The panel emphasised the importance of maintaining integrity around eligibility rules and noted that while the breaches were not deliberate, they reflected an unacceptable lack of care, particularly in making relevant checks before providing the pre-season statutory declaration.
The panel also noted East Coast had been guilty of breaches in 2004 and 1998.
The Coast earned four competition points across the two competition matches in which Reid was ineligible to play, putting them in 11th position on the points table. The deduction of two points will see them drop to four points on the leader board, but this does not affect their overall standing.
Half the fine will be suspended for five years, provided the union does not breach regulations in that time.