''When the sons of the desert can buy themselves an ice hockey team, then the highest alarm should be sounded,'' said Hans Hansen, president of the West German Sports Federation. ''This is overstepping the limits of political good taste. All sport would suffer from the consequences of such political insanity.''

The Libyans have so far kept out of the fray. Weifenbach invited reporters to a local discotheque today for a news conference at which he promised to produce his sponsors from the Center for the Studies and Researches of the Green Book. But no Libyans came. Undeterred, Weifenbach, a head of a construction company, produced a contract written in Arabic, along with a hand-written translation, in which he said the Libyan center had agreed to pay the Iserlohn club about $900,000 to advertise the ''Green Book'' on its jerseys and in its arena.

Flanked by two lawyers, Weifenbach said he would do everything to get his club back onto the ice, where it had been a respectable contender in the top West German league before it was undone by financial troubles. Iserlohn, which was founded in 1959 by Canadian soldiers serving in West Germany and still features a Canadian flag in its insignia, had been playing in the top West German league since the club was taken over by Weifenbach and a group of associates six years ago. Large Tax Bill

But in those six years, the team also accumulated a large debt, including about $3.4 million in back taxes. This year, tax authorities took the club to court. The court appointed a receiver to raise the money, if necessary by selling the club's assets.

To stave off the dismantling of his club, and evidently the loss of large personal investments, Weifenbach needed cash quickly. He recalled that a few years earlier, the man who was the mayor of the town in which he lived had tried to drum up business with the Libyans. Weifenbach got the names of his contacts and flew off to Tripoli.