Parramatta will lose 12 competition points and have been fined $1 million for salary cap breaches.
Five Parramatta officials, including chairman Steve Sharp, have also been banned from the game as part of a raft of penalties the NRL confirmed on Saturday.
“… we have to take a strong stand to preserve the integrity of the salary cap and the competition,” NRL chief executive Todd Greenberg said.
The breaches date back to the 2013 NRL season.
Greenberg said the governing body had carefully considered the responses from the Parramatta club and the five officials to breach notices issued more than two months ago.
“The overall impression that I got from the responses is that no one at the club has taken responsibility for the deliberate, systemic and blatant breaches of the salary cap,” he said.
Sharp, deputy chairman Tom Issa, director Peter Serrao, chief executive John Boulous and football manager Daniel Anderson have had their registrations cancelled. The Eels have also been stripped of their 2013 Auckland Nines title.
Parramatta defeated the Sydney Roosters in their round 18 clash on Friday night, but the Eels now find themselves in 12th place on the NRL ladder with 12 competition points.