The Warriors have been docked four competition points and fined nearly $500,000 after being found to have breached the NRL salary cap.
In a statement released on Monday the NRL said the club had been informed they would be issued with a breach notice detailing the loss of four points for the 2006 season and a fine of AUS$430,000 for salary cap breaches.
"The Warriors breach over the 2004 and 2005 seasons relates to total payments of close to $1 million," the statement said.
"Included in the breach are undisclosed payments, un-registered agreements with third parties and guaranteed payments to players after retirement.
"In ensuring the team is under the cap in 2006 the Warriors will also have their effective salary cap spending capacity reduced for the 2007 season."
This is the first time any team in the competition has been stripped of points before the start of the season.
NRL boss David Gallop said the Warriors breach was extremely serious and the penalty reflected that.
"We can't have a system whereby clubs can gamble on breaking the rules, knowing that they can solve the issue at the end of the year by simply writing a cheque for a fine," Gallop said.
"Those charged with the responsibilty of running a club for the owners, sponsors and fans have to know they not only risk one season by breaking the rules, but that they can affect a club for years to come.
"The Warriors matter is a serious breach, it is not the biggest we have recorded but it is above anything that has simply incurred a fine in previous years.
"It has certainly been mitigated to some extent by the transparent actions of the current management.
"They are to be acknowledged for the professional manner in which they have conducted themselves, but even that can not completely negate what has taken place."
The Warriors will have five working days to appeal the penalty.
In a statement released on Monday the NRL said the club had been informed they would be issued with a breach notice detailing the loss of four points for the 2006 season and a fine of AUS$430,000 for salary cap breaches.
"The Warriors breach over the 2004 and 2005 seasons relates to total payments of close to $1 million," the statement said.
"Included in the breach are undisclosed payments, un-registered agreements with third parties and guaranteed payments to players after retirement.
"In ensuring the team is under the cap in 2006 the Warriors will also have their effective salary cap spending capacity reduced for the 2007 season."
This is the first time any team in the competition has been stripped of points before the start of the season.
NRL boss David Gallop said the Warriors breach was extremely serious and the penalty reflected that.
"We can't have a system whereby clubs can gamble on breaking the rules, knowing that they can solve the issue at the end of the year by simply writing a cheque for a fine," Gallop said.
"Those charged with the responsibilty of running a club for the owners, sponsors and fans have to know they not only risk one season by breaking the rules, but that they can affect a club for years to come.
"The Warriors matter is a serious breach, it is not the biggest we have recorded but it is above anything that has simply incurred a fine in previous years.
"It has certainly been mitigated to some extent by the transparent actions of the current management.
"They are to be acknowledged for the professional manner in which they have conducted themselves, but even that can not completely negate what has taken place."
The Warriors will have five working days to appeal the penalty.
