Manly to fight NRL's salary cap penalty

Manly will challenge the NRL's salary cap penalties and take their case to the game's appeals committee.

Sea Eagles chairman Scott Penn says the club has lodged paperwork and will challenge the NRL's finding they were guilty of salary cap rorting.

The Sea Eagles were this week fined $750,000 and slugged $660,000 in salary cap penalties over the next two years.

However, the club maintains its innocence and says it will take the matter to the NRL's appeals committee, headed by Ian Callinan QC.

"We have just submitted the first stage of paperwork today, with more due next week," Penn told AAP.

"They will then advise the committee dates."

The NRL sanctioned the club after it ruled the Sea Eagles were guilty of salary cap breaches totalling $1.5 million, involving 13 players over five years.

Scott Penn. Pic: AAP

Chief operating officer Neil Bare and former chief executive Joe Kelly were also deregistered for 12 months.

Manly were accused of using third-party payments as inducements for players to sign with the club.

Under NRL rules, third-party sponsorships must be made at arm's length from the club.

Manly were found guilty of a similar scheme for which Parramatta were fined $1 million and docked 12 competition points in 2016.

Penn has always maintained the club didn't set out to systematically rort the salary cap and the allegations came down to a "technicality".

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