League: Eels to challenge NRL ruling

The Parramatta Eels are set to challenge the NRL's ruling after the were found to have breached the salary cap. Photo / Getty Images

The Parramatta Eels will challenge the NRL's ruling on salary cap breaches, club chairman Steve Sharp has announced.

Parramatta are facing a fine of $525,000 and losing competition points next season after the NRL issued a breach notice to the club on Thursday for overspending by more than $400,000 across four of the game's salary cap categories last year.

Sharp released a statement on Saturday saying the club planned to challenge some of the organising body's rulings.

"Today, the board of the Parramatta Leagues Club has reviewed the preliminary breach notice issued to the Parramatta National Rugby League club this week by the National Rugby League in detail and resolved to challenge the ruling on a range of matters," Sharp said.

Parramatta have accepted some of the breaches that led to the NRL fine but is challenging aspects of the rulings.

After a board meeting on Friday, the club resolved to fight some of the matters, in particular that they conduct an independent review.

The club has announced plans to call in accounting firm Price Waterhouse Coopers to conduct a review without the NRL's involvement.

Sharp also condemned as "a breach of trust" the NRL's threat to deduct four competition points next year unless reforms are implemented by February.

"The current Eels administration is the only NRL club administration to have attempted constitutional change consistent with the NRL's governance policy and the only current NRL club with a constitutional reform committee, led by a newly-elected and united board," Sharp said.

"As the NRL acknowledged and made clear on Thursday, our club is compliant across all four NRL and NYC salary caps for 2015 and forecast to be so again in 2016."

The hapless Eels lost 14-12 to South Sydney on Friday night and sit last on the NRL ladder.

PARRAMATTA CAP BREACHES FROM 2014

* NRL Top 25 - $101,718

* NRL 2nd tier - $233,036

* NYC Top 20 - $60,915

* NYC 2nd tier - $8277

-AAP