' so perhaps 'league' could also mean 'confederation')

I don't understand the remainder of the clue.

Can you help me to learn more?

(Other definitions for confederation that I've seen before include "Loose alliance of political units" , "Union (of states)" , "League of states" , "Group of allies" , "Alliance of states" .)

I've seen this clue in the Sydney Morning Herald.

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