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The touch judge who missed the last-minute escort in Manly's NRL loss to St George Illawarra has been dropped to reserve grade.

The experienced touch judge who missed Tim Lafai's escort on Manly winger Reuben Garrick in the final minute of the Sea Eagles' loss to St George Illawarra has been dropped.

The NRL's head of football Graham Annesley defended the rule on Tuesday, after Manly coach Des Hasler claimed that no-one understood the escort law.

But they confirmed senior touchie Nick Beashel - a long-time grand final and State of Origin official - would be relegated back to reserve grade after failing to spot the escort penalty on Saturday night.

Chief referee David Munro has also been put back to an assistant role while pocket referee Liam Kennedy will be sent back to the touchline - although that is partly due to another senior official returning from injury.

"In our view the person most primarily responsible for missing that was the touch judge who was standing directly beside it," Annesley said.

"(The officials) agree it should have been a penalty. It's a big miss given the circumstances."

Manly were denied the penalty despite pleas from captain Daly Cherry-Evans on fulltime, which would have given them the chance to kick a goal to level the scores at 12-12.

It prompted a debate over the escort rule and whether players and coaches understand the law.

But Annesley said it was simply a matter of whether a player had eyes for the ball or their opponent.

"The laws of the game don't allow any player to deliberately obstruct any player who is not in possession," he said.

"If they have their backs to the attacking players coming behind them and they are looking at the ball ... that is the judgement call referees have to make.

"When you see someone move towards another attacking player, stop and brace and know there is going to be a collision. That's an obstruction."