The NRL refused to ignore several sizeable third-party agreements as part of the deal and have refused the move.
“The Rabbitohs will assess their salary cap position as determined by the NRL’s Salary Cap Auditor today and make a decision on a path forward over the next seven days.
“The Rabbitohs will do everything they can to keep Greg Inglis in Rugby League.”
But NRL chief David Gallop said the Rabbitohs are not entitled to special treatment under the salary cap rules.
He said in a statment: “Given the circumstances under which Greg became available to South Sydney, nobody can have been under any doubt about the importance of ensuring his contract complied with the cap.”
“The NRL had already required the Broncos to include third-party agreements within their calculation of the contract value and was insisting legal fees also be included when those negotiations ceased.
“They chose not to do so and it has taken some time to access all details of the agreements.
“It is unfortunate for Greg that he is in the middle of a difficult situation and I assured him this week that these issues do not reflect on him but that they are matters for clubs in assessing the offers that they make.
“He is one of the game’s most highly valued players and we have assured him of that in no uncertain terms.
“That said, the cap has to apply fairly to all clubs and one club cannot be allowed to do what others were prevented from doing.
“The rules on third-party deals are clear.
“We have worked with clubs and players by substantially increasing the amount that sponsors can pay players through the $300,000 marquee player allowance in 2011, but without rules on third-party agreements there would be no point in having a salary-cap system.”
Inglis, who last month, walked out on an agreement to join Brisbane, now looks set to pursue his career elsewhere.
A big money move to play rugby union in Europe – possibly in France – has been touted.