The Cronulla Sharks are being investigated by the NRL over possible salary cap breaches.
The NRL has confirmed it is looking into alleged illegal payments to players during the 2015 and 2017 seasons.
Sharks chief executive Barry Russell made the NRL aware of potential “discrepancies” relating to historical third-party player payments discovered during a club-instigated governance review.
The Sharks asked the NRL’s Integrity Unit to make inquiries into salary cap matters at the club.
"Those inquiries are on-going so we are not in a position to comment further at this stage," a NRL spokesman said on Tuesday night.
"However, based on the information available, the Sharks and all other clubs are salary cap compliant for 2018."
It’s understood the Sharks have spent the requisite 95 per cent of their cap for the current season, leaving them with about $500,000 to play with.
The club won the Telstra Premiership in the 2016 season beating Melbourne Storm. But the irregularities that the Sharks uncovered themselves under an audit earlier this year, reportedly do not relate to the title-winning season.
The matters were raised when new CEO Barry Russell took over in March this year from former chief executive Lyall Gorman.
There had also been a change in chairman from Damian Keogh to Dino Mezzatesta, who took over the reins in June 2017.
Russell had auditors go through all the club's finances so he could get a full handle on the situation as he began his new role.
A report by News Corp today claimed an irregular payment to a player had been discovered in 2015. But there were other questionable third party payments (TPAs) made in 2017 and the total amount could be around the $250,000 mark.
Under NRL rules, while there is no limit on the amount of TPAs for players to be paid on top of their salaries, clubs cannot negotiate them. They must be done at an arm's length from club officials and executives but also must be declared to the NRL.
The Sharks released a statement confirmed these "salary cap discrepancies" related to historical third-party player payments, and were discovered during a Club instigated governance review.
"The Sharks self-reported to the NRL and asked for their assistance in investigating this matter," it said.
"The club is fully cooperating with the NRL Integrity Unit, allowing them access to any information they require to complete their investigation.
"The discrepancies occurred under previous club management. This is a historical issue, we are currently salary cap compliant for the 2018 season having passed our mid-season salary cap review."
The NRL is only in the early stages of its investigation and it’s too soon to determine whether other anomalies will arise.
On the information currently on hand, a fine would be the most likely outcome, while the club could also be penalised by a reduction in their salary cap for one or more years.
Earlier this year, Manly were fined and had $660,000 taken off their salary cap for the next two years. The Sea Eagles have appealed the sanction, with a final determination imminent.
The Sharks sit fourth on the ladder heading into their final round clash against the Bulldogs at ANZ Stadium on Sunday.
- nrl.com, Fairfax Media