Salford have been docked six points after being found guilty of breaching the Super League salary cap.
The Red Devils were also fined £5,000 by an independent tribunal for breaking the Rugby Football League's operational rules and salary cap regulations concerning contractual arrangements made with three players in 2014 and 2015.
The tribunal, chaired by Judge Peter Charlesworth found that Salford had committed a serious breach of the rules including exceeding the finite salary limit of £1.825m in 2014.
The points deduction will be imposed immediately, which means Salford drop to 11th in the Super League table, above only bottom club Huddersfield on points difference.
The tribunal also found Salford not guilty of a number of offences concerning contractual arrangements with two players.
The club have 14 days from the receipt of the written reasons for the decision in which to lodge an appeal.
But Red Devils owner Marwan Koukash told Sky Sports News HQ he was not considering an appeal because the club "would not get a fair trial", because it "would be another court by the RFL".
By a quirky twist of fate, Koukash had tweeted on April 1 that Salford had been docked six points for breaching the cap and pledged to fight the punishment.
The wealthy racehorse owner was in bullish mood as he entered the RFL headquarters at Red Hall, on the outskirts of Leeds, with a three-man legal team, expressing his confidence about the outcome, but he was a downcast figure when he emerged six hours later.
"The tribunal have made a decision which we disagree with," said lawyer Paul Barrow, of Liverpool-based Quinn Barrow solicitors
"We're disappointed, six points is ridiculously unfair on a young squad who are trying really hard and have got lots to aim for this season."
The RFL launched their investigation into Salford's affairs after Bradford chairman Marc Green initially raised questions over their signing of Tony Puletua from St Helens in 2014.
Koukash insisted his club did nothing wrong over Puletua and also maintains his actions in gifting 2015 player of the year Niall Evalds with a Maserati car were carried out within the regulations.
"We had a very good case and we were confident and were very shocked by the outcome," Koukash told SSNHQ.
"We haven't done anything wrong. We haven't breached the salary cap."