Castlereagh League clubs could face 12-month suspensions and hefty fines if they are found guilty of paying their players.

At a committee meeting held at Gilgandra on the weekend, the competition's heads decided to put all clubs on notice about illegal payments.

League president Leo Selwyn said enough was enough.

"It's getting out of hand. If this keeps going, my worry is the Castlereagh League will fold," Selwyn said.

He said the committee knows some clubs are paying players but it can't be proved.

"Country Rugby League won't investigate because we can't prove it," he said.

"We know they are paying players.

"They can pay the [player's] travel but they can't pay the player [match payments]. It's getting ridiculous."

The committee will inform all clubs of their hard approach.

"Action will be taken. If teams are guilty the League constitution says the club will be banned from the competition for the season and fined. There is no mucking around."

Selwyn said if the illegal paying of players continues, he fears some clubs would leave the competition.

"Before too long we won't have a Castlereagh League. This is what buggered it up before.

"Gulgong won't put up with it anymore, Baradine have gone.

"I know it's hard for Castlereagh League clubs to contest against Mudgee, Dubbo and those likes because they are allowed to pay their players.

"If the players want to [chase the money], that's their prerogative. You can't go crook on a player that goes to Mudgee for that reason."

Selwyn said a points-based system for players could be the answer.

Under the system, clubs would get 100 points to spend on players and each player is worth a set number of points.

He said players from outside of the area would attract a higher points-tag.

He said clubs would import fewer players and rely on their local products more.

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