The Sharks will also have $350,000 cut off their cap allowance for the next two seasons as part of the punishment.
The NRL wanted to slap the club with a $750,000 fine according to The Daily Telegraph’s Buzz Rothfield, but as CEO Barry Russell reported the breaches to the NRL the club have received a reduced punishment.
The Sharks will now have to offload one of their stars weeks before the season.
James Segeyaro only signed for the club on Tuesday, given an indication that the Sharks might get away punishment-free.
But the hooker, whose contract is yet to be registered by the NRL, could be the first to go as Cronulla seek to become salary cap compliant.
(Cronulla Sharks captain and Sharks CEO Barry Russell front the media – Picture: News Corp Australia)