But Valentine Eleebana Junior Rugby League Football Club is reeling after being told its Under-10 and Under-11 teams would not compete against other clubs for the remainder of the season, amid an accusation The Devils have disobeyed an order not to grade teams in those age groups based on skill level.

Instead, the U10 and U11 teams - three sides in each age group - will play "intra" matches against each other as punishment from Newcastle Junior Rugby League until The Devils are perceived by the governing body to have fallen into line with the directive issued earlier this year.

But those associated with the club say the teams have not been put into grades.

They say the club is being punished for having a strong nursery of players and top coaches and that if their players were shuffled into different teams, the results would be similar.

While a NSW Rugby League spokesman said in a statement to the Newcastle Herald on Friday that no teams had been stood down, the Valentine Eleebana faithful see the punishment as suspension from the competition.

Brett Murphy, a former treasurer of the club who coaches his son's U10 side, said the teams were "100 per cent not graded".

He said of the 13 players in his team, eight of them had been together since the Under-6 age group.

Mr Murphy said the league's ruling meant that young players faced the prospect of being split from teammates they have had since they were five years old - he said his son was "devastated" at what was happening.

"We've got good quality coaches, a quality club and systems that develop players," he said.

"I feel like we're starting to get penalised for that."

In an email sent to parents and guardians of players on Friday, Newcastle Junior Rugby League said it was with "great disappointment and frustration" that it had to take punitive action after checks of the playing rosters in the first two rounds prompted a warning to The Devils - which the league felt was ignored in round three.

"It is the genuine wish of the NJRLA board that Valentine Eleebana JRLFC comply with the direction ... as other member clubs have done," the email said.

"Once compliance has been met the Valentine Eleebana JRLFC U10's and U11's will move into the remainder of the season in normality with the rest of the competition."

Grant Duthie said his son, a member of an U10 team, had played for the club since he was five-years-old and was upset over the action taken against by the league.

Dr Duthie - a senior university lecturer in exercise science who has worked as a high performance manager for South Sydney Rabbitohs, strength and conditioning coach with Newcastle Knights and also spent time in junior development for Australian Rugby Union - said the amount of talent in those age groups at the club meant it would make little difference if players were shuffled.

"If they spread the teams they are going to get the same results," he said.

"We've got good talent and they've been exposed to good coaching.

"[Newcastle Junior Rugby League is] punishing kids that are talented that are in a good development program.

"I'm happy with the non grading, if they want to do that, but I think the experiment has failed."

Megan Farrell, whose son plays in an U11 team, said she was concerned about the impact the action from Newcastle Junior Rugby League could have on the young footballers.

"It is absolutely disgraceful and unwarranted," she said.

When contacted for comment on Friday a NSWRL spokesman said in a statement that no teams or players had been "stood down" from participating.

"An issue has arisen with the Valentine Club because of their failure to follow national guidelines for participation in Junior Rugby League," the spokesman said.

"The NSWRL has reached out to the Valentine Club to resolve the issue but the offer to meet with the relevant NSWRL officials has not been taken up.

"The NSWRL remains committed to working with all clubs, including the Valentine Club, to find solutions which maximise participation in Junior Rugby League."

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