REPORTS: Smith being investigated by salary cap auditors

The NRL is investigating potential extra earnings being made by Storm star Cameron Smith at a testimonial lunch, as reported by The Sydney Morning Herald.

The veteran skipper is undertaking the event to celebrate his career, with fans able to attend the event for a couple of hundred dollars.

The Sydney Morning Herald asked the Storm if the event was to raise funds for charity, but received no answer.

It was former NRL executive Dave Smith who agreed to Smith getting a testimonial match and two tribute lunches before he retires, who is set to play on in 2019.

There is a belief that this may be a subtle way of the paying Smith outside of the salary cap, with rival clubs reportedly not trusting Melbourne.

The Sydney Morning Herald has revealed that an auditor is looking into the matter and one of the lunches have already been removed from the agreement.

Furthermore, the NRL has warned the Storm they may include funds raised from the testimonial into the club's salary cap to ensure Smith's contract is not cheating the system.

For example, if the Storm reduced Smith's contract by $100,000 because he already made that money from his testimonial events, the NRL may add that amount to their salary cap.