Premier Penrith will appeal against the severity of a fine imposed by the National Rugby League for a technical breach of the salary cap.

The Panthers were fined $50,000 by the NRL on Wednesday for failing to declare certain payments in the 2002 and 2003 seasons.

The club said it was never over the salary cap and confirmed the breach related to the re-adjustment of captain Craig Gower's contract over two years ago.

"While we were never over the cap, we did fail to itemise the change in our report to the NRL for that year," Penrith chief executive Shane Richardson said.

"Subsequently we made the NRL aware of the situation."

Meanwhile, South Sydney described the salary cap as rugby league's best friend and reiterated it had not breached the league's $3.25 million limit.

The Rabbitohs put out a press release clarifying their $5,252 fine for what they described as a "very minor" breach of the second tier $300,000 cap.

That cap is for players used in first grade who come from outside the top 25 at each club.

The Rabbitohs breached that $300,000 limit last year, with the club blaming a massive injury toll.

Souths was forced to use 39 players in first grade last year, including 14 players from outside their top 25.

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