The Auburn Warriors rugby league club has been forced to fold after embattled former Auburn deputy mayor Salim Mehajer allegedly reneged on a six-figure sponsorship arrangement.

The Warriors have been a long-time developer of football talent in the region and NRL players including Matt Utai, Omar Slaimankhel and Heka Nanai have worn their jersey. The club has fielded teams in the Sydney Shield and Ron Massey competitions, making the 2017 grand final in the latter.

Sponsor woes: The Auburn warriors say they upheld their end of the bargain, while Salim Mehajer didn't pay a cent in return. Credit:NSWRL

However, the Warriors can no longer afford to participate after a sponsorship deal with Mehajer worth $100,000 remains unpaid. It's alleged that Mehajer had agreed to pay that amount in return for having his company, Mehajer Brothers, emblazoned on Warriors jerseys, as well as signage at home ground Lidcombe Oval. While the club upheld its part of the bargain, Mehajer didn't pay a cent in return. The result is that $30,000 worth of payments to players from last year remain outstanding.

Warriors president Fedi Sleiman said he tried to renegotiate the deal to allow Mehajer an opportunity to pay the outstanding fee over the course of two seasons in an attempt to recoup at least some of the money, but to no avail.