NSW Liberal MP for Manly Mike Baird has called for the Sea Eagles to be awarded the 2007 premiership, after the Melbourne Storm were stripped of the title.

The Storm were also stripped of their 2009 premiership and fined a total of $1.6 million after being found guilty of massive, long-term salary cap breaches.

But while Melbourne lost the titles, NRL chief executive David Gallop said neither of the losing grand finalists, Manly and Parramatta, would assume those titles.

Baird, who is opposition treasurer, called for Manly to be awarded the 2007 gong and the financial rewards that would have come with it.

"If you win a premiership there is obviously a lot of upside financially and if we'd won that premiership, which it appears we should have now, then there is no doubt that the funds that flowed could have gone to developing Brookvale (Oval)," he told reporters on Thursday.

"And we'd be calling on those funds, should they become available."

The $1.1 million the Storm earned in prizemoney will be distributed evenly between the other 15 NRL clubs.

Baird described the news as "incredible" and "sad" for all fans of rugby league."

"I think all of us who love sport, and I love my sport, love every part of rugby league," he said.

"It is sad news. I think all of us believe when you get on the field ... it's a fair contest and it is really disappointing."

Parramatta chief executive Paul Osborne believes the massive punishments handed out to salary cap cheats Melbourne are fair.

Osborne also said he will talk to NRL chief executive David Gallop this week about his side not being awarded the 2009 premiership, after the Eels lost last year's grand final to the Storm.

The Storm have been stripped of their 2007 and 2009 crowns, but Parramatta and Manly, who lost the 2007 decider, will not be handed the premierships because in previous years, points deductions did not lead to other teams benefiting in the regular season.

The Storm were fined a total of $1.6 million after being found guilty of long-term salary cap breaches and can't accrue any points this season, with the points they had already won this season expunged.

"I will have to speak to David about that decision, but can't say too much more because I don't know why they have done that," Osborne told AAP.

"It is a momentous day but also a sad one.

"The penalty is very severe, one of the most severe in sport, and sends out a clear message to clubs."

Osborne said he had no inkling that the Storm were rorting the cap, but said clubs know the risks and must expect to face the penalties, after the Bulldogs were docked 37 points in 2002 for cap breaches.

"The NRL have made it very clear and we have seen over the last few years with the Bulldogs what can happen," he said.

"I can't say I had any idea about it and I have only just arrived in Townsville so I am not to able to say too much more."

Manly coach Des Hasler, whose team lost the 2007 grand final to the Storm, said he was stunned by the news, but refused to comment on his feelings about the Storm being able to keep their best players illegally.

Steve Folkes, coach of the 2002 Bulldogs, said he remembered the tears and stunned looks when he told his players the finals-bound club had been stripped of 37 premiership points for salary cap breaches.

Folkes is well-placed to give insight into what's facing the Melbourne players after league's greatest salary cap scandal cost the Storm such a high price.

His team went from first on the ladder to last in one hit with three rounds to go and had to play on knowing the wooden spoon was a formality.

"I don't know how the Melbourne guys will go playing for the rest of the year," said Folkes, not all that surprised at the breach given the depth of players at the Storm.

"We (Bulldogs) were lucky we had three games left and we could summon up enough strength to play those last three games."

Folkes noted that the Bulldogs managed to recover to win the premiership just two season after their 2002 low point, but that involved the players taking pay cuts - something Melbourne stars may have to contemplate if they're to stay together.

"It was an extremely difficult time for everyone when we were told we'd lost 37 points because we were travelling pretty well at the time," he said.

"I can remember one guy crying. The rest had blank looks on their faces, they could barely speak.

"I remember thinking all the hard work they'd put in had come to nothing."

The Bulldogs, whose team included a very young Johnathan Thurston and Braith Anasta, along with Willie Mason, Steve Price, Mark O'Meley, Hazem El Masri, Luke Patton and Kiwi internationals Nigel Vagana and Roy Asotasi, woke to the news after round 23.

"All the (Bulldogs) players agreed to take a pay cut so we were under the salary cap in 2003-04 and for the remainder of their contracts.

"I don't think we lost any players from our group in `02 and a lot of them, (Braith) Anasta, (Johnathan) Thurston, Roy Asotasi, they were quite young and been their since they were teenagers.

"They coped with it pretty good and obviously we came back and won a premiership in 2004.

"It'll depend if the (Melbourne) players, or the players' managers, are prepared to take a pay cut.

"They've probably got two or three of the top five players in the game I would think."

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