NRL chief executive David Gallop said the league leaders had come forward following allegations in a Sydney newspaper.

"What was unveiled was an elaborate use of payments by parties other than the football club to breach the salary cap rules," Gallop said.

"There has been a deliberate disregard of the rules by persons at the club which has resulted in substantial payments above the AUS$3.25m (�1.15m) cap."

Gallop would not comment on sanctions for the Bulldogs, but said heavy fines, loss of competition points or expulsion were all possibilities.

Expelling a team from Australia's top-flight rugby league competition would be unprecedented.

"The club has today detailed a AUS$600,000 (�210,000) breach for the 2001 season, a AUS$400,000 (�140,000) breach for 2002," said Gallop.

"On the one hand it is rewarding that the Bulldogs have come forward with an open attitude.

"But clearly there has been conduct designed to gain an unfair advantage over the other teams in the competition."

The NRL will send its auditors in to investigate the Bulldogs' financial records before a sanction was imposed.

Appropriate penalty

Bulldogs president Gary McIntyre said it was possible they could be suspended for the rest of the season, but he hoped a fine would suffice.

"We acknowledge we've done the wrong thing and we've got to pay an appropriate penalty," he said.

The NRL had called for a full report from the club following the newspaper article in Sydney's Daily Telegraph.

The Bulldogs, who have won 17 of their past 18 matches, lead the NRL by five points with three home-and-away rounds remaining.